Editors choice comments
Less landlords does not mean less houses. It means more owners and less renters.
It will be positive for the housing shortage, and positive for the economy when former or potential landlords invest in something productive instead.
... what surprises me is how slow it's been for alternative forms of financing to take a bite out of the big banks lunch ...
These mega-firms from Australia are feasting mightily upon the highly leveraged property and farm owners of New Zealand ...
... where's the creative disruption at , innovative small firms and products , little feeders taking multiple chomps out of the behemoths' banquet ?
by: Gummy Bear Hero
We had nine years of a four headed coalition. National couldn't pass any laws on its own. Yet when labour is in power suddenly this is a problem wasn't a problem for Clark either. What is it with reporters these days and their allergy to MMP
A good top ten. I was a AI doubter until the recent improvements in face recognition and language translation.
A useful comparison to long gestation of AI is the development of the railways. That took a couple of centuries to develop boilers that didn't explode, efficiency so it could carry its fuel and lightness so the rails didn't snap. When they did arrive it was quietly in 1825 Stockton Darlington and then with massive publicity 5 years later at the Manchester Liverpool line. Did the first passengers in 1830 expect rails crossing the USA and India within their lifetimes and speeds...by: Lapun
So far the government measures to tackle the housing problem remain as planned moves. Ring-fencing,extension to bright-line test, ban on letting fees, foreign-buyer ban.None have actually crystallised into legislation.
And the Auckland 2017 rating valuations remain on paper.The actual rates payable on the steeply uprated valuations would only kick in later,perhaps July onwards.
So the slump now may be the market pausing with bated breadth, blood-letting staunched ,albeit temporarily.
What happens when the measures & rates actually kick-in? I am busy crystal ball gazing & the initial...by: Jaf
An interesting article. I know whats easiest. Trawl the saleyards, buy what you see you can make money from. Dont worry about the fancy pants ideas. Try and live life without getting too bogged down in finding that new angle. Best left to the more energetic youth. If only there were some young farmers out there ...
The diplomatic relationship between China and the US at the moment is like a wife and a husband who cannot afford a divorce.
What can't be dismissed is that if major banks are predicting decline, this means that they will be tightening their lending criteria. Banks adjust to the risks they perceive, whether you agree with them or not. If they are perceiving risk and downside, this will affect the housing market, irrelevant of buyer/seller sentiment. You can only buy with what the bank will lend and when banks perceive downside, they lend with more caution.
Google "mortgage fraud NZ" and you will find the results are page after page of headlines reporting millions of dollars of mortgage fraud over the last few...by: gingerninja
by: fat pat
An interesting article. It would be good to see some similar articles based on comments (as there are some gems out there)
The important thing with comments is
a) To remember they are just an opinion, and
b) You/me/we have no choice but to take them at face value - i.e. you don't have the full back story of the poster, or an understanding of what experiences they may have had to lead up to that comment.
c) Also they only provide a limited insight into the opinion. I don't think it is valid or fair to expect detailed analysis, rebuttal, citations, etc... in the comments section. Agree or...by: Noncents
I wonder if Kade is making the same mistake many of us also make - taking part of a comment out of context, and then jumping to a conclusion from that position. For example my comment about the trucks, while including the accident stats, was more about the fact that trucks are subsidised, by having the damage they do to the roads paid for by all road users. Subsequent comments clarified this. But despite the apparent polarised perspective i do understand that ALL trucks cannot be taken off the roads, but was only suggesting that a more balanced approach that ensures rail, which is also a more...by: murray86
I will admit this move has given me mixed feelings. I have enjoyed the freedom and ease of living that the oil industry has offered through my lifetime, but I do know that we cannot continue doing this, and not being fully informed on what we do for alternatives, it makes me a bit nervous. I think I feel a bit relieved that we at least are prepared to do something, even though, at the same time, I have a measure of fear.
