Why house prices are up and ownership is down

[muppet]

Why house prices are up and ownership is down

8:02 AM Friday Jul 18, 2014

New Zealand house prices are very high, compared to history and globally, according to a new report. Photos / NZ Herald.
Blame it on the Kiwi culture of home ownership and housing investment. Blame it on the tax system. Blame it on easy access to mortgage finance.

Whatever culprit you choose, the result is the same - high house prices, compared to our incomes, compared to rents and compared to other countries.
"There is no easy fix to New Zealand's overvalued housing market," says Shamubeel Eaqub, principal economist at the NZ Institute of Economic Research.

Read more in the Granny at

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11293868

[spaceman]

LOLZ....this guy must be one of the secret inner circle.

We need to remove the tax advantages of real estate investment.

He knows of the secret tax advantages that not even the IRD are aware of.

Or he is a sheltered academic with zero real world experience.

Or option 3, a blithering idiot with no clue whatsoever and probably spends most of time at davidicke.com or reading his subscription to "uncensored"

Take you pick

Cheers
Spaceman

[Maccachic]

Isn't he the same guy who suggested renting is better cos he can live in a mansion he couldn't afford to buy?

[BigDreamer]

Isn't he the same guy who suggested renting is better cos he can live in a mansion he couldn't afford to buy?

Yes - I always found all his articles rubbish. I'm surprised there is no other economist that nz herald could interview.

[Maccachic]

Probably his buddy so easy to get a story out of him when they are in need

[speights boy]

If yields are so low, why would 45% of sales be to investors ?

[PTILoveYou]

An opinion from a person who doesn't own a residential property.

Salt anyone?

[ramong]

Since when was paying income tax on profit from property an advantage?

[donna]

It's inaccurate to generalise saying 'NZ House Prices are high' when in Wellington this is not true nor is it true for many regions of NZ.

cheers


Donna

[Bob Kane]

"There is no easy fix to New Zealand's overvalued housing market," says Shamubeel Eaqub, principal economist at the NZ Institute of Economic Research.

The reason there is no easy fix is because the housing market is not overvalued.
The NZ housing market is quite different to other countries.
As long as the NZ market is different, then the NZ housing/income/rent level ratios will be different to other countries.

[Davo36]

The reason there is no easy fix is because the housing market is not overvalued.
The NZ housing market is quite different to other countries.
As long as the NZ market is different, then the NZ housing/income/rent level ratios will be different to other countries.

Bob, surely you don't believe the "It's different this time..." argument???

How exactly is NZ any different?

[Bob Kane]

How exactly is NZ any different?

Didn't you post that in Germany an owner can build almost anything on their property and the council can't stop them? (as long as it's well built/safe).
And don't you often complain about the council causing you grief by making you jump through lots of hoops/silly requests before they sign off on your developments?
I gather the council rules/costs are worse in NZ than other countries.
This adds to the cost of developing/building in NZ.

[Davo36]

Didn't you post that in Germany an owner can build almost anything on their property and the council can't stop them? (as long as it's well built/safe).
And don't you often complain about the council causing you grief by making you jump through lots of hoops/silly requests before they sign off on your developments?
I gather the council rules/costs are worse in NZ than other countries.
This adds to the cost of developing/building in NZ.

Umm yes, ok, Germany I would accept is different, but what about Ireland, Spain, the US etc.?

Or NZ in 1987?

And yes building is difficult, but getting easier thanks to the government.

I reckon all we need is for the Chinese to stop buying, or one of many unforeseen things (black swans) and we'd be toast.

[elguapo]

I gather the council rules/costs are worse in NZ than other countries.
This adds to the cost of developing/building in NZ.

NZ's planning system is almost identical to that of the UK. The UK can also be very strict in requiring new dwellings to be the same as existing, same materials, windows etc.

[Bluekiwi]

SE is a true muppet in my book.

He may have true smarts and a high intelect but he certainly doesnt have street smarts and wisdom, to get ahead in life for his family and himself.

He had the ability to buy a PPOR (I think he lives in Auckland) about 6 or 8 years ago, when I first heard his name and his moaning and grumbling.

Out of principle like his dodgy mate weekend at berneys he didnt want to stay in the obviously rising auckland property and now moans about auckland house prices incessantly.

He is really annoying, frankly I think he should be sacked looking at the post he holds.

And now he is playing battleship trying to sink small town NZ, by putting the boot into certain towns and calling them Zombie Town's.
How would you feel if your town was noted in his new book as dead and dyeing.