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**Perry** · 25-08-2019, 09:06 AM

A gaggle of articles on the subject, all dated 25 Aug 2019 . . .

Proportion of Auckland property sellers making a loss almost doubles in a year

As the housing market stumbles, should we be celebrating?

Sidelined property investors are starting to return as housing market settles

**Beano** · 29-08-2019, 01:14 AM

Originally posted by techbashanz View Post

I was looking home on rent in Auckland but rent was too high. I can't afford that much amount. Then I lived with my friend on sharing basis. Government need to fix the rent amount for tenant. So, everyone live freely and easily.

Perhaps you can share the room with more people to make it more affordable.
Three to a room will save you more .
What is your income ?

**Perry** · 29-09-2019, 07:30 PM

Originally posted by flyernzl View Post

I would be really interested in seeing some hard facts on how the Vancouver experiment is working out in the medium to long term.

Did you ever get an answer to that question of yours?

**OnTheMove** · 30-09-2019, 10:03 PM

Originally posted by Wayne View Post

How do you suggest that the Govt 'fix' that?

Next time we have a GFC dont print money to save us from an Ireland situation, take the hit, which will lower rents.

We have to lower a 150%+ debt to GDP ratio. It will take time but it also requires housing to lower. We reached our maximum affordability and Auckland is just adjusting, its not bursting yet imo. It will take a serious shift in international lending for us to bomb another 30% Price.

Raising wages is also another factor. This means hitting our big employers, but needs to occur. Our price to income ratio is off the hook literally.

We have low unemployment but what we really need is more small business supported, to become medium sized production (not retail). That will help the GDP issue.

I think when the time is right all of this will just naturally occur.

We have a whole generation growing up thinking 25%PA growth is normal and sustainable. They then borrow $800k, great they made money for a year which has now dissapeared. What happens if interest rates hit 20%? Unlikely in the near future but that generation has no concept that it could occur and that they should be paying down as much of the personal debt as fast as they can, then locking in a rate when ship hits the fan.

I think thats how the Govt should fix it, it is Labour though, not the brightest economics minds. But they will implement a lot of that.

For now there is isnt a lot the govt can do but press employers for the income to price ratio so people can afford a ship box in Auck.

**OnTheMove** · 30-09-2019, 10:57 PM

Originally posted by Perry View Post

A gaggle of articles on the subject, all dated 25 Aug 2019 . . .

As the housing market stumbles, should we be celebrating?

I like this one Perry, a great dose of captain duh and a huge dose of cynicism :-)|

"Or will they do the rational thing after years of banking Lotto like wins on their capital gains, and take the flat housing market - and global uncertainty -as a sign that it's a good time to hunker down?"

Just on building and quality.

Know way in hell NZ builds better quality homes than Aus. The only well built homes are the ones prior to 2000 and the housing booms. But even then, double brick houses in Australia are substantially better built, no polystyrene render falling off he sides of the house ala 60% of Gulf Harbour town houses.

Compare to Germany, double brick, under floor and central heating with HRV type systems. Granite an Marbel isnt a huge cost. And double glazed is MINIMUM, triple glazed is common.

Of course Aus and Germany have older houses that may need reconstruction but no different to NZ.

I grew up in a weatherboard home built in 1920, the original tyles on the roof and aside from having to remove the chimney as became a fire hazard and slightly bowed roof rafters, it is still mint with its Kauri floor boards.

The same can be said of QLD weatherboard cottages. Made to allow air to flow under the house, brilliant. Only problem are the beams under the houses are too hard, wood. I was renovating one in Sandgate Brisbane. I couldnt drill through the would with my impact drill and diamond tip bit. Made redoing the down pipes a pain. But again, brilliant gorgeous orginal floor boards.

Its either good old homes or good newer homes in Aus. NZ is its good homes up until short cuts due to the use of shoddy materials.

**Perry** · 01-10-2019, 06:38 PM

There is so much to debate about this - much of which has been discussed on there forums before - that there is little point in re-hashing it.

The W'gton woodenheads can sit in their ivory towers and ponder this, that and the other piece of legislation (considered on the basis solely of getting re-elected), but "the market" will beat them, each and every time.

Nordmeyer's 1957 "black" budget was a consequence of promising the electorate something that was both unrealistic and unsustainable., in order to get elected. Next general election, Labour shuffled off to the political wilderness as a consequence.

These days, PIs, especially those on this forum, just smile quietly to themselves at the machinations of the W'gton mental Neanderthals and carry on. They can see past the charades and games being played. Well, most of them can, anyway.

