Editors choice comments
Who is pulling the strings. The RB Governor is supposed to be independent of the government, but is he. I get the impression that there has been a bit of tension between them. Has he been muzzled? Does he not want to stand up and defend actions that he was forced to take. Your reading of his earlier speech suggests that he did not want to lower the rates and I said at the time it did not seem warranted. The subsequent performance of the economy certainly confirms it definitely was not required.
OK, can you please help lead the way out of this intellectual laziness, and outline just one crucial and positive function property speculators fulfill in society?
by: the Joneses
Well done Interest.co.nz for treating the public intelligently. For fostering the conversation about what to do about thorny problems in our society -especially the thorny problem of unaffordable housing.
It would be easy to succumb to the lowest common denominator of click-bait journalism -by sending out journalists to find and highlight every little difference between Labour and the Greens. This would deprive the public the opportunity of hearing an explanation or a conversation about why particular policies are important.
I think ultimately the click-bait route of not engaging in genuine...by: Brendon
Why give a speech if you do not have anything to say and/or whatever you say you do not want anyone to know.
Is the intention to spark lots of wild rumours about the contents of the speech? Because that's what'll happen.
Hi - Matt Paetz here. Thanks for the comments.
I never mentioned energy neutrality *at all*, nor was I implying it . You have misrepresented my viewpoint.
I'm talking about a development model that has a degree of self sufficiency and is 'better' environmentally than conventional greenfield housing development.
I would be interested in knowing how you think Auckland's housing should be addressed if you disagree with my proposal.
To those questioning the economic viability - I'm actually working on a (confidential) project under this scenario and it would deliver 3 bedroom homes on small...by: Fritz
I dearly hope that REAs have heavily invested and leveraged up their commissions into NZ real estate.
It will make the comeuppance more keenly - and permanently - felt.
A mate in the biz was advised end of last year to hold on to any cash reserves as 2017 will be turbulent. More agents fighting over less listings taking longer to sell. Lean times ahead for some.
Lowest Auckland December sales in 6 years. 16 percent lower than last year, 33 percent lower than peak in 2006. Historically low interest rates , surging immigration , rampant Asian credit and house flipping, housing shortage,listings shortage,, low unemployment, oodles of confidence, rents about to spike higher, the economic powerhouse of New Zealand, a desirable city , a global city ,and demand plummets. Oh dear.
The concept of CB independence is great.
Unfortunately, the CBs seem to take the view that because they have no mandate in regard to social issues they can ignore the effects of rampant credit growth and asset inflation on the integrity of society.
To quote Hazlitt: "Inflation discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce. It tears apart the whole fabric of stable economic relationships. Its inexcusable injustices drive men toward desperate remedies. It plants the seeds of...by: Peri
The Donald Trump " You are fired ! " Award , 2016 : Judith " Crusher " Collins ... go to the back of the class , Judith ... and resume waiting for your turn to be the hall monitor ... waiting .... waiting ....
The Hamster Wheel Award 2016 : Andrew Little : the little legs are pumping like crazy , but you're still getting no where .... just spinning on the spot , boyo ...
The Services to Political Debate Award 2016 : John Key ! ... now that you're gone , the kiddies can start talking about the naughty stuff once again ; the retirement age , the housing prices and shortages , immigration...by: Gummy Bear Hero
Merry Christmas (Old Fashioned Style).
Twas the Night before Xmas and all through the bach
Not even a weta was making a scratch
Woolly socks were hung by the pot belly with care
In the hopes that Santa soon would be there
The children were snoozing in a light summer's breeze
Whilst dreaming of spongy pud and lime green cream freeze
And dad in his walk shorts and me in my jandals
Had just settled down for a couple of handles
When out on the lawn I heard such a ruckus
I sprang from my Lazy Boy to see what the fuss was
I ran to the sliding door, gasping and wheezing
Threw open the...by: Alter Ego
I'm amazed whenever I talk to kiwis of my age (early 30's) about buying a house because they are totally convinced the "problem" is simply to save enough deposit for a huge mortgage.
Generally they don't seem to care much about the total price, not even about the interest. They just think of how much they'd have to pay each week and if they have enough cash left for groceries they're good, ad infinitum. Their goal is "to save for a deposit". After that it's all happiness I guess.
It's like a filter that separates the ones that will live happily afterwards from those condemned to a miserable...by: muntijaqi
A very Merry Christmas to all your team at interest.co.nz. too.
Look forward to the New Year which I hope is going to be a great one for all Kiwis.
I suspect it's actually many of those petrol station attendants on a working student visa that, following completion of their business study, morph into the 'chefs' and 'retail managers' in respect of those permanent residency statistics (given the oil companies don't provide the bogus job offer path to permanent residency).
Cross posted comment from the 'housing minister - who he?' thread and edited to suit...
The Game of Two Halves - Land and Hoose:
Zoning still exerts a 10x Planners Gain compared to rural pricing of $5K for 600 squares of raw dirt,
Councils still exert Financial Contribution racketry - no contribution, no consents, permits, movement. As this is early in the development cycle, interest and 'carry' rates start to bite early.
The 'carry' can easily double initial costs over the typically protracted development cycle. So Councils' injection of Time can, alone, cause significant cost...by: waymad
Are you saying that it would be as simple as exporters only accepting foreign currency for their products, then auctioning it to the importers? If so it is a great idea as it would seem to considerably balance up the balance of payments and direct our focus to export earning endeavours.
Would it be that simple though? What would stop people just going to the bank and changing the currency. This proposal implies a disciplined relationship between export dollars earned and import dollars spent. Presumably loans must be raised to cover the difference at the moment. What would stop that...by: Chris-M
Another excellent article thanks David. I guess in this situation, massive shortage, you would look to replacing the housing minister who is failing...but of course there is no housing minister now....
Cmon its blatantly simple - the cost of "borrowing" money is getting more expensive and for those that continue to say its all a smoke screen by the Banks are completely wrong. Long term bond rates are increasing at an alarming rate, and combined with the "Trump factor" uncertainty, home owners should be prepared for the inevitable increase in 3-5 year interest rates next year, if not before. Unfortunately for some this will prove too much.
Cameron Bagrie was on RNZ this morning claiming rate rises were 'a long way off'. Someone on the other side of his office must have other ideas.
My guess is that only about 0.1% of the population is aware that depositors are merely unsecured creditors. Somehow banks give the impression that the money deposited with them is held in trust and invested on the depositors' behalf as responsible intermediaries. So blowing their cover is interesting.
Of course, if the RBNZ were actually to do their job they would make exactly that change as Mervyn King suggested. They would also insist the NZ branches be real independent subsidiaries, with at least 25% listed on the NZ stock exchange. So ANZ NZ would really be separate from ANZ AU, not the...
Diana Clement is the sort of hero who should figure high in the new year honours list. Dame I think.
Has not allocated housing to a minister. Far out, probably the number one issue in this country and he ditches the ministry. Cup of cold sick, anyone?
Good on Diana for doing it. Good journalism sparks many prosecutions that might never otherwise happen. Scarfie's other point is a good one. The issue is whether ComCom should have run the case, or police. The description here sounds much more than the usual false and misleading under the Fair Trading Act, where companies and staff typically make genuine mistakes, don't know the law, cut corners, push the boundaries, etc, but don't actually set out to break any law.
We don't know if that's the case here of course. It may be 'just' misleading and rightly conducted by the appropriate agency....by: Ron Pol