Editors choice comments
In August I will have $180K all floating. I am going to fix $80-100K at special 2 year rate. Pay it all off at around $1000 pw payments. Rest will float and pay off as we go. 4 years all done I hope.
If you take special 2 year rate you should aim to pay off more pw than the minimum. By minimum I don't mean from interest only base.
While quaffing a glass of the 2017 Schadenfreude, I note the following Granny Herald headline:
"Large affordable housing project in Manukau hits snag". Snag=land prices too high to make 'affordable' happen.......http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11874136
Now There's a Constraint - and all caused by the local CCO, whose CEO's gonna have some 'splainin' to do Monday, methinks.....
And there'll be plenty more where That came from, so the various Targets announced by the hapless pollies do look a trifle - shall we say - Optimistic....
Totally agree, I remember rational decision making. I hope we get back there sooner rather than later as the journey back is always harder the further you go. But all bets are off from me at this point.
“The market can stay irrational longer than you can stay solvent.”
-John Maynard Keynes
Agree - more information on housing would be helpful.
If nothing else, it would increase the chat and further fuel NZ's obsession with housing - which, I note, has reached fever pitch among the people who contribute here. (-;
But seriously, the better the quality of the information, the better the quality of any resultant decision.
Further, good quality information helps keep transaction costs down and makes the market more efficient - which is a bonus for those people who are actively buying and selling.
"What may be fair and reasonable in any case will depend on the circumstances". Exactly!
What that means in other language is "If the Bank makes a mistake - any mistake - but it intended to abide by the Code, it isn't liable - for anything!". I have actually had a Divisional Director of a local bank sit in front of me and use similar words to those.....followed by "If you don't agree, go to the Ombudsman"....
Wow for the first time I can remember the BNZ just sent me an e-mail about their term DEPOSIT interest rates. Is this a sign that the banks will start moving on this and need more local funds for lending ?
This has been staring them in the face for their whole tenure in government, i.e. 9 years. It is long past the time when they should have solved these issues; so English's words are pretty hollow and without any credibility.
It's not "lying". It's the inability for anyone to take the bull by the horns. Think about a modern progression of Gliding On.
.. if the younger generation in the UK had've been engaged in the Brexit referendum ... it would have failed ..
That is a lesson to the younger generation everywhere : Use your vote , or risk a handbrake being placed on your future ...
... 3 more years of Wild Bill & the Gnats ... 3 more years of see no problem , steady as she goes ... smiley wavey .. flipping heck !
2 billion for a new motor way
3.5 billion for a loop at the end of a rail line
1 billion in other road projects
That's 6.5 billion dollars dived by $35,000 for a self driving car. That's 185,714. Yes the NZ people could own a fleet of 185,000 self driving cars.
What can you do with 185,000 self driving cars?
Run an automated car pooling network where the average occupancy is 3 people per car instead of 1 person. That's 555,000 people moved around the city in a single journey.
You can manage peak commute times, with automation, allowing a two trips per automated vehicle, now moving 1,100,000...by: gooki
To be fair, if you had to re-apply for your job with your employer every three years, even you wouldn't care about the long-term vision of the company; the short-term projects at hand would be your sole priority.
... but maybe we can defy hundreds of years of previous experience across every single economy on the planet , where excessive debt leads to recessions , depressions and massed bankruptcies ... divorces , lost homes , broken families and homes ... dashed dreams ... lives ruined ...
Maybe , here in NZ at least , we are truly special ... and " This time is different . " ...
... hee heee heeee ... I nearly kept a straight face when I typed that !
The Banks are a big part of the problem , they have lent money against ridiculous property prices , in some cases as much as two times or even three times the GV .
Here's a case in point :-
21 Chester Avenue Greenhithe with a Rateable value of $285k was sold for over $1,000,000 in August 2016 , and guess what ?
Barfoot and Thompson have it for sale on Mortgagee Sale and the Bank want to get " UPWARDS OF $1,0 million" and is offered by Amanda Zhou at B&T, the Property ID is 594965 on the B&T website
It went to tender in May and has not sold
The Bank deserves to take a haircut of...by: Boatman
Rating, as English notes and has been canvassed in these 'ere pages over a decade or so, is quite capable of intense selectivity. A sample: Schedule 3 Rating Act 2002.
Factors that may be used in calculating liability for targeted rates
1 The annual value of the rating unit.
2 The capital value of the rating unit.
3 The land value of the rating unit.
4 The value of improvements to the rating unit.
5 The area of land within the rating unit.
6 The area of land within the rating unit that is sealed, paved, or built on.
7 The number of separately used or inhabited parts of the rating unit.
A good article to inform people of their options. People need to start early and not be in a default kiwisaver fund in their 20s. Of course there are plenty of ETFs outside of kiwisaver so your investment assets aren't locked away.
Labour has to attack it on all fronts. Currently their policies don't appear to be much different from Nationals. The other problem is that NZ now lacks a strong opposition party, it has to join two small parties, and even that combined is far less than Nationals size. So very difficult now to get a change in government as labour is now so weak.
The building materials sector is something that needs to be looked at, as hardly any competition in the market, and we pay huge amounts for materials compared to other countries, which is one reason house prices are so high.
While they are at it, they...by: Rob
DTI implementation will be great news for FHBs, from the RBNZ's estimates there will be 8800 more homes available for their purchase rather than being sold to highly-geared state-subsidised speculators.
RBNZ's reasons for delay are weak and timid, - it should be implemented now.
And it's on public record. Hope his insurance company can't read.
Can't wait for the news headline: "NICK SMITH'S DEFECTIVE KNOB".
This is great news and long overdue.
We have to provide incentives to change behaviours otherwise nothing will change and a charge at times of congestion provides that:
Pick up another passenger to share the charge
Travel on public transport to avoid the charge
Travel at a different time
Queuing theory shows that marginal traffic increments can have disproportionate effects on capacity as we all observe when Varsity / schools are closed and traffic flows a lot more freely in AKL.
The technology to do this is economic and exists today.
We have to first optimise the capacity within our...by: JB
Good morning ladies and gentlemen, this is the captain speaking, you may have noticed that we lost power to all engines about 3 minutes ago. You see we buy our fuel from offshore suppliers and we seem to have used all of today's ration on our ascent. But rest assured that while our speed is now 140 knots, we are still at 36,000ft and don't seem to be dropping! While most aircraft stall at or around this speed, we assure you flight AKL is different. We have an observable history of altitude gain, right back from 45 minutes ago when we took off. So sit back, relax, and enjoy the award winning...by: Zombie ponzi
Well written article.
It would be nice to see a comparison per capita for the various categories as a percent of gdp for maximum comparability to minimize the effects of both inflation as well as population changes.
.. but but but but ... this time IS different ... it really truly is ...
'Cos no one has ever called us a " Rock Star Economy " before ...
... feeling very chuffed about that , we is ... like a Rolling Stone ... Who ... were flying like the Eagles , reaching Nirvana ... until the Beatles nibbled at our debt laden wings ...huddled together in our Crowded House ... as we began to sink faster than a Led Zeppellin ...
I was a participant of the Home and Housed report as I was a medium sized developer 10 to 26 sections per development. Plenty of suggestions all fell on deaf ears, cost of report $2m.
Then i participated in the Productivity commission report on cost of building and materials in NZ. $1.5m report 12 months in the making. Identified a duopoly and that it costs 30% more to build the exact same house in Auckland as it does in Melbourne. Still nothing came of that.
I was the only developer to attend the Wellington Home and Housed meetings , my other senior developer friends explained it would be a...by: MCNZ