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- Greens drop money printing plan 15
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February house sales hit a six-year high; median price up 7.6% on a year ago; Auckland median up 14.3%
Sales of houses continued to roar ahead last month with the number sold, 6,632, hitting a six-year high for a February.
The number was an increase of 34% on January and up 7.5% on the same month last year, the Real Estate Institute of New Zealand says.
The national median house price was up 7.6% compared with February 2012, while Auckland continued to be the real hot-spot with its median up 14.3%.
However; the national median house price is still NZ$7000 below the record set in December 2012.
The national median price rose was NZ$382,000 compared with the record NZ$389,000.
The continued heat in the housing market is again likely to be commented on by Reserve Bank Governor Graeme Wheeler when he makes the central bank's latest decision on interest rates on Thursday. The bank is universally expected to hold the Official Cash Rate steady at 2.5%, but economists are certain that the governor will again be concerned about the strength of the housing market and its potential to inflame inflation.
ASB senior economist Jane Turner says the latest REINZ figures suggest house price inflation is running well beyond the RBNZ’s December forecast of 5% per annum.
"Undersupply is the key factor contributing to strong house price increases over the past year. Over recent months, dwelling consent issuance has picked up and indicates an increase in new housing construction in Auckland and Christchurch. However, it will take some time before this modest lift in supply has a meaningful impact on alleviating housing market pressures. In the meantime we expect continued upward pressure on house prices," she says.
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"...The RBNZ is likely to become concerned by the continued increase in house prices and the subsequent lift in credit demand, particularly given debt-to-income and house price-to-income ratios are already elevated. The OCR is the most effective tool for dampening housing demand. However, over the coming year the RBNZ has to weigh up increased pressure in the housing market against a high NZD, gradual economic recovery, drought impacts and subdued inflation pressures.
"We continue to expect the RBNZ will leave the OCR on hold at 2.5% until March 2014. The RBNZ has recently released a public consultation on macro-prudential tools. Should housing market and credit demand pressures intensify further, there is a possibility the RBNZ may look to use macro-prudential tools, such as loan-to-value ratios, over the next year."
REINZ chief executive Helen O’Sullivan, says while the residential real estate market remains active, the rate of growth in the number of transactions is slowing despite prices being near record levels.
“Supply shortages in Auckland and Christchurch are the main constraint, resulting in double digit price increases in those regions with the median days to sell from listing at around 33 days. Across the rest of the country activity is more modest which is reflected in smaller increases in regional median prices. “
“The continuing reduction in the number of days to sell between this year and last year is also indicative of more buyer pressure in markets across the country.”
The 6,632 unconditional residential sales in February, were increase of 464 sales (+7.5%) compared with the same time last year and an increase of 34.4% compared to January 2013.
O'Sullivan says, however, that the pace in the growth of the number of transactions appears to be slowing; the year on year increase in Feb 2012 over the Feb 2011 figure was 34.4%, while the increase in Feb 2013 over Feb 2012 is a far more modest 7.5%. "On a seasonally adjusted basis February’s sales were in line with what would be expected at this time of the year," she says.
All but two regions recorded increases in sales volume compared to February last year, with Northland recording an increase of 28.7%, followed by Auckland with 15.6% and Wellington with 11.7%. All regions recorded an increase in sales volume in February compared to January, with Central Otago Lakes recording an increase of 55.4%, followed by Southland with 51.2% and Wellington with 41.6%.
The number of transactions remains well below historic levels, with the number of transactions in February 2013 just 71% of the total recorded in Feb 2007 of 9357.
The time taken to sell, a key indicator of the heat or otherwise in the market, continued to come down.
Houses on average took two days fewer to sell in February 2013, following the usual seasonal pattern, compared to January 2013, improving from 41 days in January to 39 days in February.
Compared with February 2012, the number of days to sell improved by seven days.
O'Sullivan says all regions, with the exception of Northland, Nelson/Marlborough and Southland, saw an improvement in the number of days to sell between February 2012 and February 2013. For the month of February, Canterbury/Westland recorded the shortest days to sell at 30 days, followed by Otago with 32 days, and Auckland with 33 days. Northland recorded the longest number of days to sell at 86 days, followed by Waikato/Bay of Plenty with 63 days and Hawkes Bay with 57 days. Over the past 10 years the median days to sell for the month of February has averaged 43 days across New Zealand.
The REINZ Stratified Housing Price Index, which adjusts for some of the variations in mix that can impact on the median price, is 8.1% higher than February 2012 and increased 1.6% compared with January. The Christchurch Stratified Housing Price Index is up 12.3% compared to February 2012, while the Auckland Stratified Housing price Index is up 11.6%.
O'Sullivan says that the Auckland market continues to lead the country "with an uplift in listings during February being almost entirely absorbed by sales during the month, with demand coming from all parts of the market".
Within the Auckland region there continue to be big differences. Auckland city prices sharply rebounded after slumping in January and were up some 18% on the previous month with a median price of NZ$596,500. Auckland city prices are up 13% compared with a year ago.
On an annual basis the biggest rise, of 20%, was recorded by Waitakere City, up to a median price of NZ$450,250, although that was actually down on January's figure. The most expensive houses are those in North Shore City, with the median hitting NZ$650,000, which is 14.6% higher than a year ago. Most affordable houses are those in outer Auckland, with a median price of NZ$440,000, which is up 7.3% on a year ago.
127 Comments
And in related news, Len
And in related news, Len Brown admits his 15,000 ready to go sections are actually only 2,000 ready to go sections. Annual demand needed to meet Auckland's growth is 13,000. Plus another 100,000 to backfill the undersupply over the last 10 years.
Severely reduce supply then give people cheap, plentiful credit with which to bid up prices for the remaining stock and you've got yourself a big bubbly mess.
Len and David are like the
Len and David are like the evil twin; Len initially said we got 15000 sections ready to go, inline with David's statement that we can build decent 3br house for 300K - then both made a fool of themselves.. truth is never trust a politician regardless of red, blue or green..
They open the gates, turn
They open the gates, turn the tap on knowing there will be a squeeze on supply. Who do they work for...definitely not me....why vote...bugger this...I’m off, somewhere....maybe to the bottom of the barrel...I guess that’s where I belong...at least there’s some shade down here.
They open the gates, turn
They open the gates, turn the tap on knowing there will be a squeeze on supply. Who do they work for...definitely not me....why vote...bugger this...I’m off, somewhere....maybe to the bottom of the barrel...I guess that’s where I belong...at least there’s some shade down here.
Auckland City 18% increase in
Auckland City 18% increase in a month.
