Editors choice comments
Impressive. Other professionals argue that only restricted areas of their work should be covered by AML/CFT obligations. Even the (rushed?) proposals themselves adopt the simplistic old-style whack-a-mole form of regulation, covering one gap and then looking perplexed as the displacement effect does its thing, and criminals continue laundering in the many others remaining.
REAA just say it straight. Nor do they artificially limit it to a specific class, even real estate agents. Pretty much, when anyone involved in property transactions becomes aware of something that looks dodgy, that's the...
If house prices keep rising at anywhere near current rates, they would never save enough for the deposit.
If they started saving that amount 3 years ago they would be $3000 further away from having a 20% deposit now than they were when they started with nothing.
So you buy a bottom of the barrel Auckland dwelling for 650k @ 10% deposit with a 25 year term?
That's $734 a week at current interest rates, week in, week out for the next 25 years. For a really crappy house. Assuming the rates stay at record lows. Wage inflation is virtually nil.
FHB don't need it made easier to take out huge mortgages. They need prices to come back to reality. End of story.
Pity poor old Auckland ... another Goofy mayor ...
... it's just been a revolving door for Disneyland characters , hasn't it , the Queen City's mayoralty ... a series of lame Ducks , one's who Mickey'd around , and now plain old Goofy himself ...
It is both archaic and modern. Many names for it. Hawala is one. Ancient form of money transfer that actually transfers only the net amount not offset. (The speed boats full of cash is the tiny fraction, good for media, the real deal is the offsetting). Traditionally a simple ledger system based on trust. Fell away as banks became the provider of choice, but as banks apply blanket derisking, plus modern technology, it may see a resurgence.
In the medium term, does it show a short-term compliance mindset potentially creating a much bigger business risk for banks? Combine that with eroding...
Yes Graeme ; it's for the best if you keep a little of the magic white powder up your sleeve , just in case the property addicts begin to come down from their highs ...
... then , give them another snort of the good stuff , to keep them up ... ... higher than Lucy in the Sky with Diamonds .... up up and away in our beautiful property dream ....
Forget shipping containers , and government affordable housing schemes or motel units ... ... this Ponzi bubble is big enough to accommodate all of us , and a few rich investors from off-shore too ....
... far out , man !
"The Law Society does, however, note a concern over how the Law Society would be funded to carry out this supervisory role."
We will do it ourselves, but you must pay for it.
The limited increase in Auckland rentals underlines the key component that the Auckland property market is a speculation driven bubble. I rented there for a couple of years and the rentals were cheaper than Wellington for a small apartment. The limited growth in the apartment rentals however does surprises me, as much of the population inflow is students who seek inner city shoe-box apartments.
There will be a point where capital gains will ease; 'investors' will get tired of a weekly subsidy of the rental and sell the property - resulting in a decline in property values.
The point...by: ex socialist
Before the GFC interest rates were too low, money was too cheap, debt was too high and asset prices were too high.
This caused the GFC. The GFC should have been the event which reset prices, and brought reform.
Instead major central banks lowered the interest rates, and debased the money (QE). They made money cheaper.
It was the worst possible outcome. Debts then got higher, and asset prices got higher. Moral hazard abounded.
Reserve bankers being human have a low interest rate bias, to try and generate growth on their watch. The path of least resistance. Any fall in the market, they are...by: Guido
That wasn't how I read it. She may correct me if wrong, but the issue Deborah raises is about a level playing field. If we had one, tax rates could actually fall. It's not about another tax, but a tax system that taxes all income, however earned. Because capital gains isn't taxed, and because we have negative gearing, people with sufficient income/assets, perfectly logically, prefer property investment. Not because property is a better investment than equities, bonds, gold, small business, etc, but because it has a massive tax advantage. The tax system therefore skews investment into property...
I am going to take my guitar and sit in the shade of a pohutukawa and watch the waves come rolling in
If they're going to spend $3.4b on a train system, I would much rather the money was put towards a high speed Auckland to Hamilton commuter train service than a tunnel in the CBD. I personally feel that would provide a lot more benefit for a lot more people. For one, living in Hamilton and working in Auckland (and vice versa) would be a much more viable option.
