What happened Monday

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A review of things you need to know before you go home on Monday; Heartland raises rates, CCCFA rule change 'just a band aid', ANZ cranks up the 'sensitivity', Wellington construction woes, rates moving up, stocks mostly down, dollar down again

2nd May 22, 3:59pm by David Hargreaves

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

MORTGAGE RATE CHANGES
Heartland Bank has made some reasonably chunky rises to its rates, but is still comfortably below the rates being offered by the biggest banks. Its floating rate moves up to 4% from 3.5%, the one-year fixed up to 3.85% from 3.49%, the two-year to 4.7% from 4.05%, and the three-year to 4.84% from 4.25%.

TERM DEPOSIT RATE CHANGES
There have been no TD rate changes so far today.

BANK LOBBY GROUP SAYS TWEAKS TO CCCFA LENDING RULES 'JUST A BAND AID'
Bank lobby group the New Zealand Bankers' Association (NZBA) says the Government’s tweaks to the Credit Contracts and Consumer Finance Act (CCCFA) lending rules announced in March are just a band aid. The Government announced tweaks to the rules that came into force in December after complaints the new rules were inhibiting lending. In a submission on the proposed changes the NZBA says it supports the intention behind the proposed changes, "but we emphasise again that they do not go far enough and are unlikely to result in any material changes for consumers when seeking credit. Without a more fulsome review of the Regulations, including changes to the scope of expenses and the requirements around verification, the Regulations will continue to unduly restrict access to credit." The NZBA "strongly support" further, urgent regulatory change.

ANZ CRANKS UP THE 'SENSITIVITY'
The country's largest bank and biggest home lender, ANZ, has confirmed that is increasing the interest rate it uses to test whether borrowers will be able to continue making loan repayments if interest rates rise significantly. ANZ is increasing what it calls its Servicing Sensitivity Rate to 7.15% from 6.7%.

KIWI INSURANCE $45M SALE TO NIB GOES THROUGH
Kiwibank's parent company Kiwi Group Holdings Limited has confirmed completion of the earlier announced $45 million sale of its life insurance business, Kiwi Insurance Limited (Kiwi Insurance), to nib NZ holdings limited. Under the deal, nib New Zealand has acquired all the shares in Kiwi Insurance and entered an exclusive partnership with Kiwibank through which the bank will refer its retail customers to nib for their life and living insurance needs.

NOW IT IS MANAWA ENERGY
NZX-listed Trustpower has changed its name to Manawa Energy from Monday after completion of the sale to Mercury (announced last August) of the Trustpower gas, telecommunications, and retail electricity supply business (excluding the supply of electricity to commercial and industrial customers). The final sale price of $467 million is made up of an underlying price of $426m and a $41m payment for estimated working capital.

TWO STEPS. TOO EASY
Cyber security watchdog CERT NZ is encouraging small-to-medium businesses to implement two-factor authentication (2FA) as part of its new Two Steps, Too Easy campaign. CERT NZ says that while cyber security is one of the top concerns for businesses, they often don’t know where to start. 2FA is an easy step that businesses can take to protect the things that are important to them.

FIXED PRICE WOES SEE WELLINGTON CONSTRUCTOR GO UNDER
David Ruscoe and Russell Moore from Grant Thornton New Zealand have been appointed liquidators of Armstrong Downes Commercial (2012) Limited (ADC), a Wellington based construction company. The liquidators said two of the company’s largest construction projects are suffering substantial losses as a result of being fixed price in an economic environment of spiralling costs, procurement challenges, and labour shortages. "Following an unsuccessful attempt at restructuring the company’s contracts, it has been decided the appointment of liquidators is in the best interests of customers, sub-contractors and other stakeholders to minimise further losses." ADC currently has eight construction projects in progress throughout Wellington. Work has halted on these projects. No other Armstrong Downes group companies are in liquidation.

BUILDING CODE CONSULTATION OPENS
MBIE has opened consultation on proposed changes to the Building Code acceptable solutions and verification methods which cover plumbing and drainage, protection from fire, and structural stability of hollow-core floors. Dave Gittings, MBIE's Manager Building Performance and Engineering says: “As New Zealand’s central building regulator, we consult on updates to the Building Code to ensure we are keeping pace with innovation, current construction methods and the needs of our modern society.”