The Gravy train is hitting Shanghai bullet speeds.
TOOT TOOT!
Crash
Crash
Just bad journalism; figure
Just bad journalism; figure needs to be considered in line with the drop in values in Auckland City in January. Better to look at the seasonally adjusted figures.
For the last 4 years being a
For the last 4 years being a landlord was a bad name. When I mention that I have 12 properties people looked at me with pity in their eyes. Now that property has come back strongly, when I mention 12 properties they now look with wonderment in their eyes and say wow 12 opportunities. The multiplication factor is amazing. When one property goes up by $50k it seems like a rather small number but when you multiple by 12...wow, a massive $600k capital profit in the last 12 months. Of course it is just paper profits. But the rents have also been pushing forward, now that is real money.
Well done. Why bother messing
Well done.
Why bother messing around reading a dodgy prospectus for MRP and applying for a measy few thousand shares unleveraged.
Property as the current superior asset class has spoken.
(Residential and Industrial)
....can I have one,
....can I have one, pleassseee, i'll be your best friend.
As Muriel would say "you are
As Muriel would say "you are terrible Kimy.. "
when the revolution comes will you be saved???
As long as you realise that
As long as you realise that your profits and rental income are unearned. Do you ever ask youself where those profits come from? ie: is it a closed loop, so my profit is someone elses loss? Do you ever consider that your behaviour is antisocial, criminal in intent even? You make yourself rich, but at the same time make a the society you want to be rich in poorer?
ummm.. isn't the shares
ummm.. isn't the shares market and everything else is the same? It's zero sum game world we are living.. There is only so much money rattling in the pot.. your gain is someone else loses!
One test of a mans character
One test of a mans character is what he does when it is pointed out his actions are detrimental to others. Some will of course try to defect attention by pointing out others are doing the same thing, but that doesn't minimise their guilt whatsoever.
But the real stupid thing about all this, is that in the winner takes all scenario everyone eventually loses.
Rito Karl. When you have
Rito Karl.
When you have finished toiling heroically in the fields - dob us in to the KGB and send us to the gulag.
SK.
The difference between you
The difference between you and Karl is that at least he put some serious thought into what was going on. Other than that I don't get your point, and it is clear you don't either. What part of unearned don't you understand?
Explain the unearned thing if
Explain the unearned thing if you must - seems that quite a few people here think its silly.
But please go ahead.
How are they unearned
How are they unearned scarfie?
Do mean that no risk or capital outlay is required - unlike labourers who have such things taken care of them by their employers?
Or perhaps you mean that, like labourers and those who sell their skills it doesn't represent problems with maintenance of the asset, damage by third parties, free cleaning and repairs, and exposure to government and council legislation? That somehow because such risks to your earning ability don't exist for labour sellers, they can't exist for property owners.
Stop bothering the grownups with your nonsense scarfie.
Your nonsense sorry Mist.
Your nonsense sorry Mist. Like Chairman eludes to above diverting attention away from the behaviour doesn't make it right. The undertaking of risk in no way mitigates or justifies the unearned income. Making a loss for those who do doesn't either.
Scarfie, so according to yor
Scarfie, so according to yor definition.. our Shares/Capital market is evil also?
North Korea is awaiting for your return.
Nope, like SK you don't get
Nope, like SK you don't get it either. A shame I had hope that you did for a moment. Unearned income is just as prolific in centralised economies, perhaps worse.
The best example I know of the principle actually comes from the bible at Isiah 65:21-22
21 And they shall build houses, and inhabit them; and they shall plant vineyards, and eat the fruit of them.
22 They shall not build, and another inhabit; they shall not plant, and another eat: for as the days of a tree are the days of my people, and mine elect shall long enjoy the work of their hands.
Ok there goes the fundamental
Ok there goes the fundamental basis of our farms, no more planting, and no more farming because the bible says so????
Sound like Destiny Church
Sound like Destiny Church sermon.. Are you Brian Tamaki's fan club member?
Come on Chairman that is
Come on Chairman that is totally fallacious, you can do better than that. It is only an ancient wisdom, don't get fixated that it is from the bible.
And who wrote the bible? It
And who wrote the bible? It didn't fall out from the sky!
And what if I am an atheist???
(PS..you probably read about the recent news coming out of The Vatican - it's the most non-corrupted organisation.. yeah right!)
You're not the sharpest tool
You're not the sharpest tool in the shed are you scarfie. Do you really think those words of Isiah were painstakingly preserved by priests and scribes because he was talking about real estate and viticulture.
I suppose you think that when Bob Dylan sang "Once I had mountains in the palm of my hand.........rivers I ran through every day....." he was talking about geography.
Not the sharpest one, but definately a tool.
Ha! Very Good!
Ha! Very Good!
Heck I was using that as an
Heck I was using that as an example of the principle highlighting the immorality of unearned income VF so I don't know what exactly you managed to get on your high horse over. Seem it might actually be you that is suffereing a cognitive deficiency, even your one dimensional mate SK that doesn't have a clue what this discussion is about.
Scarfie, I understand, it's
Scarfie, I understand, it's better for our economy to start export based businesses, any profit from overseas is an injection into our economy. Whilst borrowed money from overseas (Aus) banks tied up in housing is unproductive and a withdrawl from our economy, yawn.
All the rest of you, I understand you too, Auckland housing is booming and it's gunna keep booming for years to come. There's a lot of money to be made and you can't personally do anything to stop the house price inflation so why not jump in.
Scarfie, your morals may just get you left behind.
It depends on what sort of
It depends on what sort of society you want to be rich in Happy. The do it because everyone else is position isn't a sustainable long term solution and is morally indefensible. It is a wealth transfer and sooner or later it reverses, think about how that might happen.
PI's are just middle men anyway, it works for those at top to use them for now. They play a part in the wealth transfer and when they have outlived their usefulness they will be thrown to the wolves like everyone else. Where would that leave you Happy? When you have pissed off those you have extorted from but then big boys cut you loose and don't want anything to do with you anymore?
Hypertiger has a very good way of laying down the rules.
Blow the SOE
Blow the SOE share rubbish..we're into property...no tax and woopeee cos all the banks are behind us with endless cheap easy credit...and mobs of Asians loaded with booty to buy buy buy.
Amazing people think this
Amazing people think this way...
Property investors work hard to get a deposit, work hard to find the right property, work hard to find tenants, work hard to keep the property in good condition.
They provide a home to families who choose to rent.
They provide work for lawyers, accountants, buliders, lawnmowers, gardeners, painters, plumbers, electricians.
