Financial Armageddon!!

[elguapo]

I suspect that such talk will prove to be empty,
given the number of people needing a roof over
their heads.

There is no one lacking a roof over their head in Auckland.

If it can't go on forever, it will stop.

[Perry]

There is no one lacking a roof over their head in Auckland.

Perhaps think of it as the number of heads per roof?
We often hear of several families under one, now.

[elguapo]

Perhaps think of it as the number of heads per roof?
We often hear of several families under one, now.

The number of heads per roof is reducing. Families sharing houses in Auckland is almost exclusively related to a lack of education and employability, it's not a housing issue. When house prices are accelerating a multiple times the rate at which rents are increasing there is simply not a housing shortage.

[Perry]

The number of heads per roof is reducing. Families sharing houses in Auckland is almost exclusively related to a lack of education and employability, it's not a housing issue. When house prices are accelerating a multiple times the rate at which rents are increasing there is simply not a housing shortage.

On what basis do you make such sweeping / multiple assertions?
E.g. Scarcity usually leads to higher prices and vice-versa.

[elguapo]

On what basis do you make such sweeping / multiple assertions?
E.g. Scarcity usually leads to higher prices and vice-versa.

Number of people per household has been falling for decades. It's a fact.

Rents in auckland are not increasing at anything like the same rate house prices are, that tells you very clearly there is no actual housing shortage, or at least not on the same scale as people believe. If there really was a shortage there would be endless puff pieces in newspapers about people being forced to live in Hamilton, living in tents etc. If there really was scarcity rents would be exploding.

[Perry]

Number of people per household has been falling for decades. It's a fact.

Just because you say so?

Rents in Auckland are not increasing at anything like the same rate house prices are, that tells you very clearly there is no actual housing shortage, or at least not on the same scale as people believe. If there really was scarcity rents would be exploding.

Dwelling supply and demand is one thing; ability to pay rent is another.

If there really was a shortage there would be endless puff pieces in newspapers about people being forced to live in Hamilton, living in tents etc.

Quite a few already commute from Huntly and Hamilton.

What I'm saying may seem provocative; but that's not at all my intention.
What I'm getting at is that just because someone says so, does mean it is so.

For my seven years in Auckland, I had a mortgage, because - even @ 20%
interest rates, it was still much the same as my rent payt. would have been
in the same or comparable locality. I only know those things because it was
first-hand experience. However - in the absence of any corroborative data -
statements like:

Rents in Auckland are not increasing at anything like the same rate house prices are, that tells you very clearly there is no actual housing shortage

. . . are just speculation and/or opinion.

[elguapo]

Just because you say so?

google is your friend. It's a long term trend in all western countries and Auckland is no different.

are just speculation and/or opinion.

Well, yes, that is kind of the point of a forum is it not? I could graph the divergence of rents to house prices and house prices to GDP, then look at macro trends in terms of commuting distances, but I really can't be arsed. I've also seen all this stuff before, predictions of immigration numbers driving housing demand and meaning shortages, only for it to disappear almost overnight, even though the immigration carried on.

Even if I did all that, it's really just speculation and opinion with a garnish of justification.

[Davo36]

Well, true demand or not, my wife told me this today:

She works for an accounting firm. Young guy there told her how they've signed up to buy a house in South Auckland:

1) He wanted to offer above purchase price, agent suggested he go in at purchase price.
2) So he did but also said "I'm negotiable" i.e. he will go up if he needs to.
3) He removed all conditions relating to LIM, building inspection etc. and only left in finance.
4) He (and his partner) did all this because they've missed out on several houses already and don't want to miss out on another one.

And the kicker? They're not even going to live there, it's a rental... They can't afford to live there.

So this is the sh*t people are doing to get on the housing ladder.

[speights boy]

He (and his partner) did all this because they've missed out on several houses already and don't want to miss out on another one.

And the kicker? They're not even going to live there, it's a rental... They can't afford to live there.

So this is the sh*t people are doing to get on the housing ladder.

"You smell that ?
Do you smell that ?
Fear son.
Nothing else in the world smells like that.
I love the smell of fear in the morning."

[Damap]

What twaddle. The Herald really losing its grip.

[Davo36]

"You smell that ?
Do you smell that ?
Fear son.
Nothing else in the world smells like that.
I love the smell of fear in the morning."

Haha, yep, the fear of missing out alright.

[chrisgoh]

Good to see newspapers, economists, politicians and doomers warning the public about the huge bubble in Auckland property market. Uncomfortable to see property price in Auckland shoot up this way, prefer gradual and steady increment.

If correction do materialise in the near future, many of us are ready to go in again.

[eri]

Fears that Greece could default and abandon the euro currency group sent shockwaves through global markets on Saturday.

After being down nearly 360 points, the Dow Jones industrial average finished down 279.47.

US Treasury Secretary Jacob Lew said a Greek default would "create immediate hardship" for Greece and damage the world economy.

Several countries criticised the US for the failure of Congress to pass the legislation needed to put into effect IMF reforms that would boost the agency's capacity to make loans and increase the voting power of such emerging economic powers as China, Brazil and India.

http://www.nzherald.co.nz/business/n...ectid=11435158

[Wayne]

Greece doesn't want to pay the several billion payment it has to make in a week or 2.
They want another loan to help them out - borrow more to pay your loan?

[eri]

they were trying to convince the germans

that their debt should be forgiven as war reparations

germans were like...

focus on the future

start paying taxes

break inefficient monopolies

make sure all public servants being paid, actually exist as individual people and go to work everyday