GREEN HYDROGEN COLLABORATION
Australia's Fortescue Future Industries (FFI) and NZ's Firstgas Group (Firstgas) have embarked on a new collaboration to investigate developing green hydrogen projects, with the aim of continuing to decarbonise New Zealand’s energy system, and to help improve energy security. FFI and Firstgas have signed a non-binding Memorandum of Understanding to identify opportunities to produce and distribute green hydrogen to tens of thousands of homes and businesses in New Zealand.

GOLD DOWN
In early Asian trading, gold is down $9 on the day so far to US1887.70/oz.

SWAPS FIRM
We don't have today's closing swap rates yet. They are likely to be firm again. The 90 day bank bill rate is up 11 bps today at 2.11%. The Australian Govt ten year benchmark bond rate is up 7 bps at 3.25%. The China Govt 10yr is up 1 bps at 2.86%. The New Zealand Govt 10 year bond rate has risen 5 bps to 3.71%. The US Govt ten year is up 5 bps at 2.93%.

STOCKS MOSTLY DOWN
Tokyo is down 0.53%. But Hong Kong is up 4.1% and Shanghai has opened up 2.41%. The ASX200 is down 1.24% in mid-day trade. And the NZX50 is down 0.75% in late Monday trade.

NZ DOLLAR DOWN AGAIN
The Kiwi dollar is now at 64.3USc and 45 bps lower than at the weekend and therefore another two year low. Against the Aussie though we are actually 20 bps higher at 91.4 AUc. Against the euro we are 8 bps lower at 61.2 euro cents. That means the TWI-5 is now down at 71.8.

BITCOIN FIRMER
Bitcoin is still below US$40,000 but has picked up a little in the past 24 hours, rising 1.87% to US$38,637, having been as low as $37,793 in the past 24 hours. The whole crypto market is up 2.14% to US$1.74 trillion.

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111 Comments

by GV 27 | 2nd May 22, 4:01pm 1651464117

We are indeed being buttered up for a wealth tax, it would seem. Can't wait to see how this is justified over a LVT, but if Three Waters is anything to go by, we will see little meaningful rationalisation other than scorn for anyone who opposes it.

by Independent_Observer | 2nd May 22, 4:06pm 1651464393

Got to love how they are considering a wealth tax now, when asset markets are looking like its 1929. There might not be any wealth to tax if the debt/asset bubble implodes.

by GV 27 | 2nd May 22, 4:12pm 1651464757

It's brilliant in a way. You just pump a bunch more money in and then tax people in today $$$ for wealth that you've created, without any real cash flowing back to people who own assets unless they buy or sell them.

I'm guessing the 'people not having enough net income to survive on' gig is up when inflation runs hot so you've got to find another way to milk the general populace for your spending promises.

by Zack Brando | 2nd May 22, 4:40pm 1651466402

The next "Crisis" for NZ could easily be a Currency Crisis.

by Baywatch | 2nd May 22, 6:53pm 1651474410

It wont be only NZD ....

by DDH | 2nd May 22, 7:05pm 1651475124

Which isn't going to help inflation, unless the reserve bank heightens interest rates well over the Fed rate.

Wage growth isn't keeping up with inflation, I'm pretty basic and I cannot see how this doesn't lead to a recession, high employment or not.

by JimboJones | 2nd May 22, 7:24pm 1651476251

There has to be a lag between wages and inflation doesn’t there? At my last wage review inflation was only running at 3% or so, and it’s another ~6 months until my next one.

by iliketobike | 2nd May 22, 4:14pm 1651464840

Maybe we will all get a chunky refund on our paper losses?

Might keep recent home buyers from going into negative equity.

(Sarc)

by Foxglove. | 2nd May 22, 4:14pm 1651464889

The Greens wealth tax will claim 1% on any assets in excess of $1 mill. Quite a lot of households in that catchment now given extreme rise in house property values of late. Guess they saw that coming?

by hum | 2nd May 22, 4:20pm 1651465247

this will still be marginal on the 1-2m house. from what i understand it goes up one percent after each million?