Being a property investor is not easy, it is a lot of hard work in the beginning, in the expectation that in the long term your hard work will provide an income and lifestyle in retirement that ensures you do not have to rely on state handouts to survive.
I am a property investor, I have worked extremely hard for decades to get where I am.
Any gains I make are certainly earned.
Kimy Congrats on 12 properties, thanks for providing homes and jobs for so many people.
Bollocks you earned it.
Bollocks you earned it. Interest (your fictitious capital gain) always creates a redistribution of wealth, you are stealing off others so don't be deluded. The proceeds from interest are unearned income. Interest is always destructive. Interest is a claim on the future, can you be sure the future will deliver? It is actually your kids and grand kids you are stealing off.
Can you not see that money was meant to facilitate trade, not become a means of income in its own right? Aristotle first mentioned it in Book One Part X. Ancient wisdom my friend, from one of the western worlds founding fathers, are you going to deny him?
Like I say above, you take the riches but make society poorer.
Scarfie - please preach to
Scarfie - please preach to the borrowers, they need to contain their desires to consume today that which they can possibly only afford tomorrow.
No problem with you
No problem with you chastising the ill disciplined, greedy or covetous Stehpen. But how do you reconcile your comments when the money supply is debt. I am thinking back specifically to a year or so ago when I looked at M3 vs E3. Perhaps I am mistaken in my interpretation and would respect your opinion on that one. I worked out back then that 83% of that debt was against residential mortgages.
Edit: I don't have debt.
I do not feel a need to
I do not feel a need to reconcile the fact that all the so-called deposts are others debt and what one would traditionally consider safe savings are not.
Don't forget that most
Don't forget that most business people borrow against their residential property to fund their business operations because the interest rate on commercial loans can still be as high as 10% when residential mortgage rates are around the 5% mark. The residential mortgage is skewed badly.
Do you have some data or
Do you have some data or statistics there to support your statement?
Exactly right, the
Exactly right, the statisticians have not separated out the data and the general public and the government and the Reserve Bank do not have the correct data and have for decades made bad calls because the data is wrongly skewed.
Not sure disussions with
Not sure disussions with trolls are entirely time well spent ...
I spent years in business working up to 80 hours a week, and rather than spend on consumption, I 'traded' this money I made for property. I think I worked extremely hard, and 'earnt it'
I trade a fair amount of my tenants income, for a fair service, and am proud to provide accomodation for my tenants. Property Investment is my job, and I work hard at it. If you work hard at something, how can you not have earnt the result?
Off course my aim is to increase my and my families wealth. I want to be financially secure, and independant, and not rely on the state or anyone else to be burdened by my inadequacy to provide for myself in the future and retirement. I assume your aim to is reduce your financial situaation?
Must be challenging in your world where you must be morally bound to refuse to invest in anything that has any chance of appreciating in value. A great moral stance, but can't help but think you are the one punishing your kids and grandkids not me.
By your argument, noone can recieve any income for doing anything as anything you recieve would be denying someone else. You cant eat without denying someone else. Anything you do, have or will have will deny someone else in your closed model.
Not sure what relevance Aristotle has to your argument people who own property are criminals. Aristotle was in fact strongly in FAVOUR of private property.
"Aristotle wove together his economic and moral theories by providing the brilliant insight that only private property furnishes people with the opportunity to act morally, e.g. to practice the virtues of benevolence and philanthropy."
Despite Aristotle extolling the virtues of property ownership, the guy died 2300 years ago. Things have moved on. Maybe you should too.
Invest in property, shares, manufacturing, retail, service, hospitality or don't. Work your ass off in a job till you are 70, or go on the dole, or don't.
I'm not telling you how to live your life, wonder what gives you the right to stigmatise propery owners.
Persecution against race = rasism.
Persecution against sex = sexism.
Persecution against property investors = you the man!
Aristotle wove together his
Aristotle wove together his economic and moral theories by providing the brilliant insight that only private property furnishes people with the opportunity to act morally, e.g. to practice the virtues of benevolence and philanthropy.
Yes you are so correct - the time when the majority of NZers owned their own family homes, a few decades back, afforded New Zealand with an egalitarian society that many are saddened no longer exists.
Reepr a troll is someone that
Reepr a troll is someone that constantly uses fallacious tactics to disrupt the flow of a thread, which is a category you diatribe falls directly into. Your arguments are unsupportable and don't stand up to critical analysis, which as an apparent linear thinking looks to be your distinct weakness.
For instance you take aristotle out of context, bastardise him in fact. He is talking about private property ownership, which by being a landlord you deprive your tennants the opportunity of. Destructive and antisocial behaviour as I highlighted before.
Define work? Generally with work you expect an output from the application of energy expended to do that work. What exactly do you produce with your property investment? Nothing at all. So unless you are actually producing something your are actually sponging of the back of people who do. How much energy do you consume on a daily basis vs how much you produce? Where does the energy you consume come from? A non renewable source such as oil by any chance? Stealing your kids future as I say. So when you really analyse it your net energy balance is negative, which means you don't acutally work at all.
You talk about appreciating value but don't seem to understand what exactly appreciating is. Appreciation is when you add something to make it better. Sitting back on your duff and relying on a capital gain is not adding value, it actually subtracts from it. So what exactly are your mythical capital gains, ever really thought about it? I bet not, you are just happy to sit back and take the profits with no real consideration of who the counterparty is, or who you might be harming by your actions.
In short Reepr, unless you make or grow something then you are a parasite on those that do.
hmmm... I have reread my
hmmm... I have reread my posts, and not sure where I said I am sitting on my duff relying on a capital gain.
My argument is I have earnt my position in response to you saying property investors have not earnt their income.
I think I have posted maybe 3 times on interest.co.nz. Would not say that means I "constantly uses fallacious tactics to disrupt the flow of a thread".
You throw 2000 year old arguments around and talk in generalisations and persecute an entire sector of society who in general work hard, and provide service and jobs for many people.
If someone disagrees with you, you insult and quote irrelevancies.
Lol @ calling me the troll.
Quote "invest in anything
Quote "invest in anything that has any chance of appreciating in value"
Your entire post relied upon fallacies and you have done it again. 1. Denying the quote above. 2. Implying your minimal posts means you don't use fallcies. 3. Implying that because knowledge is 2000 years old that it is of no value. 4. Don't back up your arguments with evidence and belittle the evidence presented to you.
Two people have slammed your misrepresentation of aristotle, keep on trying to weasel out of that one eh?
Edit: Not sure where I insulted you apart from calling you a linear thinker. I take that back but would love for you to prove me wrong.
