Interest Rates

[Perry]

the carrot and stick approach would be
to make property less attractive
and saving more

If you or any other forumite had to sum it up,
in one brief paragraph, why is it that property
leads the savings stakes? Why don't people
trust the share market? Why don't people
make greater use of TDs? Or on-line call ac-
counts, which are often only half a percent
less than a reasonable TD?

[speights boy]

Tax
Leverage
Lack of interest in education about shares, and how to value a company, and read their reports. (still believe it's the same as 1987)

Dunno why re online call versus TDs.
Perhaps because some have been caught out by lack of discipline and breech the terms to qualify for the bonus interest.

[Eugene]

Because of this sort of stuff:

http://www.nzherald.co.nz/brian-gaynor/news/article.cfm?a_id=14&objectid=11358864

http://www.nzherald.co.nz/brian-gaynor/news/article.cfm?a_id=14&objectid=11362716

You can educate yourself all you like but you can't foresee this sort of stuff.
Also look what management/directors get paid. Take property investment companies for example, do their investments have that much of an edge over those of the little private investors to absorb all these salary or director costs? Sometimes. Sometimes not.
But sometimes something ghastly happens. And you can never predict.

[eri]

exactly

property has proven to be the gold standard of investments

the least troublesome, best performing, most reliable generator of income and fighter of inflation

is easy to understand, to get into, get out of and with few to clip the ticket

the problem in the democratisation of property investment

too many people are swamping the boat

the majority outside of the boat are pissed they missed and demanding change

those controlling the boat are all ears as their responsibility is to everyone

not just the smart ones able to delay gratification, set goals and achieve them

the obvious solution is to build more boats

those treading water want them to be HERE, right next to or on top of the current boat located over the best fishing spot

but they have to be build somewhere else

and people to to swim to them

and then struggle to get in

even IF

they scream it's unfair

[speights boy]

too many people are swamping the boat

Including many in far flung off shore lands.

those controlling the boat are all ears

Including to those in far flung off shore lands.

[eri]

do we want state controlled housing?

do we want control of private assets to be mismanaged by the state?

you might

i don't

should the main aim of gov.

be shifted from keeping nz in a competitive world position

to some sort of socialist commune island backwater?

[speights boy]

There you go, off on extremes again.
I'm actually surprised we didn't get another North Korea rant thrown in there.
Although, I guess

socialist commune island backwater?

does actually tick that box.

Thank you for once again providing the Sunday morning funnies, which seem lacking in most newspapers these days.

[eri]

if you don't like my posts

put me on ignore

which is probably what i'll do to avoid your ad hominiums

[speights boy]

I enjoy your posts eri.
You are one of my favourites.

oh, by the way :

I think there should be restrictions and regulations regarding non-resident foreigners buying residential property in Auckland.
Because I happen to agree with you when you post.

too many people are swamping the boat

[Davo36]

to some sort of socialist commune island backwater?

I did like that.

As to whether the govt should control housing, well:

1) Local government already does - this is why we have the problem we do.

2) If they just got out of the way, and let people subdivide land whenever and wherever they want to, you'd have an actual market. Like they do in Germany where house prices have been stable for years.

[Perry]

I suppose, apart from legislation, PMs, Council and
assorted do-gooders, property investment is one
of the investment classes over which the owner
has the most control.

[speights boy]

^ You could probably add insurance companies following a major natural disaster to that list.

[Perry]

As I dimly grasp it, aren't 'natural' disasters
excluded as acts of some deity construct?

[speights boy]

As I dimly grasp it, aren't 'natural' disasters
excluded as acts of some deity construct?

Ahhh....No, not necessarily.
In most cases they are covered.

[Perry]

Oh. I thought such things were excluded.
Were they once, but no longer? Things
like floods, or hailstorms or the like.