From 10m net worth its goes to 10% tax, 20% at 20m and so on?

by Kiwi Tim | 2nd May 22, 4:30pm 1651465807

What happens if you have a heap of debt? Is it just on the equity?

by Hamish | 2nd May 22, 4:48pm 1651466898

If just on the equity (which I imagine it would be?) it'll be leakier than any leaky home fiasco we've been through so far.

by sit23 | 2nd May 22, 7:01pm 1651474915

The Greens have lost the votes of all the people with over a million in home equity. Plus they have also lost the votes of all those Kiwis who hope to have equity of a million sometime in the future. Crikey. A fair proportion of those left have no clue about voting, or a desire to vote. This does not give them a large number of people who will be voting for them. Not a politically sensible move.

by JimboJones | 2nd May 22, 7:27pm 1651476448

Not necessarily, if they are going to use that money to offset the crazy PAYE rates I’d be all for it even though our place is currently “worth”over $1 million.

by your theory no one that works should vote national as they believe all tax should be paid from PAYE.

by refactornz | 3rd May 22, 7:27am 1651519624

They want to Increase PAYE rates, not lower them:

"We’ll update progressive income tax so those earning much more income contribute a little more to help fund better social support for everyone. We’ll introduce new income tax brackets of 37% for income over $100,000 and 42% for income over $150,000."

by JamesM | 2nd May 22, 7:23pm 1651476210

Is that 1% per annum? Ie if you have a house worth $4m you are taxed 1% pa of $3m ie $30K pa?

by JimboJones | 2nd May 22, 7:29pm 1651476553

Sounds good to me. I pay more than that in PAYE and I can’t afford anything like that.

by EdwardD | 2nd May 22, 8:41pm 1651480908

That will affect a lot of retirees who have a $1m home, but are cash poor. I'm guessing they will want these retirees to take reverse mortgages. If this is the case, what happens when retirement homes also want to take a large piece of the pie.

by Palmtree08 | 2nd May 22, 9:35pm 1651484155

I had this out with a Green party member a few years back. Can't remember the full details, but if joint owners of property, the $1 mill property would be $500 000 each, so avoid the tax. Another brilliant suggestion the guy had, was if you are over the tax threshold, just borrow money against the asset and have a massive spend up. Consumption of Earth's finite resources and pollution resulting from that consumption are apparently no longer a concern for some in the political wing of NZs Green movement?

by Eschaton | 3rd May 22, 7:56am 1651521406

Yep, nominal figures GO UP but is anyone really that better off in real terms?

by hum | 2nd May 22, 4:13pm 1651464786

Funny the wealth tax starts at 1m, few years ago you would be rich being a millionaire.

by HistoryRepeats | 2nd May 22, 4:46pm 1651466782

It's frankly unbelievable that a mere $1m would be the threshold, especially with inflation skyrocketing and assets being clobbered. Try investing $1m and getting a livable income out of that, then having to pay both the income tax and the wealth tax.

My "wealth" is coming with me to Australia. NZ looks headed to become some monstrous cross between Zimbabwe and Venezuela.

by Pa1nter | 2nd May 22, 7:08pm 1651475297

Thats the Australia with a capital gains tax?

If you have a million dollars and expect it to return you a lot with little Mahi put in, eventually that'll probably return you not much anywhere you go.

by HistoryRepeats | 2nd May 22, 7:29pm 1651476554

Yes I'm perfectly comfortable with a capital gains tax, a hell of a lot more fair than a wealth tax. Not a particular concern anyway unless you're in the game of buying and selling for profit, which I'm not.

I was only using a million dollars as an example, this being the proposed threshold. I have no idea what mahi means sorry.

by The Person | 2nd May 22, 11:29pm 1651490954

mahi

1. (verb) (-a,-ngia) to work, do, perform, make, accomplish, practise, raise (money).

https://maoridictionary.co.nz/search?&keywords=mahi

part of new zealand english these days.

by Brock Landers | 2nd May 22, 11:42pm 1651491723

It's not NZ English.

by Pa1nter | 2nd May 22, 11:57pm 1651492658

During the 19th century, New Zealand English gained many loanwords from the Māori language.^[1] The use of Māori words in New Zealand English has increased since the 1990s

Whilst the list of Maori loanwords is fluid, "mahi" is regularly cited as being one of them incorporated into NZ English.

You seem to be fairly anti-loanwords but NZ English is not the Queen's English.

by kiwikidsnz | 2nd May 22, 7:31pm 1651476708

Your main residence (home) | Australian Taxation Office (ato.gov.au)

Your main residence (your home) is generally exempt from capital gains tax (CGT).

by RickStrauss | 2nd May 22, 4:32pm 1651465920

Bizarre, when LVT is so much easier and better.

