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Editors choice comments

The Auckland flat line effect will slowly but surely feed into the regions when they too will reach a level where they become flat and weak. The rush to the regions (because that's what it is) has reached its peak and those expecting ever increasing prices outside of Auckland are in for a winter of discontent.

by: BigDaddy

on REINZ data shows the housing market remained steady in November with sales volumes up slightly compared to a year ago
Breaking up the supermarket monopoly would be a good start. Yesterday I saw a very stressed couple at the supermarket arguing about their bill. The CPI is bull*. It's not an apples to apples measure. The most basic items like meat and veg are a huge ripoff but if the cost of junk food or luxury cars drops are those people really better off? It's a very muddy statistic with a lot of things mixed in. Frankly the BigMac index might be more accurate.

by: bilbo

on The myth is that households are getting less and less of the national income. They are not. It is stable at a good level, as is the updated measure of inequality
Robertson’s other challenge might be getting government departments to work more closely together to achieve his designated “outcomes”.
Indeed. Gubmint is heavily silo'ed, and there will have to be a lotta C-suite meetings, at the best catering establishments mais naturellement, to coordinate a PR release for the first working group to begin to study the logistics of and terms of reference for, such cross-silo action. Not to mention choosing suitable venues and catering options for further meetings, training partners and consultant advisors for the staff culture changes needed, initiating...

by: waymad

on Capacity constraints, prudence and wellbeing set to feature in the Half Year Economic and Fiscal Update and Budget Policy Statement on Thursday
This would be such an easy win for the Govt. Set up their 1000th working group to have a look at CC interest rates. Report back in just 2 years, right before the election and say they are going to fix this once elected.

by: Mrs The Point

on Credit card market 'a real area of customer harm', says The Co-operative Bank's CEO David Cunningham
"Prices are starting to face some headwinds" It must be that westerly wind from Sydney.

by: Retired-Poppy

on Although buyers are being cautious, auction numbers and sales rates are steady and most of those that sell are fetching more than their rating valuations
I can hardly think of a better way for the Government to raise $190m pa. Excellent work.
What's that I hear you say? Property investors only use negative gearing temporarily until the property is cash flow positive? This change will only hurt for a very short period of time then, won't it!
For a true investor there won't be any impact. For a speculator however.....

by: Zombie ponzi

on The IRD can't say for certain how ring-fencing rental losses will affect the residential property market, but notes investors suffering losses on their rentals are currently getting tax breaks of $2000 a year
I'm a FHB currently in the market, and I'm getting reasonably nervous about putting any offers on property. Yes a lot of the factors are pointing in the right direction for our economy currently, but haven't the figures been very similar in Australia, and we've all heard enough about their market. The only difference I see is now that it has turned in Australia the RBA are more in a mood to let the market run on its own than prop it up. Where as the RBNZ is a lot more proactive trying to keep the market in a similar or improving condition.

by: Big_Saint

on Hood the hawks: The outlook is strong but uncertain. The RBNZ has released the doves, Kiwibank's Jarrod Kerr & Jeremy Couchman say in their latest economic outlook
But do we want low lending interest rates for home loans?. All that seems to do is push up house prices, as people can afford to borrow more as they can afford to service a larger mortgage. Also NZ doesn't have a deposit guarantee for savers, unlike Oz, so savers end up taking a haircut if something goes wrong, and if savers are only getting a little bit above inflation, you can see why people are putting their money into houses or shares..

by: Rob

on Co-operative Bank CEO David Cunningham says sub-4% home loan rates unsustainable unless deposit rates fall about 50 basis points
"So, GM management just did what some investors think management should do: maximize shareholder value. But what took away their other choices?" Herein lies the fundamental problem. The current economic model, that amongst other things is based on a perpetual growth myth, but more importantly places shareholder value above societal value, is just plain wrong! These global corporations, and fundamentally all publically owned (i.e listed on a sharemarket) companies focus on "shareholder value" rather than the value they return to societies. This focus sees CEOs get huge pay packets while their...

by: murray86

on Mauldin Economics' Patrick Watson argues globalization is slowly reversing meaning politicians should try to minimize the pain instead of adding to it
Really? Is this the best you can come up with? This is very important. Why do you think people are rioting in Paris at the moment, or voted for BREXIT, or Trump? What do you think caused the number of people being forced to live on the streets in NZ to go through the roof in the last 20 - 30 years? Why do you think there are so many strikes being voted for in NZ at the moment?
Above all this Government seems to understand that the Free Market Economic model has utterly failed ordinary people. This Government is at least trying to live up to it's mandate of representing ALL the people of this...

by: murray86

on Treasury releases the first version of its Living Standards Framework Dashboard that will help inform Grant Robertson's 'Wellbeing Budget'
This is the same Commerce Commission that allowed Z to buy Caltex and give Z 50% market share, shouldn't take too long to use the findings from that decision to find that this would have no material market impact.
CC seems to be a patsy as opposed to a valid government adviser. YOu would have to question on what information did they approve the Z Caltex merger?