Could we redirect a small portion of that $ 40 Billion , to the good folks of Havelock North , to construct a freshwater system that is 100 % Pure , free from any risk of dirty dairying poisoning them ?
... it's not a good look for " NZ Pure " , when you hear on the BBC radio , that 3000+ Kiwis have been laid out by their own drinking water , in the self proclaimed clean and green paradise , down under ...
Pardon me , Mr Key .... but where is it written that the government must protect homeowners' equity ?
... knock me down with a feather , dude .... but I thought justice , education , security , healthcare and welfare were the job lot of the Govt ....
So , if there is a downturn in residential property , are you going to bail folks out ... just like you bailed out a select few of the finance companies who collapsed ... South Canterbury Finance ...
... are we , the prudent investors , going foot the bill once again , for the careless and the greedy ?
Remember these ratios include the roughly one third of households with no mortgages.
Sit down with a stiff drink and recalculate debt ratios of those with debt.
.. I think this brings us back to Gareth Morgan's point that our current tax system is skewered against wages and company profits ... we tax the sh*t out of those ...
And it's skewered towards capital gains ... you can negatively gear at the front end to off-set losses against other income , and there is zero tax when you choose to sell out and reap your profits ...
.. it's a no brainer in NZ , to speculate on property , rather than to produce anything ...
Why should KiwiSaver be allowed to be used as a housing subsidy at all? It simply enriches vendors, inflates house prices and robs the young of their retirement savings.
This is also yet another article that suggests that the government should do things. As we are all now fully aware, this government categorically refuses to do things.
It's unlikely this housing party will end. New Zealand is special (needs).
Woooo-hoooooooo ! ... we're ahead of the Yanks and the Poms ... and second best in the whole wide world ...
... dang , there's a silver medal right there , folks ... keep pushing harder guys , let's nudge those turkeys outta top spot , the gold is within our reach ... Gold everywhichway you look at it ... Sha-zam ...
Our little sky-rocketing house prices are beyond the magic $ million , onwards to infinity and beyond ... we're all gonna be rich , what could possibly go wrong !
Yes, hot water and dangerously thin ice. No surprises here from where I sit. Know of six people with unresolved claims against Tower of at least $1m each. And these are reasonable people just wanting what is due to them, no more no less. There will be many more of these out there
Has there ever been a bigger margin between one bank and the rest for the 2yr rate? That HSBC rate is fantastic.
You might have thought that New Zealand had learned a lesson about "putting all your eggs in one basket" from the UK joining the EEC, way back when.
Diversification mightn't make you rich, but it can stop you getting poor. Perhaps.
by: Henry Filth
If banks want customers to deposit for longer terms then they have to make it much more attractive for them to do so. Not only are the interest rates pathetic even at longer terms, most banks now require 30 days notice to withdraw money from a term deposit prior to maturity and some also apply penalties for deposits withdrawn early. Depositors are also at the mercy of the OBR if it is ever activated and risk losing some of their savings. Meanwhile the banks are making $billions.
this is just getting too easy for labour. They have the govt over a barrel here, like with the housing crisis, a connected issue
Part of the issue that no one discusses is that of inheritance. Most people now receive monies from their parents estates in their 50's and sometimes 60's. They themselves have often paid off their own mortgages and are not looking to move. They are often reluctant to invest in the stockmarket so prefer to buy a second property as their pension.
That another factor happening in the market. The baby boomers having had a bonanza on their own properties are then having it off again off the estates of their parents.
Of course there are exceptions to this but helps explains the high level of...by: Penguin
It is very sad story. Many people will get excited but actually it is tragedy for future generations and for Auckland. The ignorance of government and lack of actions over last years is just unbelievable (both lending and immigration....)
I removed the letters from my mailbox - 8 out 9 were from real estate companies offering to value and sell my house! GO AWAY and save the trees! I'm not going to sell and buy, or buy and sell...
These people actually forgot that there are other ways of functioning rather than buying and selling houses...