Perhaps because too many in government local and central have investment property...and entitlement mentality in that area is what has driven NZ to its current dire straits, to date.

by blobbles | 2nd May 22, 4:42pm 1651466572

Indeed, LVT should be put through, but to be "tax neutral", GST should be lowered to 10% IMO. Would fulfill Labours promises somewhat and broaden the tax base significantly. Unfortunately the savings to a poorer households budget with a 5% tax cut will basically be eaten up in a rent raise to cover it from the landlord. Also LVT shouldn't be applied to anything deemed a production area. That's farms/forestry, industrial zoned land, national parks etc. Lifestyle blocks and suburbia, absolutely.

They definitely won't do it though, far too logical.

by RickStrauss | 3rd May 22, 1:10pm 1651540227

Well, LVT on the unimproved value of land has that advantage re not being able to be simply added to rents.

by lonewolfnz | 2nd May 22, 6:23pm 1651472595

Its outrageous.

Imagine saving for 40 years in some blue collar job, with back breaking labour. Say you saved up $1M via kiwisaver and hard graft. Plus a $1M house (say 3 bedroom brick and tile in Glenfield). So your savings are now over the threshold.

Conservative returns are perhaps 3.5% a year, let's say 2.5% after tax. So $25k. Not much of a fun retirement. But now labour wants 1% of that. So you lose nearly half your entire passive income (aside from the pension which likely won't exist in 30 years anyway). So now you need a $2M saving instead for the same lifestyle. Back to work then at 65.

by Nzdano | 2nd May 22, 6:47pm 1651474071

It's basically an age tax. Wealth has a strong correlation with age.

by the Joneses | 2nd May 22, 6:50pm 1651474224

Any normal person would also plan to spend the principal over 30 years. Then sell the house when they need looking after in a retirement home. You can't take your money with you when you die.

The idea some have of never going backwards with your net worth is a strange one to me.

by Foxglove. | 2nd May 22, 7:04pm 1651475087

Don’t overlook that if one spouse ends up in say dementia care the government will draw off all assets up to about $230k tp pay for it. That is fair enough but there are two other considerations. Firstly the survivor of the two may end up bereft and exhausted of any means. Secondly those that have not saved, have no assets, will be totally funded in care by the tax payer.

by sit23 | 2nd May 22, 7:11pm 1651475497

Well phrased. Looks like the Greens have lost the "normal people" vote. Some would say, they never had it anyway. For a while there they were trying so hard to be some sort of party that was capable of at least sharing the running of the country in a coalition. Not any more.

by HistoryRepeats | 2nd May 22, 7:39pm 1651477166

lonewolfnz: "But now labour wants 1% of that."

Technically I believe this is the Greens' idea. When pushed on it this afternoon, Jacinda ruled out a wealth tax. But not long ago she also said we wouldn't have any vaccine mandates...

But yeah, totally agree that the proposed tax is outrageous. Typical nutty stuff from the Greens.

by JamesM | 2nd May 22, 9:25pm 1651483536

What I can’t understand is why we need to be taxed more?

The Tax take is at record levels so why are they wanting to tax even more money?

by HistoryRepeats | 3rd May 22, 7:35am 1651520150

After the government's ridiculous panicked spend-up in response to C-19 (the QE, the financial support for everyone they forced to stop working, and those "free" vaccines), it's dawned on them that they have to figure out how to repay the enormous debts racked up. So they have to extract more tax from their long-suffering citizens. And in a typical display of incompetence, they've decided to discuss this at the exact time that everyone is starting to feel the impact of massive inflation, increases in mortgage rates, etc.

by imhenry | 3rd May 22, 9:40am 1651527609

So that they can make more big spending announcements.

by Squishy | 2nd May 22, 7:07pm 1651475237

Good luck taxing wealth. You'll see it move offshore or be burried in such a way that it's near impossible to ascertain the value of.

by hum | 2nd May 22, 4:07pm 1651464471

US187.70/oz. I am out to the shop buying as much as i can, see ya later

by General Comment | 2nd May 22, 4:31pm 1651465881

That was my first thought too. Holy cow it's taken a hammering!

by rastus1 | 2nd May 22, 4:51pm 1651467108

Ha Ha .let me know what shop I can buy at that price would you?

by Zack Brando | 2nd May 22, 4:08pm 1651464530

NZD-to-USD

Live Tracking at NZ $0.6428

by Galloleous | 2nd May 22, 4:20pm 1651465240

In early Asian trading, gold is down $9 on the day so far to US187.70/oz.

