Interest Rates

[speights boy]

What sort of things would you include
in the definition of 'doing OK?'

Our Finance Minister provides an idea or two.

From: http://www.youtube.com/watch?v=Nfw0evEBd1A#t=85

[Perry]

Yawn

Where Do I change Channels?

The underlying theme seems to be getting and/or keeping wages down.
Part of Blengish's desire to make NZ into the labour sweatshop for Oz.

[speights boy]

There are certainly some people who don't appear happy unless they are moaning about gummit.

Most of the companies I have been investing in over the last 18 months appear quietly confident of their growth plans.
Many are most certainly producing the appropriate results thus far.

Not my words, but this from another forum

2014 will a tough year.
Tough for all you depressed victims, trying to stay negative in the face of a tsunami of good news!

[mrsaneperson]

Kiwibank are the cheapest lender currently offering 5.65% reducing to 5% when they apply a 0.65 basis points discount for certain customers.

[Perry]

I'm neither depressed nor negative. You mentioned companies
outlooks. I mentioned wage and salary-earners outlooks. Why
do you think the gummint has to tell people how good things
are? Shouldn't it be obvious? It just might be that things were
not nor are not good enough for wage and salary-earners to
have noticed. What is obvious is that it's election year and
the spin doctors will be in an over-drive frenzy.

There have been many observations on the PT Forums that
rents are lower than they should be because of people's in-
ability to pay more. Why would that be, I wonder, given that
your company contacts & Blenglish say everything's rosy?

[elguapo]

There have been many observations on the PT Forums that
rents are lower than they should be because of people's in-
ability to pay more. Why would that be, I wonder, given that
your company contacts & Blenglish say everything's rosy?

What 'should' rents be? You can much more easily argue house prices are much, much higher than they 'should' be.

[Perry]

Very true. Theory of Relativity, anyone?
ROI, ROC, comparable investments, you
name it. Why are they "safe as houses?"

[mrsaneperson]

We are at the peak of a grand illusion.

Rents have barely risen by 5% in the last 5 years; rental return in relation to what investors are paying for their property is at an all time low; property prices in the Auckland area have risen around 20% in 1 year. Talk with most people in small business they are not doing well this year compared to last year generally. This is at odds with the rise in the governments tax coffers which has been created by the cashless economy that has occurred exponentially in the last few years driven by visa and online banking. Less tax evasion is a result.The blackmarket cash economy has virtually disappeared. This government is rejoicing on a false premise

The largest growth industry in NZ is building & repairing houses in Christchurch ; the govt is paying billions for this out of our taxes from the aftermath of earthquake destruction. It is the second most expensive earthquake disaster in world history. So, their is another false premise. Growth based on destruction.

Interest rates havent gone up yet because the illusion is still in play.

Key is trumpeting an illusion. And many are buying it.

[speights boy]

'Milk man' NZ going great shakes

It has been described as the battle between the milkman and the iron man, with the humble dairy deliverer likely to come out on top this year.

As ''iron man'' Australia grapples with below-trend growth amid a wind back from unprecedented levels of mining investment, ''milkman'' New Zealand is set to be one of the best-performing economies in the world on the back of strong house prices, rising terms of trade and soaring confidence.

''Unlike Australia, where the boom days of the record terms of trade and mining capex are over and there are concerns about how to rebalance the economy, the main macroeconomic challenge in the New Zealand economy is to ensure the economy doesn't become overheated.''

[Perry]

New Zealand is set to be one of the best-performing economies in the world on the back of strong house prices . . .

Oh dear, soaring house prices make for a best performing economy?

In the bowels of the beehive, Shonkey to secretary:
get RBNZ Guv Wheeler on the phone, please.

[Davo36]

Oh dear, soaring house prices make for a best performing economy?

Yep, for us property investors at least!

[elguapo]

"The Reserve Bank is of the view that anyone with more than five properties, regardless of whatever other income sources or revenue streams may exist, should be treated as running a small business. To avoid further confusion, this would mean treating those loans as corporate property loans."

http://www.interest.co.nz/property/6...sonal-loans-an

[Wayne]

"The Reserve Bank is of the view that anyone with more than five properties, regardless of whatever other income sources or revenue streams may exist, should be treated as running a small business. To avoid further confusion, this would mean treating those loans as corporate property loans."

Don't like the sound of all of that.
Anyone got their head around what it could mean to people?

[PC]

It means use a few more "structures".
If the holding company has 5 properties - start another one.

Sort of like a first home buyers 20% deposit being funded 100% by borrowing off credit cards, Parents, etc.

[Davo36]

What it reaally means to me is that there are literally hundreds of people in Wellington sitting around in committee meetings, producing proposals, coming up iwth mathematical models, writing reports and so on - AND THEN changing their minds and doing all of the above and more again and again and again. Forever.

And we should basically just ignore it all.