by: John

on The Commerce Commission will have a year to do a market study on the retail fuel market; more industry probes to follow
The link between bank mortgages and insurance availability should not be understated. An example: as soon as the extent of land elevation reduction (and resultant increased flood exposure) in eastern CHCH became known, the banks were quickly onto the implications. They took a detailed interest in repair strategies, particularly whether the house was going to get new foundations elevating the finished floor levels. I understand at least one bank had a dedicated unit that reviewed each such case with an emphasis on the debt to equity position and the extent the bank wanted to remain exposed for...

by: middleman

on Jenée Tibshraeny on why you should spend more time talking to insurers before buying a property
While I don't have too much sympathy for investors, I think there are some issues brewing with the private rental market.
In many cases now property investing is a poor option. Yields are usually poor, future capital gains probably limited, and more onerous regulations present.
I think this means that moving forward we will see less investor interest in new housing. If that is the case, and if there is a limit to how many Auckland FHBs can buy, then I think the private rental market could get really tight.
This could well create a number of problems.

by: Fritz

on David Hargreaves looks at some of the past impacts of the RBNZ's 'LVR speed limit' home loan restrictions and ponders how the latest changes to the LVRs might affect the housing landscape
'The Trump Organization Planned To Give Vladimir Putin The $50 Million Penthouse In Trump Tower Moscow' - https://www.buzzfeednews.com/article/anthonycormier/the-trump-organization-planned-to-give-vladimir-putin-the

by: Gareth Vaughan

on DCReport's David Cay Johnston says US President Donald Trump's reaction to GM layoffs shows he doesn’t get automakers, technology or his own new tax law
Actually fill a super tanker. However he does seem to be a master of debt and knows how to skin a mark, give credit where it is due.

by: steven

on DCReport's David Cay Johnston says US President Donald Trump's reaction to GM layoffs shows he doesn’t get automakers, technology or his own new tax law
In the interests of Adrian Orr's call for a broader perspective, here's an article from a couple of years ago; Why banks should be holding more capital against their housing loans

by: Gareth Vaughan

on Governor Adrian Orr says RBNZ to impose capital standards on banks that match the public’s risk tolerance
Tax avoiders dream. Time to get out the white board marker and start dreaming up "arrangements";)

by: HeavyG

on Tax Working Group members Craig Elliffe and Robin Oliver discuss the challenges of creating a comprehensive Capital Gains Tax that excludes the family home
The family home exemption is a mistake on several levels.
Most importantly, it puts yet another disadvantage on renters.

by: Ryan G-M

on Tax Working Group members Craig Elliffe and Robin Oliver discuss the challenges of creating a comprehensive Capital Gains Tax that excludes the family home
If the family home is exempt it's a mistake. More money will flow into the family home than otherwise would to create very expensive upmarket suburbs as is the case in Australia. If there were no exemptions then everyone would have skin in the game.

by: Shoreman

on Tax Working Group members Craig Elliffe and Robin Oliver discuss the challenges of creating a comprehensive Capital Gains Tax that excludes the family home
30% deposit for investors = 17% increase in borrowing capacity compared to 35% deposit.
Places already popular with investors (where investors maybe the marginal buyer/ price setter) such as PN at present have just been re-valued 17% higher across the lower valued investor friendly stock. Cheers rbnz

by: Simon

on The Reserve Bank is loosening the 'speed limits' on high loan to value ratio lending and says further relaxation of the rules is likely in future
Most NZers don't appreciate how important the bank capital adequacy ratios are or the impact on our day to day lives. The RBNZ's use of aspects of the Basel rules indirectly determines who are financial winners and who are losers in NZ.
Currently the winners are home owners YAHOO (sarcasm) and the losers are farmers and business owners and their employees and suppliers.

by: Wilco

on Martien Lubberink questions whether the RBNZ has become too philosophical about bank capital
This article demonstrates that we farm immigrants with the same skills that we farm cows.
As usual, little foresight or consideration of our long term society or environment.
Pehaps we could discuss a 100 year impact in conjunction with these sorts of articles.

by: positivelywallstreet

on A look at the economic indicators that show the Government should keep avoiding introducing measures to majorly reduce migrant numbers
"Compulsorily buy private land" Watch out land bankers, there's now plenty of land!

by: Retired-Poppy

on Phil Twyford progresses Nick Smith's plans to give central government the power cut through local planning rules to develop major urban housing projects
Our biggest export revenue generator was Home Ownership but Labour snuffed that one out with the Foreign Buyer Ban.

by: Nzdan

on Rising house prices have more than offset falling interest rates in 11 of 12 regions over the last six months - Home loan Affordability Reports
1) Skim read the article
2) Miss the actual process outlined
3) Assume the bank is so dumb they never thought of the risks
4) Post witty reply

by: Tom Foolery

on ASB, like BNZ and The Co-operative Bank, adopts facial recognition technology to enable new customers to apply for a bank account in 15 minutes without entering a branch