Editors choice comments
Thanks Ryan. It's great to have informed debate, on this and other issues.
It would be great to also develop some way that we can actually enable genuine, open, evidence-based debate towards better economic and societal outcomes for all New Zealanders. Given the ideologically- and politically-driven kneejerk responses of politicians and commentators [all sides, I'm not being political here myself], quickly expanded and inflamed rather than channelled by sound-bite driven mainstream media, and further inflamed by ideologically-driven journalists and commentators, it almost instantly divides...by: Ron Pol
An interesting article to read and I had to think about it a bit. What strikes me is the likeness to the Depression. All monetarism has done is lessen the impact and to an extent conceal it. A shame that politicians want to apply the neoliberal technique of blaming those with no jobs and seemingly no purpose for their predicament. Not uncommon during the Hoover era.
We do need to seriously rethink how our societies work and the obstruction to contributing (not necessarily directly paid work).
Collaterating the common taters yields the following 'perfect storm' list:
Land prices wrong = everything on top wrong (Hugh P's refrain)
Materials duopoly and no chance of breaking it while BRANZ and other regulators drag the chain
Plannerista - the usual public service muddle which adds time and therefore money to everything they touch
A thriving parasitical infestation of consultants, architects and similar, needed to wade through the regulatory morass, each clipping the ticket
Complete lack of anything approaching a multi-proof (for consents) modular-housing approach, at least in any mass...by: waymad
Thanks for the summary, Alex. Certainly sounds like it demonstrates a good understanding of the issues. Very pleased to see them advocating betterment taxes - and I note the point they make about betterment taxes being a more progressive form of taxation. Not sure what they envisioned, but I'd apply the taxation method city-wide (i.e., as opposed to as a targeted rate - as there are many, many more publicly funded improvements that result in betterment everywhere within a district/city, not just where new residential building is occurring) - the betterment tax would replace what we now know...by: Kate
NZ Super is the single largest NZ Govt expenditure. Because it is not fully-funded and Pay-As-You-Go, the costs are rising fast. In fye 2013 NZ Super cost $10.2 bln. This rose to $12.9 bln in fye 2017, a +26.5% rise in just four years. As a proportion on taxes collected, that is a rise from 15.4% to 16.1%.
If we all live longer, get cost-of-living increases, etc. NZ Super will eat an ever higher proportion of the tax take. And those longer lives will also require higher and higher provision for the health budget (which is the second largest Govt expenditure item).
As Michael Cullen was...by: David Chaston
by: IT GUY
How much tax are we talking about? Say 10M litres goes as bottled water, $1/ltr is $10M. This is not workable IMHO. However 10c/ltr may work. Total tax revenue = $1,000,000. Why is this a big deal in reality? I do believe there should be a charge on volume but the income would open up a bigger can of worms. An export tax for bottled water perhaps, 10c/ltr?
by: Robert Meek
.. yes Mr ShareTrader , even ole Gummi Bar , who has been said to be unbrighter than a sick fire-fly's backside , can see that all natural assets of a nation ought to be vested within the crown ...
And as such , holders or users of the land , water or air , should be charged a per unit or an annual rent ...
... which ought to off-set some of the onerous taxes currently bedeviling PAYE tax-payers and businesses ... the productive sector ...
by: Gummy Bear Hero
Well the good news if that our Real Estate market is very much cooling now, largely thanks to China's 'Capital Controls over Capital Flight'.
Here's the 'Before article' when a lot of us were trying to warn NZ Investors/Commenters over what was happening in regards to Foreign Investors bloating our property markets and how that wasn't sustainable, though so many RE's are desperate to argue that spending spree party would go on forever.
The $6.6 Trillion Dollar Real Estate Bubble Brewing In The Commonwealth: https://betterdwelling.com/the-6-6-trillion-dollar-real-estate-bubble-br...
Being concerned about'' Snowballing costs'' would mean that politicians would have to think well ahead, rather than just 3 years ahead and that ain't gunna happen.
by: ngakonui gold
it seems we are following a well trodden path, elect a government for three terms, let their policy settings tip us into a recession, throw them out for the other mob and repeat
Gone are the days the fire dept only showed up to help those who were actually insured.
