And this is how property prices will continue to rise in real terms
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Financial Armageddon!!
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Originally posted by eri View Postif the price of new builds were to drop suddenly
the house of old houses might drop
but i can't see anything that council or gov. are doing that does anything but increase the price of new builds
Question: Under what conditions can the price of new builds drop suddenly?
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If money supply is drying up, I'd suspect price drop on new and old builds
but that would take another GFC - is it possible?
Originally posted by Chris W View PostQuestion: Under what conditions can the price of new builds drop suddenly?
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Originally posted by Chris W View PostQuestion: Under what conditions can the price of new builds drop suddenly?
If you could produce a lot of free land then you could drop the price of a new build.
If you could halve the cost of materials and/or labour you could drop the price.
Could a financial squeeze do it?
Nope.
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Originally posted by Don't believe the Hype View PostAnd this is how property prices will continue to rise in real terms
https://www.9news.com.au/national/mo...e-7121e4315c8e
They just keep coming up with ideas to lend more and more and more.Squadly dinky do!
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Originally posted by Davo36 View PostYep, what will they do next.
They just keep coming up with ideas to lend more and more and more.
Banks do face constraints on lending. If you know what constraints they face and the conditions in which they may reach their limits, then you will understand under what conditions there will likely be a credit constrained environment.
Look at the banking crises during 2008/ 2009 period in countries such as US, Greece, Ireland, Iceland. Or look at late 1980's / early 1990's in NZ when BNZ required recapitalisation from the NZ Government.
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if the next financial crisis
is as big, or bigger, than the last one
and if it happens in the next couple of years
yes
we could see another big round of mortgagee sales and teetering banks
downtown auckland is covered in cranes and road work cones, signifying we may be at peak building...
everyone should be prepared for another crash since we are overdue and are starting to see many of the early signs
Parts of the U.S. yield curve have been inverting since last November. Now, the key 10-year yield is lower than the 3-month T-bill yield. ... Currently, yield curves are inverting around the world. The Euro area, the U.K., Switzerland and Canada all have inverted yield curves at shorter maturities.May 30, 2019
https://www.forbes.com/sites/frances.../#5d4fb2466d04
but not sure if anyone should count on mortgagee sales as a way of bootstrapping themselves out of renting and into home ownership
the banks probably won't lend more to already highly leveraged investors, or renters without large deposits
but if the next big crunch happens when the coalition are on watch
who knows what crazy actions "solutions" could be floated and possibly imposed
history doesn't repeat, but it does rhymeLast edited by eri; 02-07-2019, 01:27 PM.have you defeated them?
your demons
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Business confidence continues to slide, with New Zealand companies the most downbeat in a decade, since the height of the global financial crisis.
The Quarterly Survey of Business Opinion (QSBO) for the June quarter, released on Tuesday, showed a fall in general confidence.
More importantly, the majority of businesses surveyed said they expect their own activity to contract in the coming quarter.
ASB responded to the news by predicting that it now expected the Reserve Bank to cut interest rates twice,
both at its next meeting in August and again in November, to a new record low of 1 per cent.
https://www.stuff.co.nz/business/113...to-stall-speedhave you defeated them?
your demons
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australia
After the announcement, JP Morgan predicted another two cuts, taking the cash rate from 1% to 0.5% by mid next year.
It said the risks to this view were that the bank “gets there earlier, not later”.
https://eveningreport.nz/2019/07/02/...w-of-1-119744/have you defeated them?
your demons
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