Originally posted by JBM
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NZF Min wage goal $20ph Labour min wage 16.50ph .....so we can count on min wage increase, which you guessed it will add inflationary pressures...
Now we've had one of the biggest increases in inflation in NZ land to incomes in recent times 2009-2017 during a very flat deflationary period (unlike the early 2000's where we had inflation across the board with the reserve bank increasing lending rates 9% etc to combat it..
Like a perfect Storm its all coming together to make some very nasty times ahead ...
-Record High household Debt to income levels
-Low wage economy ...(we spent the money on more expessive land and not on core businesses.....but property speculation , investment rentals etc thats NZ #1 business>>>
-Record low lending rates for an extended period (that must be forced to re-adjust to stop dollar dropping to far)
-New pro Tax Govt ...Big spending
-Crashing NZD value
-Property values the vast majority of Kiwi's are ticked to the eyeballs in at Bubble highs>>10-20% correction ??
Really National keeped the whole game going by forcing the banks to continuing to lead easy money for new builds and open door immigration policy...Lab+NZF are going see how it works to close the door by least half and add a few extra taxes
= friends of my wife have just finished a ripping stunning 150sqm pad locally leaving them with over 700k in debt on one income which you guessed it comes is from the husband 45+ that works in the NZ property sector as stonemason ...with three young kids ....
Other friends also 40+ age 550k in new debt to average 3 bed home .. two average incomes but also tied to the local Property sector.
I'd say the vast bulk of new loans over the last couple of years will be much the same locally ...all get paid from the continued building boom
which they are also part of....
What happens when rates are forced to 6% then 7%???
Now we've had one of the biggest increases in inflation in NZ land to incomes in recent times 2009-2017 during a very flat deflationary period (unlike the early 2000's where we had inflation across the board with the reserve bank increasing lending rates 9% etc to combat it..
Like a perfect Storm its all coming together to make some very nasty times ahead ...
-Record High household Debt to income levels
-Low wage economy ...(we spent the money on more expessive land and not on core businesses.....but property speculation , investment rentals etc thats NZ #1 business>>>
-Record low lending rates for an extended period (that must be forced to re-adjust to stop dollar dropping to far)
-New pro Tax Govt ...Big spending
-Crashing NZD value
-Property values the vast majority of Kiwi's are ticked to the eyeballs in at Bubble highs>>10-20% correction ??
Really National keeped the whole game going by forcing the banks to continuing to lead easy money for new builds and open door immigration policy...Lab+NZF are going see how it works to close the door by least half and add a few extra taxes
= friends of my wife have just finished a ripping stunning 150sqm pad locally leaving them with over 700k in debt on one income which you guessed it comes is from the husband 45+ that works in the NZ property sector as stonemason ...with three young kids ....
Other friends also 40+ age 550k in new debt to average 3 bed home .. two average incomes but also tied to the local Property sector.
I'd say the vast bulk of new loans over the last couple of years will be much the same locally ...all get paid from the continued building boom
which they are also part of....
What happens when rates are forced to 6% then 7%???
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