Indeed that is where gold will be down to once it looses its 90% monetary premium :P

by Whatwillhappen | 2nd May 22, 4:31pm 1651465903

In other news, Anchor butter is now $8.99 a block (not on special) at the local New World.

by RickStrauss | 2nd May 22, 4:34pm 1651466087

Does this mean taxpayers now won't be asked to provide financial help when droughts/floods hit, then? Free markets etc...

by Whatwillhappen | 2nd May 22, 4:45pm 1651466703

By my reckoning that's a 40% increase in about 4 years. And the exchange rate hasn't moved very much.

by Pa1nter | 2nd May 22, 7:10pm 1651475459

People go to high roller New World? Block of butters like $4 at Crap N Save

Better living everyone.

by Whatwillhappen | 2nd May 22, 7:36pm 1651476997

It's a 15km trip to the nearest Pak n Save or Countdown - New World's the only show in town.

Block of Anchor butter at Pak n Save is $7.49.

Pam's butter is more like $6.89 at Pak n Save

If you buy for $4 at the Warehouse (if your Te Ware Whare does groceries) it's a loss leader

by EdwardD | 2nd May 22, 8:48pm 1651481322

At Pak n Save this morning and butter was $6.

by Squishy | 2nd May 22, 7:13pm 1651475614

It's probably cheaper to fly to Australia to do your grocery shopping and buy New Zealand butter: https://www.woolworths.com.au/shop/productdetails/504592/westgold-butte…

The supermarkets duopoly won in New Zealand.

by JimboJones | 2nd May 22, 7:36pm 1651477002

About $7.60 NZD at tesco UK so not that much to do with our duopoly for once.

by HistoryRepeats | 2nd May 22, 8:11pm 1651479115

Really, which brand?

Here it says you can buy a 250-g block of butter at Tesco's for GBP1.75, which is about NZ$3.40:

https://www.tesco.com/groceries/en-GB/products/261819888

by jo147 | 2nd May 22, 9:20pm 1651483204

Our blocks are 500gm so double 3.40 is $6.80 which is about right.

West gold is only 400gm - 20% less. Hence cheaper price.

by HistoryRepeats | 3rd May 22, 7:45am 1651520723

Ah, I stand corrected, thanks.

by blobbles | 2nd May 22, 4:36pm 1651466195

"FIXED PRICE WOES SEE WELLINGTON CONSTRUCTOR GO UNDER"

Indeed, it's worse than that I think. We are rapidly becoming completely unaffordable to build anything but a shoe box. Prices going well over $4k per m2 now and long, long delays. In my view, the whole sector is about to stall, which means it's going to die off pretty quickly. Very few people will be able to afford to build as the builders also have to include in their costs:

Spending a day going around all the retailers getting as much product as they can, because retailers are rationing
Storing surplus goods so they can finish jobs
Potentially higher fuel/person/goods cost in the near/mid term
Delay financing costs

Was also thinking - is GST charged at every step of the way when we buy a good? i.e. does the supplier to placemakers also include GST in their base price, or is GST only realised when the it's actually sold retail? I can't remember how this works tax-wise.

by Whatwillhappen | 2nd May 22, 4:46pm 1651466784

It's all about cashflows too - if they could have held on another two weeks they could have had a cash injection from a completed stage of of one of their projects

by Foxglove. | 2nd May 22, 4:48pm 1651466912

A double movement then, if property values do fall significantly further, in that a new house will cost more to build than its value will be relative to the market?

by rastus1 | 2nd May 22, 4:53pm 1651467232

GST is only a cost to the non reg end user i.e us lot

by redcows1 | 2nd May 22, 5:07pm 1651468027

Businesses are totally GST neutral. GST from paid by customer to the builder minus GST paid to supplier equals GST paid by builder to ird. Only the consumer is left holding the GST invoice.

by DD62 | 2nd May 22, 6:11pm 1651471877

Only if the business charges the same price they buy for.