There is a difference in
There is a difference in investing in something that has a chance of appreciating in value, and investing in something for its appreciating value.
I do not invest in property for its appreciating value. That does not stop it appreciating.
Just because something is 2000 years old does not mean it is of value.
My point with the aristotle quote is that you can make an argument out of anything.. does not make it a valid arguemnt.
I guess the insult was in saying I have not earnt my financial security.
I welcome robust discussion, but tarring everyone with the same brush does not seem constructive to me.
Believe it or not I enjoy differing points of view... an your point of saying capital gains is not productive is valid. That does not automatically imply however that because I get capital gains I am unproductive in society.
reepr... love your comments
reepr... love your comments on this thread.
Well done investing into property. Any gains you make are earned and yours alone.
Stick with it and remember... the great majority of bloggers on this website are employees. They don't own their own busineses or much in the way of assets.
You have done better than they will ever do.
David, can we get this
David, can we get this scarfie guy blocked?
All his comments I've read for the last few days are straight out personal attacks, and most, like the one above, have no resemblence to what the previous poster had said.
The usual unpleasant Scarfie
The usual unpleasant Scarfie comment above.
scarife, a Troll is a person
scarife, a Troll is a person who posts for their personal enjoyment of harrassing and irriating others.
Fallacious tactics, and disrupting thread flows...and constant spurious comments that require "meta-discussion" eg like bringing up trolling, especially when getting the meaning of "trolling" wrong are all examples of a subset of Trolling behaviour.
Other common tactic is misquoting, accusations and adhomein attacks.
Scarfie isnt a troll, he's
Scarfie isnt a troll, he's pointing out the emperor has no clothes to the little lemmings who dont want to hear it in case they fill their underwear or it scares the mugs they want to sell to away. Its simple, selling a house at a value beyond what it returns except for a capital gain or tax dodge is gambling there is a bigger fool out there to palm it off to. The other negative is the likes of scarfie and myself as tax payers get to pay for teh mess when it implodes aka Ireland...thats p*ssing us off.
Hopefully those with a more balanced attitude will note that there is real risk of a large neg impact on this property gambling. Think tulips or southsea shipping or US property market to 2007.
regards
"You talk about appreciating
"You talk about appreciating value but don't seem to understand what exactly appreciating is. Appreciation is when you add something to make it better."
Incorrect scarfie. That's "added/adding value".
Appreciation is the opposite of depreciation.
A depreciating asset is one that value or lifespan is reducing over time. Thus a new car bought for $100 is worth $50, when taken off the lot, and as it's used the wear and tear, and the appearance of more modern cars, means year by year it's real value diminishes.
Whereas buying an appreciating asset, such as a business that is well positioned in the market, with solid demand for it's product or service. Each year, it's staff gain skills, it's market reach should extend, word of it's product or service spreads into the community, it's advertising becomes more culturally accepted and builds on itself, and to be short and use an overused buzzword, it's brand becomes more established, it's customer base and ability to provide grows. Thus year after year the business as an asset (if maintained well) will gain, rather than lose value. It is not the added value that causes this, although it helps; it is the fact that it returns continual or increasing value over time.
In some cases like property, art or antiques, the asset/liability itself does not change but the market around it does. In the case of a house, it could be a new supermarket, better internet, a closer bus route, change in fashionable part of town, or just population increase. These all increase demand, demand dictates value. So in this case the property stays at one value, and the rest of the world inflates around it, as prices and wages rise, so does the number of fiat dollars available to purchase the property. The property itself hasn't changed much in respect to the market, but the whole market has failed to drop as fast as everything else. Thus it is seen to appreciate. Nothing to do with any added value.
Aristotle is so right,
Aristotle is so right, otherwise you end up in the "red envelope" crew, or the "reporters of neighbours" that happened under Communist USSR.
Without private property, there is no personal ownership. Without personal ownership, no personal property. how can anyone personally give anything away (even their time) if they never possessed anything to start with. If you own nothing, how can you give it?
With the non-private ownership, people give away the fruits of the labour of others. The "gifters" don't own the property, they never invested anything into it, but still they take the rights of ownership over its use. To take something that isn't yours, without agreement; is theft. Stealing other peoples' property can hardly be any basis for any form of morality or virtue and are guaranteed over time to create a culture in which profit by theft and immorallity are the only advantages. (which is why *I* say a compulsory 'tax' donation level of 10% is reasonable, with possibly another compulsory 10% to donated to where the earner choses, is the ceiling on taxation. Anything higher is misappropriation via threat of force, and amounts to theft, something which will be demeritous to the community and will only get worse the longer it is practiced. (it slows the very bio-culture which supports the community and the tax base - people will look for more handout services, and chase money profits rather than have the leisure resources to build a better civilisation; the poor will feel it first as always and they will be the first to have their part of society degrade. And with the degradation of their surroundings so with their hope and sense of morality and responsibility and commitment.)
Gains in property value
Gains in property value though are not really earned, ie they happen whether you own a house, or if someone elseowns it...now the income, yes fair enough.
regards
Buy a house, test your
Buy a house, test your theory, post the results.
You are wrong.
I have tested your theory personally. The gain in value is very much earned.
Science is when a proposal is set out and parameters asigned, a set of hypothetical results predicted. The practical experiment is done, the data gathered, and then tested against the predictions. Checks are done to look at accuracy and technique. Controls are implimented to reduce internal issues.
BS is when you ignore the science, refuse to test, and still keep your pet theory in face of mounting evidence.
Gains in property value are earned.
If you disbelieve, then do the experiment yourself.... and if you can't raise the initial capital or don't wish to take on the work or risk involved :) then consider my point scientifically proven (and stop with the BS! it clogs our waterways AND our forums!).
Property is just a means by
Property is just a means by which your average New Zealander is trying to save for his retirement. It is very clear our kiwi saver fund is not going to be adequate for a decent retirement plan. And the risk of a Ross Management Investment fund taking your hard earned money so that he can splurge and enjoy your hard earned money is just sickening.This is something that an average person can do for his/her retirement. We are not all super bright and have the skills to set up a business and run it and be successful. And a few thousand shares in MRP is not going to fund a retirement plan.
However property is only a
However property is only a gain if you can find someone to sell it to and its only realised when its actually sold.
regards
No steven, thats not
No steven, thats not right.
There are several other options, but that's the difference between sitting on the outside making theories, and actually doing the business.
Here's one example, an example I don't like but proves the point.
Reverse mortgages as a form of retirement. The sale isn't your problem, and the realisation is well before the sale.
