Editors choice comments
I am a farmer and I think the governments approach to the ETS around agriculture stinks. No communication has been had and It is short sightedness that is causing the farmers and land owner to miss developing new avenues of income.
I think that agriculture should be brought into the ETS, the whole lot not just the farting belching animals.
Grasslands need to acknowledged for the potential of sequestering carbon to the soil, new forests should have a benefit of gaining the carbon credit of the full potential of the carbon locked up. New bio tech should have access to grants and credit lines...by: doug123
Yet more evidence that Celia is asleep at the wheel.
Unfortunately, for the majority of good people in Wellington, the inmates have taken over the asylum.
Such a massive shame this beautiful and once proud center of commerce is being reduced to a backwater.
What's different now, from other cycles? Drowning in debt, debt ratios are way higher, by every metric. Prices are absurd, you used to be able to buy a house that you could rent out, and it would cover the mortgage plus generate a bit of free cashflow. If you read how NZ's richest property investors started out, it wasn't with negative free cashflow and 30 yr interest only mortgages. People have lost their minds when it comes to Auckland, thrown out common sense in pursuit of the latest get rich quick scheme. I'll be surprised if it stops at 40%.
House prices are 9 times the median anual household income in Auckland, nearly 7 times in Tauranga, getting there in Hamilton.
Could you explain based on what exactly do you see indefinite growing prices when they are already way overpriced and not keeping pace with real economy?
Even better, could you explain who exactly would be buying houses when rental yields are lower in many parts than saving accounts?
I'm amazed by these kind of opinions in the most pure curiosity driven way.
We're heading towards a serious global crisis and seeing the failure of quantitative easing measures,...by: muntijaqi
If the government wants to run high immigration rates they need to also help pay for the required infrastructure. Their anti public transport agenda will not work - there isn't really any free land around to build more roads on. Adding the odd lane to a motorway every so often isn't going to be enough.
If somebody gets rich by sitting on land,, for whatever number of years, they have not provided a service, exported anything, employed anybody or created any net wealth, or paid any taxes.
Some may regard that as obscene.
Central Park at 315ha services the population of Manhattan (about 1,600,000). Remuera Golf Club (privately controlled with the right to exclude the general public) services 1,400 with its 280ha.
The reality is you could get a much better return to the public by breaking the course into one decent sized park and several neighbourhood parks that everyone can use. And you could get much greater biodiversity than rolling hectares of mown grass with occasional plantings of introduced tree species.
by: Donald Ellis
Just think, if it wasn't subsidised, and the Remmers set paid their way instead of being parasites, membership of the club would be a much more impressive status symbol. The silly primates slave to dominance hierarchies would be much more impressed if it cost an extra $11,000 per year.
Except (There is no good reason I can see to socialise those costs.) that is indeed however the expectation of the present home owners. ie they fight councils trying to put warnings on their properties as it depresses the value. The next purchaser will then have a claim on the council (rate payer) as they were not warned!
For new homes, if they are built in areas too low then that does indeed increase future costs/losses.
Lets also step outside of homes, what about farming? given 1m sea rise by 2100 (say) what is the impact to farming? on top of that the amount of climate change that...by: steven
There is a problem, no doubt about it. And it will be an expensive one to remedy/remediate. Wright's observation that the number of houses involved is more than the Chc Red Zone is very useful perspective. A 1.5m rise quadruples the exposure. (And that is big time.) But I think there is another perspective missing in her Report. There are 1.8 million dwellings in New Zealand, being added to at the rate of about 26,000 per year. So we are talking about 0.5% to less that 1.5% of all dwellings, and we have 25 to 75 years to adjust. That won't reduce any risks or costs, but they will be spread...by: David Chaston
... I suspect we wont need it, primarily due to the impact of ride sharing APPs on traffic volumes. Some rather crude one's have arrived (such as chariot), but imagine when this is refined to the point when you can walk out the front door, send a notfify on your phone, passing car picks you up, automatically calculates your fare, auto debits, plus an ability to recalculate if someone else picked up on the way - a version of uber but cheaper as the driver is on his way to work or whatever. Bad news for car manufacturers and associated industry - and challenges the projections for more and...by: rastus
What people have not woken up to as yet is that the economy has moved, or become, digital in the digital world.
Banking work is being carried out by electron digits not people
Facebook, Google, Trademe and others work is being carried out by electron digits not people
Apple makes products so people can do things in the digital world, not the real world.
Entertainment such as Netflix work is being carried out by electron digits not people.
We are becomming just spectators while electrons do the work. - People are redundant.
by: Mike B
I agree that banking regulations are seriously flawed and encourage banks to go into mortgages rather than investing in productive businesses. "Just $1.50 in assets will now support a $100 loan" (http://www.abc.net.au/news/2014-10-02/big-bank-profit-to-be-hit-as-apra-...) but for business loans the risk weightings are regulated differently and I think they need about $10 in "real money" to issue (print) a $100 business loan (don't have the numbers handy). So if they are paying out interest on those deposits then obviously a mortgage is much cheaper for them than a business loan, even if they...by: avatar99
Deflation becomes a problem when it causes people to put off purchases (because they know the price next month will be lower). Decreasing revenues -> companies going out of business -> layoffs -> less money to spend -> decreasing revenues... This was the cycle in the great depression and it is what people are worried about. Decreasing prices because of increased efficiency (like we've seen in the tech industry for years) are not really a problem.
#1 - 3 Excuse my ignorance, but why are low prices a problem? If any commodity can be sold cost plus (covering reasonable costs of production, operations etc) but are still low why the fuss? If an organisation cannot sell the products to cover costs plus a MODEST profit, and cannot reduce it's costs then should it be in business? Why must we forever pander to Capitalism?
#5 the "hollowing out" is driven by rapid technological change occurring faster than the majority of a labour force to keep up. A significant problem for Governments will be that while kids are being educated to the latest...by: murray86
....level the playing field entirely. Joe Blo gets no tax deduction for home associated costs, nor should a PI. Simple. To an extent they have done this with GST (not claimable on rentals), so why not go all the eway with income tax as well? Encourage investment away from housing into production.
Statistics NZ have also usefully published a report on Housing in Auckland and show over-crowding in that region has been at similar levels since at least 1991. Check out Fig 46 on page 70 to see how crowding has eased everywere during that time except Auckland.
So this is not a problem that has been recently imported. It is a chronic problem known to both the government and Auckland Council. Shame on them both for tolerating the misery of our fellow human beings.
by: Donald Ellis
An investor buying at 80% LVR, on a 7% yielding property, which is likely just cashflow positive, is borrowing at 11.4x debt to income on the deal.
At 10% yield which will be cash flow posititve and represents a great return compared to most other investments, he's still borrowing at debt to income ration of 8x.
If an investor was limited to 4.5x income, at 80% LVR, he would need 17.7% yeild on the deal before he could buy!
OR, for a 7% yielding property, he would require 70% DEPOSIT, i.e only borrow 30% of purchase.
Would have massive impacts on rental market in NZ this measure was...by: Simon
500k homes in Orcs, appreciating by over $100k per year, giving Orcs an extra $50 billion per year, and this is the result. ____ you very much Auckland.
Why not sell naming rights to the city while we're at it. Think about the exposure, "and today we have 18 degrees forecast for ANZ Auckland City", that would be worth at least one dollar a year off rates for each ratepayer.
Yes exactly, we should get rid of Remura Golf Club. Either open it up to the public to alleviate pressure on Cornwall park, or sell if off and use the funds for the betterment of the wider public.
Having so much public land reserved for so few people when the wider population needs greenspace is regrettable.