by redcows1 | 2nd May 22, 6:57pm 1651474635

You will have to explain that.

by sit23 | 2nd May 22, 7:15pm 1651475722

Nearly right. Businesses pay Gst on their profit. Then we pay income tax on any other profit that is given to ourselves as shareholders........I think!

by DDH | 2nd May 22, 8:34pm 1651480485

Yes, claim the GST paid on all expenses and collect the gst charged for your goods and services. The difference is passed on to the govt, by the business. It's ultimately a 0 expense apart from admin and the end consumer pays the % rate of the ultimate cost of the goods. Profits declared for shareholders, are taxed 28%

by Palmtree08 | 2nd May 22, 9:57pm 1651485477

GST can't be claimed on all expenses. Wages and interest for example. If a business generated $100 in turnover and paid expenses of $100 in interest and wages, there would be $15 of GST to pay next return.

by redcows1 | 3rd May 22, 12:45am 1651495521

In which case they must have actually had $115 in gross income to be paying $15 GST to ird. If it's $100 gross then the business will have only collected $13.04 of GST and will owe that in the return.

(I can't get to sleep and have a real hang up about business not actually having a GST liability.)

by rastus1 | 3rd May 22, 8:25am 1651523144

You can't claim gst on wages because your employee didn't charge it!

by blobbles | 2nd May 22, 10:24pm 1651487098

Yeah, I had a feeling this is how it worked, was tying myself up in knots in mental tax calculations!

by HouseMouse | 2nd May 22, 5:13pm 1651468411

Yep big trouble for the sector, which I have been calling for quite a while.

we will see plenty more liquidations over coming months.

bit ironic that there is a puff piece on OneRoof saying how under-manned the sector is. That problem will resolve itself…

I am hearing 4.5k per square metres as low end.

by Brock Landers | 2nd May 22, 5:27pm 1651469264

I'm paying $1600 sqm for my build in Australia, mid-high end turn-key.

Something is very broken with construction here. It's ticket clippers all the way down.

by HouseMouse | 2nd May 22, 5:47pm 1651470447

100%

by Befuddled | 2nd May 22, 6:23pm 1651472636

Seriously? I figure bottom end at around $2500/m2 plus GST, and where we used to figure hi-end architectural houses at $5k/m2 circa 2010, it's jumped from $10k/m2 to $20k/m2 in the last 2 to 3 years.

Sure - we design for earthquakes here and that really complicates things, whereas in Aus you can just stack double brick and throw a few cyclone tie-downs in there, but that's a crazy difference. It'd be great to see a breakdown of how such a large difference arises (Council RC & BS and their other bureaucratic costs being a biggie).

I'm picking a large exodus to Aus by the disaffected. Thx Labour & RBNZ.

by RickStrauss | 3rd May 22, 1:13pm 1651540383

I'm picking a large exodus to Aus by the disaffected. Thx Labour & RBNZ.

Thanks, Labour, National, Treasury and RBNZ.

May as well credit all where it's due.

by iami | 2nd May 22, 7:03pm 1651475033

Be careful, construction costs have apparently doubled in Australia and many cheap deals apparently are scams.

by Pa1nter | 2nd May 22, 7:23pm 1651476220

3 years ago on the GC you'd be looking at $1800 a square low end. Throw in the same sort of shortages of labour and materials going on everywhere with increased demand and $1600 a square for mid-high end is a hell of a deal.

Maybe "low end" doesn't have carpet or plastering.

by Brock Landers | 2nd May 22, 7:53pm 1651478038

Potentially skewed by building a larger house. Not sure what it works out at for smaller ones.

by Pa1nter | 2nd May 22, 10:38pm 1651487890

250-300m2?

by Brock Landers | 2nd May 22, 7:25pm 1651476320

My experience with volume builders is that the advertised "base prices" are very scammy.

Add about 50% onto it for fees, charges, and upgrades to get the real price. Which worked a bit under $1600 for my build.

by Pa1nter | 2nd May 22, 7:13pm 1651475595

I think your mid-high end and actual mid-high end are two different things.

Spose it's why you get to wait.

by Brock Landers | 2nd May 22, 7:28pm 1651476532

That should be read as somewhere between middle and high. Not middle of the high end.

by Pa1nter | 2nd May 22, 10:42pm 1651488137

Yeah, I don't know where your "ends" lie. Mid range is usually designed by an architect, built by an experienced independent builder or construction company, bespoke natural substrates, higher stud heights, graduating levels and rooflines, that sort of thing. Usually thousands per square in any market that doesn't have indentured labour.