Very easy to refinance based
Very easy to refinance based on the capital gain value to realise the gain before the property is sold. Also very dangerous to refinance and spend on consumption, tv's and cars as you rightly point out, the gain only paper until the property is sold.
One of the main problems I faced in business is it is VERY hard to borrow to invest in the business, so I actually started in property to have an asset the bank would lend against to grow the business.
Very few people in business would not also invest in property I suspect. No data to back up that assumption.
Agreed re: financing business
Agreed re: financing business investment via property. Banks love property as security.
Just look at the number of
Just look at the number of business people who lose their homes to Directors Guarantees, and the occasion rash of 4 - 20 rentals in one area that go undere the hammer due to business issues or a business couple splitting up or when a stable business person/couple decide to leave town/country.
I know many sharemilkers and dairy farmers get their jump ahead by selling the family home and sometimes a rental on top. Often they're inheritances from Great Grandparents or Grand Aunts/Uncles. Sometimes the rolling forward of capital/equity is the reason they do this but more often than not the reason for selling is maintenance or risk of damage from tenants (including having to deal with Tenancy Tribunal actions)
Personally don't mind listing a few of the less described caveats on this site (to balance out the "You'll always WIN" from the spruikers wanting to selling to the hopeful, but don't really want to give many of the secrets away to an audience that would rather sit and bitch and claim expertise - I want to give such secrets and techniques to people who actually want to invest in themselves and their community and take responsibility into their own hands.
And putting real information up here, in the public eye, is more likely to see the IRD and government practice more rorts to wreck such peoples' lives, just in case they get to be healthy poppies and able to step out of line....
Well one thing at least is
Well one thing at least is clearer from Kimy's revelation re: property - why it is he/she is continuously whining about the need for NZ interest rates to fall further.
I have learned that high
I have learned that high interest rates does not help the NZ economy. I would prefer high variable compulsory superannuation. I am whining because it needs to be heard, say it often enough and perhaps it gets through to to some very thick skulls with very little brain matter.
You are whining out of naked
You are whining out of naked self interest.
Has it ever entered your superior cranium what low interest rates do to those dependent on term deposits and other fixed interest vehicles for income ie savers and a great many retirees?
No, I thought not.
Well they should not have it
Well they should not have it in term deposits cause there is no capital growth. it should go into a properly managed fund for a professional fund manager to manage, or it should go into property providing a roof over someone head. You do have the choice of accepting below market rents if you are feeling charitable.
Chuckle, yeah right. Yes all
Chuckle, yeah right. Yes all those useless term deposits propping up those useless banks that loan all that money to those useless property investors. Oh hang on a minute.....
Actually, it is the japanese
Actually, it is the japanese housewives and the 1 million non resident New Zealanders that have left their cash deposits here in New Zealand banks, earning high tax free interest, under the Approved Issuer Levy scheme in which they are paying 2% levy on the interest earned on their deposits and bloating out our Foreign Debt and providing our cashflush banks a reason to loan to property investors.
They only do that because we
They only do that because we keep selling borrowed NZD to purchase yen and whatever other currency for car purchases etc beyond the level of foreign currency export receipts. What else are foreigners to do when they are in receipt of excess NZD sales?
learn how the banking system
learn how the banking system works Andyh, because you've actually got the mechanism incorrect.
Not strictly true all you are
Not strictly true all you are doing is trying to split a gain into arguable components and then dismiss deposits because its doesnt have your arbitary one. By the same token, gold is therefore a fantastic buy.
If the interest / return is above inflation then that reflects a gain on your investment capital thats it really.
NB A term deposit is about the closest thing to a zero risk return.
Managed funds are also IMHO huge gambles of an ever incraesing market run by what I call wide boys, ie the same cowboys and ponzi marketeers who were in finance companies not that long ago.
regards
Get over it Steven. Try
Get over it Steven. Try buying a couple of houses and seeing how it goes. It doesn't matter if the gain you make is capital gain or steady income. You will find you will really work for it. Hard bloody yakka at all levels. Intellectual and Physical. And in the end you might make no gain - capital or steady income. Part of that work for potentially nothing will include waking at night with a cold clamp of worry.
There are people making money because they have decided to wear the pain to get the gain. Fair enough in my view. But many more who don't see the pain is worth it. And fair enough also.
If you want to toss the word 'parasite' about -- how about talking about those Housing Corporation tenants who create tens of thousands of Intentional damage. And who have no liability for it. And commonly are repeat offenders. Far more deserving of your scorn.
Not for me to get over. My
Not for me to get over. My point was and is that there is a difference between working at being a professional PI and seeing a positive income and if you improve the property a return on that v speculation on the price rising no matter what you do or dont and claiming it as a tax loss. I see nothing wrong with working for any and seeing a gain, which is my point.
I fail to see that bad HC tenants are anything to do with this discusion.
regards
....andyh... you're kidding
....andyh... you're kidding right?
Seriously, you must know where the funds from term deposits go....
They form the lowest cost fuding for the banking superstructure to buy debt security with. The money paid to the term deposits is what is left behind after the money is lent out to folks like kimy, then deduct the debt security interest cost, then the banks operating and dividend costs, and the drab bit left over is returned to the term depositor.
BUT...when the term depositor wishes to purchase anything with their little leftover bits (which remind me of the bits of leftover soap that I mash together to make a "freebie bar" when I've got enough).
That term deposit has to pay shelf price. Shelf price includes the high interest rates for everyone along the chain that takes a cut, and they don't take the drab bits!
Low interest rates means a little goes a long way.
High interest rates means it appears the term depositor gets income, but in reality the Time Cost of Money, through inflation, has reduced the value of what they get to very little!
I am intriqued about your
I am intriqued about your concern for the NZ economy. Tell me how does property investment help it? In fact take that further, how does property investment not do it serious harm?
My concern is high interest
My concern is high interest rates. It does not help New Zealand business or New Zealanders in general. I believe variable compulsory superannuation would achieve the same result by dampening consumption but would be wealth creation for the individual rather wealth destruction of high interest rates. Property investment as part of my retirement goals is a investment choice after giving due consideration to my age and what would best deliver a passive income that I could live on and perhaps look forward to as I approach retirement. That investment that produces a rental income allows me to spend in the local economy and benefits New Zealand as I would be independent of state assistance and public welfare.
Reading what you say what you
Reading what you say what you actually mean is what would be best for you, not for the local economy. It is all about your retirement and your consumption, totally self centred so don't give us your crap about being good for New Zealand. Nothing you have outlined would help the local economy at all, nothing to help something be manufactured or grown that that it could be traded for an imported good. Your plans is actually to be a parasite on other New Zealanders who do actually produce something tradeable.