**eri** · 21-11-2019, 08:18 AM

this guy gets it

the correct solution to a lack of housing

is houses, not hammering housing providers!

"Until the Government strikes the root of the housing shortage by reforming infrastructure financing and the perverse incentives that lead councils to treat residential growth as a cost to be minimised,

tenants will be denied the most fundamental protection consumers enjoy in any market –competition among suppliers to provide them the best service at the lowest cost.

Tenancy protection provisions may provide some palliative, and hopefully without too many side-effects.

But they do not get new housing built.

Until there are more houses available than families in need of housing, the results will be miserable."

Stuff

https://www.stuff.co.nz/business/property/117573747/the-misery-of-a-stifled-housing-market

**Perry** · 21-11-2019, 10:09 AM

We must never forget Dhil Twitford's infamous response when his policy analysts told him mush the same thing:

It's just a scenario that I don't assume is going to happen.

**Davo36** · 21-11-2019, 06:38 PM

Originally posted by eri View Post

this guy gets it

the correct solution to a lack of housing

is houses, not hammering housing providers!

"Until the Government strikes the root of the housing shortage by reforming infrastructure financing and the perverse incentives that lead councils to treat residential growth as a cost to be minimised,

tenants will be denied the most fundamental protection consumers enjoy in any market –competition among suppliers to provide them the best service at the lowest cost.

Tenancy protection provisions may provide some palliative, and hopefully without too many side-effects.

But they do not get new housing built.

Until there are more houses available than families in need of housing, the results will be miserable."

https://www.stuff.co.nz/business/pro...housing-market

Yes it's a good article.

**Perry** · 21-11-2019, 07:16 PM

Originally posted by Davo36 View Post

Yes it's a good article.

And those who most need to read never will.

And even if they did, they would not understand.

Such is the intrinsic nature of comrade commissar Taxcindarella and co.

And it's not just Auckland, either.

**eri** · 21-11-2019, 08:05 PM

^

maybe a bit harsh

the byline for the article is

Dr Eric Crampton is Chief Economist at The New Zealand Initiative.

New Zealand Initiative nzinitiative.org.nz

The New Zealand Initiative is New Zealand's leading public policy think tank and business membership organisation.
Based in Wellington, New Zealand, this non-partisan think tank was formed in 2012 from the merger of the New Zealand Business Roundtable and the New Zealand Institute.
Wikipedia
Type:Think tank
Legal status:New Zealand limited company
Location:Wellington, New Zealand

these are the kinds of people i imagine labour listen too during their 400? enquiries

but the fact that they release stories like this

does seem to suggest they are not feeling as listen too as they'd like

as hoskings says

this is an ideologically driven gov. (at least labour and the greens are...winston 1st is just narcissisticly? driven)

and when have ideologically driven people ever really listened to criticism

in any meaningful way?

**Perry** · 22-11-2019, 09:42 AM

Originally posted by eri View Post

The New Zealand Initiative . . . was formed in 2012 from the merger of the New Zealand Business Roundtable and the New Zealand Institute.

these are the kinds of people i imagine labour listen too during their 400? enquiries

Optimist.

Labour may go through the charade of listening, but that's all.

Especially to the business round table types - those who Comrade Commissar Cullen generically labelled with his "rich p****s" politics-of-envious-greed slander.

The current clown crop of W'ton woodenheads terminally suffer from the "we know best" syndrome.

**OnTheMove** · 23-11-2019, 06:26 PM

Come on lets be realistic, prior to the 2 stupid periods of greed and Key printing money during the GFC whch fed the second boom, in Auck 3x Multiples was considered the top, we are not at 9x. What do people not get. The damn market is over inflated. But no government will do the right thing and raise interest rates, which is how you get kiwis buying Kiwi properties, lower the median house price to 6x multiples and 9% become affordable. Thats not asking a lot. And if people lose money playing the market, too FN bad, you missed the boat. So all we can wait for is external economic pressures like the expected decline in Dairy in the US in the next decade, NZ having already rung the neck of out tourism its out of lies/marketing, and with 150% PDebt to GDP. NZ is just a ticking time bomb. No the Bloomberg article hasnt occured yet, but it wasnt predicting when, it was simply stating our key market indicators. Sit back, secure your debt, relax and watch it unfold. If you over mortgaged either go bankrupt or sell and fix debt to asset ratio. What more can people do during a correction. What did investors in Ireland and the USA during the GFC do?

**Perry** · 23-11-2019, 06:42 PM