Low end is something a group home or off the plan builder puts together and then you do some add ons like move some walls or have slightly nicer benchtops or a kitchen island and wider ranch sliders.

High end is the sort of house that ends up having a $500k+ pool.

by Hardly | 2nd May 22, 5:05pm 1651467908

Banks - we don’t need rules we are responsible lenders.

Also banks - we don’t see any issue testing serviceability against a level of spending the person has not proven they can achieve.

There is no way some rich household will be able to shed expenses down to bare necessities. People need to be benchmarked based on how they live not how they could live. If they want to be judged on a lower level of expenditure they can practice that for three months before the loan.

by Brock Landers | 2nd May 22, 5:16pm 1651468610

https://www.nzherald.co.nz/business/sebastien-desclee-what-is-aotearoas…

This is a great piece of irony. Wants to understand what would drive people to leave ✈️ ✅, while simultaneously only being able to use the woke new-speak name of the country.

by redcows1 | 2nd May 22, 5:50pm 1651470625

I got absolutely no problem using Maori written or spoken even though I'm not in any way fluent. But adding an s on the end of non English words just does my head in.

by singautim | 2nd May 22, 7:12pm 1651475554

A healthy use of loanwords is OK although it does discriminate against recent immigrants. But yesterday's "Rangatahi " on the front page of the Herald did not help my understanding of youth crime. It just made me think the editor assumes Māori children are criminals. "Rangatahi " - even my wife didn't know it. Sensible journalists should reserve Te Reo words for articles about success in the Arts or Sports and avoid them with negative subjects such as crime or politics.

by No Moa | 2nd May 22, 8:20pm 1651479620

If the word was used to describe non Maori children would it be ok?

by singautim | 3rd May 22, 8:04am 1651521846

It was a word I did not know. I assumed in context it applies to all children because since they have not been arrested they could be anything. But if a writer who is writing in English has a common English word 'children' but chooses to use a word that is clearly Te Reo meaning the same then the connotation is obvious. Just bad journalism.

by rolande | 3rd May 22, 6:15am 1651515301

There is a trend that Maori loanwords have positive connotations e.g. mahi / work.

People now use it a lot e.g. thanks for your mahi.

But I can't recall people using it in a perjorative sentence e.g. his mahi isn't up to scratch.

by Baywatch | 2nd May 22, 7:02pm 1651474948

Brock you seem to have a problem with the New Zealands 3 official languages - English, Maori, Sign language. As you can see Aotearoa is stamped on the cover of our Passports - and I have never heard anyone say they are woke?

That chip grows bigger by the day - how are you going to get on the plane when you finally get out of here?

by HistoryRepeats | 2nd May 22, 7:22pm 1651476134

In Canada there are two official languages, English and French. So everything is presented in both languages - unlike here, where it's becoming increasingly normal to see Maori words with no English translation.

Where's this headed, are we all going to be forced to learn Maori?

I'm hopeless at all languages other than English, and I can't pronounce let alone remember all the new names of government departments. So I'm looking forward to moving to an English-speaking nation. Like Brock has already done, I believe?

by JimboJones | 2nd May 22, 7:44pm 1651477451

This is going to be a great place once all the whingers have gone! although I sense they are all talk.

Complaining about high house prices is fair enough, but complaining about the use of your country’s native language is just ignorance, Muldoon was right.

by Brock Landers | 2nd May 22, 7:53pm 1651477981

With a little more attention paid, you would understand that the issue is speaking gibberish by mish-mashing the two together. Speaking one or the other properly is just great. Whatever floats your boat.

by Whatwillhappen | 2nd May 22, 11:42pm 1651491742

It's called a creole when you mix two to make a new one. Pidgin, and Haitian creole are two examples.

by Pa1nter | 2nd May 22, 11:48pm 1651492085

Even Japanese has an entire alphabet to use for foreign words.

by Brock Landers | 2nd May 22, 8:07pm 1651478864

The rot of woke-ness does run deep into the civil service. But there is only one official name for the country, the traditional name "New Zealand" and it's a wonderful name.