Lots of name calling. Sure
Lots of name calling. Sure sounds like you may be headed towards Auckland as the weather continues to dry out. I will be happy to lay out the tent in the backyard for you to stay. Sorry my rentals are full of people. I actually took the time out of my rather busy day to write to help people make the right decisions for New Zealand because I care. Low Interest rates and variable compulsory superannuation. Free solar power for the people.
Just a line to let you know
Just a line to let you know some of us do appreciate your contribution.
If you don't want facts
If you don't want facts scarfie, don't ask for them.
You didn't get "what is best for kimy", you just got given a case study to work with. Why do you not understand that??
Or is it that you need to hide in theories as whatifs and philosophies that aren't ever wrong because they've never been put to the test.
So scarfie, ignoring the data put in front of you, and then just attacking the person from a completely unsupported point of view is hardly anything good in any form (economic, personal, or for your fellow debaters.) Sadly your actual philsophy is equally void of merit.
Why don't you tell everyone how the average New Zealand is going to build equity to reduce costs for retirement? You can explain how all those NZers unable to afford the price of a house or who prefer to stay mobile, can live/raise families in houses instead of tents. You would also explain why business investment in property is worse than the same capital invested into any other activity that provides for real human Need.
So worried about high
So worried about high interest rates, (high being 5, 6 or 7% I presume) but you fail to note high land prices, - you need land to establish premises, if this is forced into bubble pricing and rents, how competitive do you think your business will be?
This is all part of the folly.
Also you are assuming a future passive income stream, however have you factored in that rent must be funded out of income, unlike property prices that can be financed by debt. Eventually for a given property price the rental yield will fall but one factor that won't be falling as a percentage of property price, council rates.
5-7 is low. 12-27% is high.
5-7 is low. 12-27% is high. My first property was bought at 16%
Scarfie you are wasting your
Scarfie you are wasting your time if you expect property bulls to show any interest in the common good. Its obvious that most of them don't give jack about the common good, its just 'me me me'
Yeah I know Matt, but
Yeah I know Matt, but sometimes you have to try. I had nothing better on tonight anyway :-) Mate we are getting Aussie weather in your hometown! On tankwater so have had to buy it in because it is so dry.
Did the guy who sold you the
Did the guy who sold you the water make any profit on it or did he resell to you at cost ?
Well, water costs nothing to
Well, water costs nothing to find in a river, so costs of pumping and the truck should be factored out as well, as the operational cost is water (zero), fuel, labour.
I suspect the truck that
I suspect the truck that delivered the water ran on fossil fuels... disgraceful. Destroying the planet for his kids and grandkids.
Surely if scarfie is trucking in water he is leaving less for the rest of us.
Shameful to steal the essentials off the kids, elderly and primary producers of NZ.
Aristotle once said never use trucks to take a common resource for ones own good. Or words to that effect.
The bible also mentions water somewhere.
Does he not understand the atacama desert has seen no water for over 100 years?
Don't know how resource leeches like him live with themselves. Does he not realise he is stealing from society.
p.s.
Greenland is losing ice mass... Scarfie is trucking in water...coincidence. You decide.
I doubt you are correct about
I doubt you are correct about Aristotle, but it is true that he never stated that trucks should be used for taking water to private citizens like scarfie.
Socrates was pretty good.
Socrates was pretty good. But, not as good as Pele.
They both walked on water
They both walked on water
Common good? lets hear what
Common good? lets hear what you have done that has benefitted New Zealand? Thought you are Matt of Brisbane now?
Ah, the property
Ah, the property bubble.
Let's play the broken record yet again.William Rees-Mogg (former editor of the Times) had this to say about a similar bubbular situation in the UK, in 2007.
"1. license housebuilding, so that no one could build a new house without a licence, or even rebuild an old house or a redundant barn.
2. encourage developers to maintain large land banks in order to benefit from rising prices.
3. leak out new permissions only after long periods of delay.
4. combine this with an unlimited flow of mortgage credit and relatively low rates of interest.
If you restrict supply below the market clearing level and increase funding, you will inevitably create a bubble and you will lock people out of the market."
#1 - LBP's up the wazoo, check.
#2 - no CG on the MUL Multiple, and plenty of land banking. Check.
#3 - if the Clueless (Christchurch) City Council guide to new housing is anything to go by, then ya needs a Pre-Consent-meeting series (for a Modest Fee, naturally) just to make sure you're using the right coloured pen for each section, and have a team of experienced engineers, architects, quantity surveyors, building detailers and water diviners handy, to answer the CCC's endless string of stoopid questions. I may be wrong about the architects. And as for resource consents - think decades, not years. Check.
#4 Check
We appear to have the trifecta. Or a Straight Flush.
And we are mistaking this bubble for Wealth Enhancement????
If this board could be taken
If this board could be taken as a snapshot for the rest of NZ, then you would have to admit there is simmering rage. Maybe somebody can identify how this can be good for a supposedly egalitarian and harmonious country.
Do we want to end up with a society of 1% living inside their guarded compounds versus the angry lynch mob? Doesn't sound very nice to me.
What the more 'in-your-face' PI types who frequent this board seem not to understand is that they come across as selfish pricks.
Quite simply, they are taxing the rest of us.
As mentioned in a comment yesterday, their 'game' is not unlike young girls laughing because they cynically have multiple kids to different partners, in order to qualify for govt largess. OK, it is not illegal. But it is also not right, and so could be regarded as loathesome.
PS: There is a space for sale in Takapuna which has been retail death for ALL who have tried their luck. A naive eastern european immigrant signed personal guarantee for 40k/year as rent to owner year or so back. She has sublet to some Asians, who are also now trying to get out. This will go on and on. Using a 5% yield, it is being offered for sale at 800K. As a local who has watched this space I would suggest it is intrinsically worth about 300-350, screaming tops. Nobody who knows the place in their right mind would pay 800k. My point here is; AKL houses are being sold at or around the same 5% yield valuation currently...
Scarfie & idlebumski, Just
Scarfie & idlebumski,
Just because it's not illegal, doesn’t mean you should do it. I bought all the books, went to all the seminars, and had plenty of opportunities and the capital to invest in property. In the end though, I didn't go that route. Why?
Stepping on other people to get wealthy myself? Just not the way I was brought up. And it's not just me - a large number of my friends feel the same way.
Read some of the comments from the PI's on this site - it's a real education - the more people they can screw over the better.
As soon as I hear someone is a PI, it's very hard for me to consider them as a person that I want to be associated with.