The Fire service should now be rolled into a Govt Dept and be fully tax payer funded.
Funny the Govt doesn't mention the cost to NZ home buyers (and our private debt profile) in terms of property price inflation caused by their failure to implement. Putting a number on that would show just how crippling and detrimental this hot money has been.
35% auction clearance is very low for March, which usually one of the strongest month in the year. In my opinion the Auckland R E market is now definitely on a down trend. I wouldn't say that for the rest of the country though
Oh dear - where's that late summer surge? Despite REINZ's best efforts at "Fake News" yesterday there's no disguising it's now a buyers market. Time to get realistic sellers.
by: Tom Joad
Gareth , this has been a long time coming . I was astonished while travelling on a US roadtrip how whole shopping precincts on the edge of cities had grown these massive malls, often to the detriment of traditional high streets .
As an ex-banker involved in Corporate Finance , I wondered how these were funded in the US , because here in NZ and in Aus we have listed property trusts/ companies usually with a lot of debt , but we seldom have MBS or bonds in issue ( Westfield beig the exception with debt paper in issue) so funding this stuff here is not so easy .
It could be a perfect storm...by: Boatman
This was an excellent report. The good, hard work has been done.
It's just cowardice / political gamesmanship to suggest that we need another damn working group
I don't really know what Labour are frightened of, as the necessary changes would have limited negative effects on their core voter base.
There is a perfect working example of Phil's assertion in Rolleston.
Originally centrally 'picked' for a satellite city to Christchurch, by the Kirk government of the early '70's, it sat, undeveloped and growing at glacial pace for the best part of 30 years. A common fate for 'we know best' policies which ignore economic realities.
But three factors have coincided and its growth now is simply spectacular - a true 'satellite city':
Selwyn DC, very early in its history (formed from amalgamation of 'old' Ellesmere and Malvern plus chunks of Paparoa Councils in '89) saw the chance and bought, at...by: waymad
It's my first comment on the site (go easy...), but I thought I'd give my impressions of the market from the perspective of someone whose family home is about to go to auction in two days (http://www.trademe.co.nz/property/residential-property-for-sale/auction-...) , in one of the suburbs mentioned above (Papakura).
The market has definitely slowed... we have had approx 15-20 groups through open homes over a 4 week Auction campaign, in September/October last year, we were attending open homes ourselves with this many people each day).
We weren't especially sold on Auction as a sales method...by: lukek
Just read the report summary. Certainly very weak numbers on the sales volumes nationwide - widespread double digit decreases with only a few area's bucking the trend. An 8% Auckland median price decline in 4 months should also be concerning especially when coupled with increasing inventory and days to sell. Bearish overall. This comments section is going to be entertaining!
The best thing about this article is the cartoon of Tony Alexander as a dog with a muzzle. Love your work, interest.co.nz.
A couple of things don't add up. How can someone sell something they don't own and why are lawyers not being asked to explain their role in it. The RE agent surely knew about it, how can he be working in the best interest of the vendor if minutes later the property is sold for 81K more. This reeks of money laundering, why would the 2nd purchaser want to buy a property that he has not seen, who in their right mind would spend close to a million bucks doing that. He has probably sold it to someone else and taken the proceeds out of the country, don't know how authorities can turn a blind eye to...by: GS
Boy, agents just can't catch a break these days. They're the 'used car salesman' of the 2000' s.
We're definitely starting to trend more towards listing privately, less fees, more use of tech to get results. The majority of properties in Scandanavia (sweeden, finland etc) are sold privately.
yet wages are not rising at the same rate, so those renting will have to forgo consumer spending to afford the roof.
also if a lot of the roofs supplied are with borrowed funds, a lot more will flow offshore.
then what, will the state have to step in with more funding? from where? more taxes? less services?
this is like the train heading towards the bridge that is out, we can see what is going to happen and we are waiting for the people in charge to arrange a fix but they are having a long smoko break instead