Your mates in The Maori Party tried to get it changed with a petition last year to the more recently concocted "Aotearoa" and failed, thank goodness. It's only a vocal minority that has such disdain for our heritage.

As a professional race-baiter, you really need to up your game. It's like amateur hour each time you have a go at it.

I suppose I could use a different passport? Or do you mean this fictional crisp?

by Baywatch | 2nd May 22, 8:11pm 1651479081

"As a professional race-baiter"...well check yourself out when you brush your teeth tonight Broke.

The Dutch. The first European to arrive in New Zealand was the Dutch explorer Abel Tasman in 1642. The name New Zealand comes from the Dutch 'Nieuw Zeeland', the name first given to us by a Dutch mapmaker

by Baywatch | 2nd May 22, 8:13pm 1651479215

Really we should be speaking Dutch?

by Brock Landers | 2nd May 22, 8:37pm 1651480645

I am not a professional, as I do not author a race-baiting column, unlike some in the mirror.

This is correct. The anglicised name "New Zealand" dates from Abel Tasman in 1642. In contrast, the first appearance of the colloquial term "Aotearoa" was in the second half of the 19th century (long after the Treaty of Waitangi founded our nation) and was not popularized in any way until the 20th century.

A recent poll found that only 9% of New Zealanders want the name of the country changed to the recently concocted "Aotearoa" while the vast majority do not want our name meddled with.

They should listen to the Mean Girls and stop trying to make fetch happen. It's not going to happen.

by Baywatch | 2nd May 22, 8:37pm 1651480673

Ok if you say so..make sure you floss and mediate, sun will rise tomorrow I am certain.

by Nzdan | 3rd May 22, 9:11am 1651525891

English is not actually an official language of New Zealand.

by No Moa | 2nd May 22, 8:06pm 1651478807

Are we now called Aotearoans not New Zealanders?

by rolande | 3rd May 22, 6:08am 1651514912

I don't mind Aotearoa. But I am curious about the demonym. It would be interesting to find out.

by RickStrauss | 3rd May 22, 1:16pm 1651540614

The only folk leaving New Zealand because of a few Maori words being used in English are the ranting Facebook/Talkback nutters. Most seem to be leaving because of the penalising of productive work and greedy transferring of wealth to asset owners making the country unlivable for younger Kiwis, and most younger Kiwis are not stressed by Maori language terms being adopted in English.

by DTRH | 2nd May 22, 6:01pm 1651471304

NZD looking very weak this will just push inflation higher. Some serious problems if construction companies are already going bankrupt, the people who purchased houses in last three years will be looking at losing deposit and being in negative equity how many are over leveraged and will be paying $1500 per week for one million dollar box in Auckland once interest rates hit 7% for 2 year fixed. Bankruptcy will be a daily occurrence as paying this much for 30 years is like a prison sentence just working to pay mortgage and bills.

by HistoryRepeats | 2nd May 22, 6:17pm 1651472259

On top of the burden of increased mortgage payments, I understand that if the value of your house were to drop significantly in a downturn, when it comes time to re-fix your rate your friendly bank may request that you "top up" the lost equity to meet the terms of your loan agreement.

by IT GUY | 2nd May 22, 8:04pm 1651478659

they can but they have a bigger collective problem then people paying the debt

by sit23 | 2nd May 22, 7:23pm 1651476238

Our dollar is not weak. Speculators and traders are just refusing to deal in NZ$ because they are too scared to. So it drops to where real people who need to swap currencies will trade. This makes it easier to sell our stuff overseas, and easier for visitors to come and visit with their foreign money. it also helps our domestic producers to compete with now more expensive imports. So a bit less doom and gloom please, and a bit more looking for opportunities that are now arising for locally made substitutes that we have been importing for years. Small example. Hakataramea farmers making flash overcoats out of their own farms wool. They can now compete a bit better against more expensive imported coats.

by DTRH | 2nd May 22, 8:06pm 1651478769

NZ imports more than it exports at the moment as dollar tumbles inflation will get higher any imports of materials will cost more, but with the items we do export it will be cheaper for foreign buyers let’s hope we can come up with more than a few coats more investment should go into manufacturing and get something more than just selling house's to each other.

by Zack Brando | 2nd May 22, 8:17pm 1651479437

Depends how low the NZD goes, even exporters are dependent on imports.