Call it PI'ism if you like..
Been there to Notch, when I
Been there to Notch, when I was young and stupid enough not to question. Something didn't quite seem right so I am glad I never followed through. Not to say I haven't been a landlord though, I have been on a modest scale that was sort of neutral because I in turn rented.
I agree with your sentiments though and morality is certainly in a big vacuum on this site. There are a few proponents but we lost one of the greats a week ago with the late and great Walter Kunst.
Maybe the problem is that
Maybe the problem is that there are people out in virtually all aspects in life that ARE out to step on people and screw over others for personal gain.
In 20 years of owning my own business I have come across many of these type of people. Many more than I have ever come across in the PI industry.
Perhaps PI are villified not because there are more of this personality in the industry... but that these people are more highly portrayed in the media.
There certainly are PI who are in it just for the money. Certainly some of the more high profile investors push their own agenda relentlessly.
I charge below market rents for families and ensure they have a HOME to live in. I install heat pumps, insulate and attend to reapirs quickly and efficiently. My tenants are wonderful and constantly tell me they love living in my properties.
If I see a tenant with a need I fill it if at all possible. I have seen tenants with no heaters... so have gone down to the warehouse and bought them one. ( and given them it... not increased the rent etc.)
I have never sold a house, and so have never realised any capital gain.
I love the fact I provide a home to my tenants.
I give to multiple charities, and help those less fortunate to myself.
I am generous to my friends and family.
I am generous of my time in helping others.
But still I am an evil PI who doesn't deserve to be your friend.
Sorry you feel that way.
There is a I think a huge
There is a I think a huge difference between a professional PI who is in the game for an (lifetime) income and those who gamble that house prices will continue to rise and they'll profit for little work....that latter to me is all but parasitic. Imean somewhere else ther has to be a profit made for that capital gain to be realised. The parasites are IMHO going to damage the professional PI, PAYEs and our economy, alike...
regards
Reepr - beautifully
Reepr - beautifully written.
The pity about this site is that people get bagged by others when they know nothing about the morals and ethics of the people they are bagging.
PI do offer a fantastic service on the whole and as I have pointed out on this site previously Chch would have been in terrible strife if it had not been for PI as there simply would not have been available housing.
PI fill a very important need in the market.
It's just as well you didn't
It's just as well you didn't get into property notch. If you have "bought all the books and gone to the seminars" and you still don't realise that it's the owners choice about what kind of landlord they are, then that means the property world (and your respecitive prospective tenants are better without you).
Being a landlord is not about stepping on other people. A business can be run in a manner that doesn't rip off your customers, and you don't have to waste peoples day when you're selling labour.
Most of my landlords (including an MP of Dunedin) have been really decent folk, willing to go an extra mile...provided you respect their property and meet the contract that you agreed to. Likewise I try to give best service and under market rate because I know how hard it is to get ahead in NZ. However tenants have to understand...if you want cheap rent, then I don't have money to throw at the property - whats left of the rent after the bank and council and insurance companies have had their cut, is my wages. And I can only do so much with $30/week/house.
Such vehemance for the humble
Such vehemance for the humble property investor. Unbelievable. Property is a means to an end. It is one of many investment vehicles that provides for an average persons retirement. To be high and mighty and lord over the average person trying to eek out a retirement income because he lacks the skills to run his own business is totalitarian and reminiscence of dictators nationalising privately owned assets and arresting people just because they are landlords. I would have thought that in todays liberal environment the humble landlord would have a place in society. Obvious we have a bunch of commies which would hark back to the dark days of state ownership and no one owns property. Sure no one would then own property, no one pays rent and we get back to communal living. hahahah funny people.
600k to you in a
600k to you in a year... Think of all our pensioners who's income is evaporating. Same for savers. Think of all the added pressure we suffer due to higher than necessary costs, translating ultimately to children going hungry, cold, dental neglect, etc.
Typically when there is shortage in civilised society, hoarding is frowned upon, or outright illegal. Why? Because it hurts people.
That this is encouraged, is just off.
Until it changes though you can do it and are entitled to seek profit.
All I would sugest is that you not rub it in other people's faces unless deep down you want out.
Hey I am sorry you missed out
Hey I am sorry you missed out and feel such bitterness but dont worry, the wonderful thing about investing in property is that it keeps going up driven up by continuos population growth. You still can invest. It is never too late.
The other bonus with
The other bonus with property, is that if your equity ratio is reasonable that in a population shrinkage situation then it tends to increase lifestyle (ie child get a room to themselves and spare rooms for hobbies and guest are affordable). For those with commercial or retail related buildings it is a good time to retire that investment or to reinvest in modern upgrades (which are seldom favourable ideas when one has tenants or a waiting list!)
if hoarding is frowned on (by
if hoarding is frowned on (by whom?) during times of shortage, then why don't the same people consider the virtue of prudence and forethought in times of not-shortage, including planning and family/resource management.
It strikes me that those who frown on hoarders are the same that could never be bothered preparing. Thus I frown at them and say "tough shit".
"Tough shit" huh? Is that
"Tough shit" huh?
Is that what you would say to any farmer in the North Island right now? If you were farmer and I was hoarding water, for profit, maybe even a non-taxable profit, and I was rubbing it in your face while declaring I provide a sevice to the economy, would you be interested in high-fiving me? Doubtful.
It is frowned upon by those who it hurts, quite naturally.
If you had a dam, and were
If you had a dam, and were hoarding water during a drought, water that you got for nothing, sure.
But if you hoard water in the winter when it is plentiful.... when there is a drought...are you still the bad guy?
Trying to play the victim
Trying to play the victim now, that is a laugh.
Read the thread Kimy, quite clear comments above about private property ownership so your comments are quite disingenuous.
some as just sore losers..
some as just sore losers..
.
.
how is running your own
how is running your own business got anything to do with retirement?
Posted on … Cantabrians UNITE
Posted on … Cantabrians UNITE facebook
Steve Doughty of the UK Daily Mail reports … (BRITISH) PLANNERS CLEAR WAY FOR BUILDING BOOM …
… Liberal new laws allow thousands of new homes to be built …
http://www.dailymail.co.uk/news/article-2291908/Planners-clear-way-building-boom-Liberal-new-laws-allow-thousands-new-homes-built.html
· Number planning permissions granted has gone up by two-thirds since 2011
· More than 45,000 homes won planning permission last autumn
Hugh Pavletich
Posted on … Cantabrians
Posted on … Cantabrians UNITE facebook ...
