Editors choice comments
Not only are they not paying (they never do - we never take advertorial, ever), they didn't even offer it. I sought it out. I called them for permission to re-post. I thought it is an interesting alternative view to the usual EU 'cultural' 'soft-power' content you always see run in our euro/british dominated media and widely available. And thought it might round out or even challenge embedded sterotyping.
Some readers commenters seem to think a) we should only run views they agree with, and b) what we run is a reflection of our personal views. Neither is true. We are however interested in...by: David Chaston
As Cowboy suggests Buzby, it's a start. It should at least help deter some of the least sophisticated criminals using real estate to launder or park a few million in criminal proceeds. (And may slow some of the foreign capital flight funds being parked in NZ real estate too).
But the most sophisticated professional launderers already use vast webs of corporate vehicles and professionals in multiple countries masking their activities anyway, so it's hard to tell if the new settings will change anything much for them.
And real estate (as far as we can tell) is most useful for mid-tier...by: Ron Pol
The ones I feel sorry for are the elderly - they're basically being forced to do what unfortunately many of them did (with less reason I have to say) back a few years ago when they invested with finance companies, invest into an over heated fundamentally unsound property market. And many with a lesser understanding of commercial property will probably do it in the retail market at even greater risk.
by: Grant A
The best thing that the government could do to encourage investment beyond property would be to eliminate the huge tax advantage that property investment enjoys and base the economy on something more sound than the immigration population gain demand fuelled ponzie scheme.
I must have my calcs wrong:
Total assets have risen by $26.2 million to $1.77 billion
borrowings rising to $210.7 million from $172.4 million
That's a 1.48% rise in asset value whilst taking on 22% more debt?
That land lease conversion was always a bad investment - regardless what the milk/meat price was. Lurking in the back of my mind is a sweet deal for some old boy mates - convert the land on the government dime over a 40 year period and on sell it for huge profits once converted. Absolute landowner win;
I wonder how the value of their asset...by: Kate
It would seem to be a Claytons tax- a tax you have when you don't want a tax, but to give the appearance of doing something about foreign buyers of property.
If at some stage the government do wish to collect tax on property without having a capital gains tax, I wonder if they will follow the British Conservative government's recent move to not allow deduction of interest as an expense.
The cat would be enjoying a pigeon feast there if it were not the conservatives who had brought the measure in.http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/...
Hundreds of thousands...by: Stephen L
Regarding no 1, all the earlier QEs have only helped banks, investment and commercial to increase their revenue, profits and bonuses. They seem to be addicted to all that free money and any small chance, they ask for more such lollies. Which is the larger TBTF, China or the US Banks ? Throw in the coming Election Year in the US, the Banks will certainly have their way again, scaremongering, et al. They have big lobbies working for them.
I think I might cry - mobile phones now classed as capital goods:strong increases in consumption goods such as clothing, and capital goods such as mobile phones.
Why is transport the only government spending that needs to be spread 'fairly' across the country? Should the government also evenly spread superannuation spending 'fairly' across the country?
Fascinating - graphic evidence - so, car price inflation just took a leap, or is it a case of previous dealer margin pillaging can accommodate cropping to facilitate sales?
by: Stephen Hulme
Good comment, PeterPen. Nobody should confuse stockmarkets with business fundamentals.
Sometimes stock prices and individual company fundamentals align more or less. Every serious analyst, every careful investor, contributes to this alignment.
But stockmarkets - like individual stocks - can move right out of alignment with fundamentals. They froth via created and cheap money - both of which mean unearned money - and the naive enthusiasms and crowd motivations of gamblers.
The froth constantly needs cleaning off. And for every argument anyone can muster - economic, social, environmental,...by: workingman
If I were a large employer I would seriously be considering relocating to Hamilton at the moment. Lower costs and a rapidly increasing supply of young talent to employ.
A while ago I did some analysis comparing the GNP growth rate per capita versus population growth rate for most of the countries in the world. The results were that there was a mildly negative correlation. Some of the wealthiest countries with the highest economic growth rates have actually got shrinking populations. When you think about it it makes sense because a greater percentage of the economy can be directed at export earning products and services. High population growth rate economies are hampered by the capital costs and proportion of the productive economy that must be directed at...by: Chris-M
Ive been renting for quite a few years in Auckland. 5 years in one place with no rental increase, 2 years in the current place (Central Auckland) with no increase. Friends just rented a place that is also central, zero competition.
Reality differs from the news in my experience
So was the contract with Wairakei Pastoral ever viable? To convert forest to dairy is an expensive excercise. I have heard $11000/ha quoted. What was the payback? Clearly at the moment there is no payback. So what recourse does Landcorp have? This is lookjng like a crisis. How bad are the figures right now? How bad is the cashflow moving forward?English must be tearing his hair out to go public on it.
Yes , but .............we cant take a she'll be right attitude , there are too many variables .
We need to diversify the economy ( into financial services and new tech industries such as robotic manufacturing, and IT development like Ireland has done)
We need a Silicon Valley which must be an EPZ WITH TAX INCENIVES to get it off the ground and research tax breaks too
We need more value add to dairy ( eg ; cheese instead of powder )
What if :-
1) China goes into a recession
2) They stop buying milk
3) The Eurozone floods our market in China
We have relied on a narrow base of food commodity...by: Boatman
does he realize the compliance industry and costs he will create by lowering the 400 dollar limit
you now will also have to pay the MPI and custom entry fee of $42.91 as well as set up client codes for everybody that buys offshore
also good luck finding a customs broker that will clear for less than$100 a shipment
An import entry transaction fee (IETF) of NZ$29.26 (GST inclusive) is payable on every import entry clearance and import declaration for goods.
Note: A Ministry for Primary Industries biosecurity system entry levy of NZ$19.98 (GST inclusive) is payable on every entry on which an...by: sharetrader
A couple of observations.
A significant number of Investors have been hurt by the major drop in the Shanghai stock exchange. In China there has been a lot of borrowing against inflated share prices and that is unravelling. At the high end of the market we are seeing some impact from this - in terms of cash flow. I wouldn't overstate it but there is an impact.
Second observation is that I think a lot of the declines you are talking about are coming from local banks. There is a general tightening up of credit criteria going on. With tighter regulations (and policing thereof) of...by: JB Squirrel
Not much attention has been paid to the 'interest free" Fonterra loans. They seem a very odd move to me, and might have some highly unexpected consequences. I would like to hear some more discussion.
Wait about 18 months out, be some bargain Corramandal bachs for sale....
A LOT lower ocr is going to save many peoples bacon in AKL, kicking the can another 5 years down the road
by: IT GUY
A great article. This should be compulsory learning in school. I'm still amazed that the mass populous has no idea how money/credit is created especially when it underpins the entire global economy!
Attachment to export of commodities will indeed, for a period, make us rich. And it will also, just as certainly, for a period impoverish us. The heights and depths of these periods, and their extension in time, are largely if not completely out of our influence. The factors are external to the commodity producers.
Because the factors are external, out of our hands, all that Fonterra, government ministers, economists and other commentators are able to offer is the plaintive platitude that ‘prices will rise’. No-one knows when they might rise or by how much. The influences are ‘out there’,...by: workingman
Re #6, has poor old Mike found a buyer for his used Ferrari yet?
There is definitely a disconnect between what the powers that be think are the problems facing NZ and the actual problems...
Perhaps our Prime Minister should live in a modest state house during his term rather than a Parnell palace?