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A review of things you need to know before you go home on Tuesday; ANZ to pay 0.1% interest, Harcourts prices up, NSW increases taxes on foreign buyers, non-profit sector shrinks, food prices fall, swaps flatten

A review of things you need to know before you go home on Tuesday; ANZ to pay 0.1% interest, Harcourts prices up, NSW increases taxes on foreign buyers, non-profit sector shrinks, food prices fall, swaps flatten

Here are the key things you need to know before you leave work today.

TODAY'S MORTGAGE RATE CHANGES
No changes to home loans today.

TODAY'S DEPOSIT RATE CHANGES
ANZ added an interest return to its Business Call account today. It now pays 0.10% pa. 

NEW SELLING PRICE RECORD
Harcourts' sales were flat last month but prices set new records in spite of an increase in new listings.

ASB LAUNCHES 'ASB VIRTUAL', BUT WHAT ABOUT SEMBLE?
ASB has unveiled "ASB Virtual," which it says will enable Android smartphone using customers with Visa cards to pay with their phones. Visa trumpeted the announcement as the launch of the first mobile wallet in NZ to use Visa token service technology, with tokenisation replacing the 16 digit card account number with a unique digital identifier (token). ASB still also offers mobile phone payments through PayTag stickers and Semble, although the latter wasn't mentioned in the "other mobile payment options" segment of ASB's blog post.

HIGHER STAMP DUTY ON FOREIGN BUYERS
Foreign buyers of apartments and houses in NSW, Australia, will have to pay a 4% stamp duty surcharge and a 0.75% land tax surcharge from June 21, according to a NSW Government announcement today.

AN ATROPHYING SECTOR
Non-profit organisations contributed 2.7% to GDP. But a significant part of non-profits is that they rely on volunteer labour and that is not counted in GDP. If it was the adjusted overall contribution would rise to 4.4% of GDP. That is not insignificant. But the same data shows that it has fallen from 4.9% nine years earlier. In other words, the non-profit sector is shrinking, and the main reason is that the volunteer labour is the fastest falling component.

FOOD PRICES FALL
Statistics NZ said
today that food prices decreased -0.3% in the year to May 2016, influenced by lower grocery food prices which were down -1.8% and meat, poultry, and fish which were down -3.5% pa. This is interesting because yesterday Countdown was skiting that their prices were down -0.9% in the year to May. Clearly Countdown was holding on to more of the benefit than their competitors.

JAPAN NOT IN FAVOUR
Fitch Ratings has today affirmed Japan's Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'A' and revised the Outlooks to Negative.

SWAP RATES FALL FLATTER
Wholesale interest rates fell and flattened yet again today -3 to -5 bps, taking the 2-10 curve to just +50 bps. The 2027 NZGB dropped even more and now yields just 2.50%. (It has a 4.50% coupon.) NZ swap rates are here. The 90-day bank bill rate also slipped -3 bps to 2.37%.

NZ DOLLAR SLIPS TOO
The NZD has seen yesterday's softness extend a tad more today. Is now at 70.3 USc, at 95.2 AUc, and 62.2 euro cents. The TWI-5 is now at 73.7. Check our real-time charts here.

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13 Comments

Will Hon PM John Key follow and act - put stamp duty on non resident buyer.

When Mr PM will you realize and take action. You will have to take sone action, the earlier the better aps more you deny and delay more the problem in future.

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NSW is increasing stamp duty and land tax for non residents

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Stamp duty (any financial restriction) will not slow the market down or drop prices. A tax will only provide more revenue for the Govt.

A physical ban/restriction is the only way forwards.

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Not so

Auckland is caught in a cleft stick. They are required (by Central Government) to develop land which requires all the infrastructure that goes with it to make it viable. Auckland doesnt have the resources. Central Govt has all the loot. It's a mexican stand off. Auckland's ability to spend is limited by its lack of revenue.

AU has solved that. Stamp Duties are a State tax (ie provinces). It's a gold mine flowing with rivers of cash. They dont answer to the Federal Government on what they do with it

AU states get their infrastructure funding from Stamp Duties. They dont penny pinch on it. Oh .. States also have a payroll tax, plus land tax, all in addition to the usual property rates

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Should ask national govt what pose of kamasutra are they trying on people of NZ.

Stops stunts on poor Kiwi and the time has come to put stamp duty and do kamasutra with overseas buyer. We do not mind than what and how you do.

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The slow implosion of Japan continues: Nikkei down another 1%.

https://in.finance.yahoo.com/q/bc?s=%5EN225

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I wonder if the other countries in the world with over inflated asset prices and disappearing interest rates will follow suite.

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It’s official: Japan’s population is dramatically shrinking - Japan is far from alone here. The U.N. has estimated that a total of 48 countries will see their population decline by 2050. Japan is the third largest economy in the world. It's a crucial trading partner for the United States and China. How exactly will its declining population affect the wider world? Looks like we'll start finding out soon.

https://www.washingtonpost.com/news/worldviews/wp/2016/02/26/its-offici…

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Well done on the stamp duty NSW.

As Ryan from interest.co.nz mentioned in an article there is nothing stopping NZ doing a similar thing. The Korean FTA agreement allows for taxation exceptions.

Great to dispel that myth spread by people with vested interests in letting the bubble grow bigger. Use the funds to pay for infrastructure... BRAVO !!!!

"The measures are expected to raise more than $1 billion over four years and will fund essential services across NSW. “These new measures will ensure NSW’s property market continues to be an attractive destination for international investors while making sure that we are able to fund vital services into the future,” Ms Berejiklian said."

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And our Hon PM says that their is no solution. What sort of leaders do we in NZ says that their is no solution. It is not their is no solution but THEIR IS NO WILL.

One question that everyone should be asking our Hon PM. What is your compulsion to please and inliges asian buyers. Are you àfraid of anything or why will you be blind and deaf to the people of your country.

Definitely something is wrong somewhere. Seriously has anyone seen more thiclk skin people to be in permanent denail of the facts.

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Also key point is foreign Students and Foreign workers on TEMP visas will also pay the stamp duty..... Only permanent residents and Citizens are exempt.

The important point here is that in the Auckland Market
-Foreign Students and temp visas account for 35% of purchases
- Offshore foreigners account for 4%
Thus a total of 39% of buyers would be subject to the foreign Stamp duty tax should NZ do the same thing.

Excellent news !!!! Wake up NZ !!!!

"The surcharges will not apply to Australian citizens, permanent residents of Australia or New Zealanders who have stayed in Australia at least 200 days in the last 12 months."
Read more: http://www.smh.com.au/nsw/nsw-budget-2016-foreign-property-buyers-in-ns…

and lets remind us of John Key's Housing Crisis speech in 2007

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10455931
http://www.scoop.co.nz/stories/PA0708/S00336.htm

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With stamp duty will also get the much needed finance for infrastracture. Will Mr PM is needed and solution will follow.

We need dynamic just leaders.

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~40% of foreign buyers + over 40% bought by investors... not much left ..

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