The transition from oil and gas will not be as easy as the transition to it was, but I think we all know, no matter how little, that we cannot continue on the same path....by: PocketAces
by: ngakonui gold
As someone with skin in the 'AI' game, I regularly chuckle at the spin from self promoted developers of AI for some professions. In almost all cases, their products are simply efficiency refinements of existing processes; useful and needed, but not AI.
We are involved with two professions and deeply analyse the offerings of our competitors. All are innovative, a small number evolutionary, and they will cut labour costs and modify the way those professions operate. But NONE, are genuinely disruptive AI; despite the claims of their proponents, earnestly and falsely repeated at trade shows and...by: middleman
I think it would be dangerous to relax the LVRs until interest rates start rising again. At the moment alot of people out there are fooled into believing that interest rates can stay this low indefinately.
Allowing more leverage on the cusp on new pressures that will undoubtedly have further downward pressure on prices would be enticing those into situations that can lead into a negative equity situation.
By the time interest rates rise (probably mid to late this year due to US OCR rises) the foreign buyer ban will be in place, immigration will have fallen and a clear view on where the market...by: theglc
An increase in mental health spending would help a lot. The number of recent suicides of people that I know is rather concerning. I don't think GDP growth was helping their wellbeing at all.
One of the reasons for GDP being pushed so much is that until recently it did improve people's wellbeing significantly. It is the whole point of economics.
What's so Orwellian about making people's lives better, as opposed to 1984 using propaganda to say that everything was fine or someone else's fault when things were going badly.
I cant see how this law is anything but sensible. In what possible way could it be argued as reasonable to offset income losses against a completely separate entity even while you make capital gains? Its just fake losses passed through and locked in. What if everyone offset their income to 0 and lived of capital gains... Frankly the law doesnt go far enough.
Dont ever be intimidated by banks, they are a a business just like the fruit and veg shop on Dominion Road ........... they need to make a profit and make sure their customers stay with them .
As a Baby -Boomer , I took out my first mortgage in 1981 at a rate I cannot even remember ............. but it was expensive , and there was NO NEGOTIATION whatsoever .
I was called in to sign the docs , and this old bugger who had me signed up had an office with dark wood panels with bookshelves . I wondered why a banker would need all those books , it looked to me like it was for show
He had a...by: Boatman
I've just refixed in the last week. I made a low offer to my bank - well below carded special, and below my previous rate - that I fully expected to be rejected and negotiate to a mid ground rate. But they sat on it for 24 hours hours and then accepted. Go lower than you'd think.
Funny to watch this all play out.
Moaning about not reaching 100,000 in the first month of the new Government, then they'll be moaning about the buildings, then there will be moaning about build quality, moan, moan, moan, moan, moan.
This Government might actually achieve something close to what it has set out to achieve - so I interpret 90% of the moaning as "oh sh*t they might actually increase housing supply and reduce house prices"
by: Zombie ponzi
Yes, I read the ANZ report as follows:"We appear to have reached maximum extractive capacity in Auckland. However, there is plenty of unused extractive capacity to go in the regions, and we expect to take full advantage of this."
The banks are the main beneficiaries of rising house prices as their income goes up with the increase in household debt. They are the primary mechanism whereby lower interest rates are transferred into higher capital values.
However, in the larger world, the tide has turned:https://fred.stlouisfed.org/series/USD3MTD156N
by: Brock Landers
It's certainly true that many citizens like to put their hands out for more spending (by other people) on the things they like, and that many pollies like to throw (other people's) money at lovely cuddly things. They accompany this with remarks like "lovely cuddly things, no matter what it costs" and "how can you put values on such lovely cuddly things" and "lovely cuddly things are more important than mere money".
If Treasury get this initiative right - which is a very substantial "if" - such irresponsible behaviour will actually become more difficult, not less. That is because it will...by: Ms de Meanour
Interesting read. It does make one wonder if the increasing party control will at some stage lead to civil unrest. Although, as Rudd points out, the party came into power through the gun .... and they still have the most guns.