THE AUCKLAND RESIDENTIAL LAND SUPPLY FIASCO …
Has anyone told Mayor Len Brown, that price is the only true measure of scarcity and abundance … Where are the $50,000 starter sections on the fringes of Auckland Brown ?...
… Bernard Orsman of the New Zealand Herald reports … MAYOR DOES U-TURN ON AVAILABLE HOUSING LAND …
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10870644
Brown claimed space for 15,000 homes but now concedes just 2000 sites ready........
Hugh Pavletich
Wow 2000 sites. Multiply by
Wow 2000 sites. Multiply by average persons per household (2 point something I think), that is sufficient for maybe 6000 people/year. Or maybe Len wants Auckland to do it Samoan ghetto style (10 people per household) that will be enough for 20000 people.
Even Samoan ghetto style this is barely catering for 1% population growth based on AKL population of what, 1.5 million people. Although obviously subdividing/intensification allows for some additional increase etc
Still, time to go to the scrapyard get some shitty caravans, park them round town-Lens front lawn and get the cities homeless to live in them. Watch the vibrancy of the city flow ...
Either Len Brown is a Gold
Either Len Brown is a Gold Medal Liar or just PLAIN GOLD MEDAL STUPID.
(but with 6 media handlers, he still makes stupid statements...is it him or his PR handlers?)
Pity his South Auckland Samoan supporters....which form his voter base.....
Samoan Ghetto is a luxury soon it will be more like plywood-plastic sheeting housing for South Aucklanders...much like Motherland Samoa post typhoon....
There was NEVER 15000 lots ready for building...there are 15000 lots APPLICATION for building....somehow the difference does not compute. Given that it takes an average of 18months for approval and consent.....
Wonder where David Shearer is going to build his 10000 units of 3BR houses when he comes to power in 2014.......(And they both belongs to the Labour party.....Twiddledee and Twiddledum.....or should they be called Twiddler and Dummer???)
By the end of this decade ,
By the end of this decade , the median home price in New Zealand will be lower .
Lower than now? Or lower than
Lower than now? Or lower than $1 million in Auckland?
Lower than now , which
Lower than now , which answers your second question.
please everyone dont ask
please everyone dont ask scarfie to explain things really life is to short
Bible basher!
Bible basher!
Basically we are in a period
Basically we are in a period of boom again and this will last for 2-3 years then then bubble will burst. We will experience a repeat of 2008. Low interest rates, easy credit. The bubble is already forming and will collapse in approx 3 years time.
You mean correction until the
You mean correction until the next bull run...
Guys admire all your
Guys admire all your passion and enthusiasm but lets direct it in a positive way this is giving me a headache reading all this. I don’t think it is worth wasting time on the small stuff like the humble investor having a go looking at the bigger picture would be more constructive. Lets use this form to make a difference on the players that are causing these numbers who are the players with both feet in the trough.
ALL YOU GREAT KIWI LETS TAKE ACTION
The signpost is there with the drought this is the game changer. This can all be sorted in 4 short weeks. There is a very easy way for the buyers to take back control back of the market.
STOP BIDDING AND BUYING AT AUCTION.
Why as buyers are we allowing Real-estate clowns to dictate to the buyer how we purchase? Lets make them start doing their jobs and working for their money and show some sort of interest in purchasers.
Stop BIDDING AND BUYING by auction and the market will even out very quickly. If it keeps going like it is and shares also keep going up we are heading for a 1987 crash.
It is about time Bernard Hickey had ago at the Real-estate industry like he did with interest rates and bankers these guys are away with the fairies and need to come back to earth and reality.
'STOP BIDDING AND BUYING AT
'STOP BIDDING AND BUYING AT AUCTION" Not so long ago, there was similar campaign to ask everyone to stop buying petrol, in effect of forcing the petrol price to go lower. It's a noble idea but the demands will kill it..
Set up a Facbook group if you feel the urge..
Looks like Olly's prediction
Looks like Olly's prediction 6 months ago is coming true:
“House prices to double over next few years”
As the end of the year draws near, now is a good time to review the past 10 to 11 months and look into the foreseeable future.
Let’s look at a number of influences and influencers on the property market in general.
I’ll also look at the suggestions being made to ‘help’ first time home buyers into the market, as they get further and further left behind.
Read the rest here:
http://www.interest.co.nz/property/61784/opinion-olly-newland-looks-year-retrospect-and-reviews-what-come-your-view
That is a ridiculously
That is a ridiculously premature statement!
Matt you are just shirty
Matt you are just shirty because Big Daddy's statements come true and yours almost always are proved wrong.
You have been in Australia too long to make accurate comments about the Auckland property market.
This not just about exploding
This not just about exploding residential house prices and re-alignment of home ownership
Auckland based local property developers are being out-priced in their own game by outlanders
A South African flies in and buys 6 properties off the plan, yet to be built
Because he had a had-to-have imperative to find a repository for his $1.5 million residency entry fee
Auckland is being sucked into into a whirlpool of social re-engineering
article NZ Herald
Grey Power official's complaints about immigration have been labelled uninformed, but the group's central Auckland president says they reflect the feeling of many elderly in the area. "at all the seniors meetings there are seniors raising concerns about ... getting to know neighbours when they are now surrounded by so many who don't speak English and with whom they have little natural opportunity to mix." "how much change can people cope with, in a short space of time, before culture shock becomes the new norm, especially for those whose reference points are being removed, or discarded?"
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10870638
Nothing has changed in 3 years
Amanda Morral 3 February 2011
Migration policy linked to inflated housing prices
http://www.interest.co.nz/node/52140/kiwisaver
worth reading the whole article and thread - nothing has changed much
extract
iconoclast | 03 Feb 2011, 9:45pm
DC - read the words Wolly used carefully - he is absolutely correct - revise his time period down to 30 years ago - you are comparing Auckland to other places .. Wolly is not - he is comparing Auckland today to Auckland 30 or 50 years ago. The people who grew up there and were there 30 years ago are getting out or being pushed out. If Auckland today is better than those other places, take our word for it, Auckland was even better 30 years ago. And you missed it?
Last Sunday, a German woman
Last Sunday, a German woman in Germany bid at auction on behalf of a company, NZ registered or otherwise I know not, and paid 30% above GV for an Auckland property, sight unseen.
Chairman Moa This has a
Chairman Moa
This has a little bit more substance than paying $20 too much for a tank of Petrol.
We are talking $440000. Over the term of a 20-year mortgage ever tried saving $440000.This is where the mortgagee sales will come over the next 2 years as interest rates move up. All the people that are paying too much at present.
Be positive and take action before we create a 1987 again.