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Remind me again why restrictions were imposed on Investors?

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  • Remind me again why restrictions were imposed on Investors?

    Just got this email........

    Housing Market Unmoved By Latest Restrictions

    May’s Auckland housing sales data shows no hint that restrictions imposed in March have had an impact on prices or sales numbers.

    “Trading in May was excellent, with the median price increasing, the average price being in line with the record price set in April and sales numbers being their highest in the month of May for four years,” said Peter Thompson, Managing Director of Barfoot & Thompson.

    “The market has worked through the implications of the recent changes and continues to trade with confidence.

    “The median May price at $1,073,000 was up 2.2 percent on that for April, setting a new record median price and 17.4 percent ahead of last year’s May price.

    “The average price for May at $1,114,011 was right in line with that for April, and 17.5 percent ahead of where it was 12 months ago.

    “As we enter the colder autumn and winter months it is not unusual for sales activity to ease back and, if this were to occur, the cause is likely to be seasonal rather than investors reacting to the removal of interest payments as a tax deduction and the extension of the bright line test.

    “Sales at 1197 for the month were 8.1 percent ahead of those for April and comfortably higher than in the pre-covid sales numbers for the same month between 2017 and 2019.

    “Although new listings in the month at 1502 were their highest in a May for four years it did nothing to improve availability, and at month end we had only 3122 properties on our books. This is the lowest number of properties for sale since January, and our lowest in the month of May for five years.

    “110 properties sold for in excess $2 million in May, the third consecutive month when sales exceeding $2 million have been above 100.

    “Sales of property for less than $750,000, at 179, represented 15 percent of all sales.

    “Rural and lifestyle property sales also remained unaffected by the new regulations with sales in this sector reaching $95 million, the highest May sales turnover for five years.

    “Sales around Kumeu were particularly strong following a lift in new listings while buyer demand for property in the $2 to $3 million price range in Rodney was greater than available listings.

    “The Far North continues to attract high interest, particularly for 10 to 25 ha bush blocks with streams.”
    -ends-  

    I bet it's the same for the rest of the country too.

    cheers,

    Donna

    May 21 Sales Data Statement - Barfoot & Thompson .pdf
    Last edited by donna; 02-06-2021, 05:26 PM.
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  • #2
    Remind me again why restrictions were imposed on Investors?

    Because comrade commissar Cindy and her socio-commie sycophants in gummint had to be seen to be doing something.
    (Even if they knew it would have minimal-to-no beneficial impact on housing and the housing market.)
    Last edited by Perry; 03-06-2021, 10:46 AM.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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    • #3
      To enable the middle classes and their kids who are swinging voters to buy their first homes at the expense of tenants who won’t be able to afford to but probably will still keep voting for more punishment

      Comment


      • #4
        Idealogical stupidity.
        The disaster Government. Everything they touch turns rather bad.
        The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

        Comment


        • #5
          And it will only get worse, I suspect.
          Especially when high on OPiuM. (Other People's Money)
          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

          Comment


          • #6
            To massively drive up the cost of new builds and hence the rest of the housing market ?
            To push up rents ?
            Because they don’t know what they are doing?
            Because they hate successful people?
            who knows

            Comment


            • #7
              Damn! The commie comrade commissariat in W'gton needs to stamp its foot, pout, wave its arms and look a lot more belligerent and threatening.

              Seems that 'the market' is quite deaf to the brain-dead BS coming from comrade commissars RobUsome, Cindy and the rest of the mob - including the watermelon party!

              Who'd've thought it?

              Time for some weeping, wailing and gnashing of teeth. And more hollow shots at the thinning ranks of private residential PIs, perhaps? Especially now the NZ media is totally under communist control.

              House prices haven't yet got the hint: ANZ
              22 June 2021

              Originally posted by STUFFed
              House prices haven't yet got the Government message that they are meant to slow down, ANZ economists say, and rents seem to be rising more quickly, too. When the Government announced a suite of housing market changes in March, including an extension of the bright-line test and removal of investors' ability to offset home loan interest costs against their rental income, it was predicted that investors would pull back sharply from the market, causing prices to soften quickly.

              But in their latest property market update, ANZ economists said while investor demand had fallen, listings had also been sparse enough for price pressure to persist. Real Estate Institute data showed median national house prices were up 30 per cent, year-on-year, last month. "This came as a bit of a surprise and we have upgraded our near-term house prices forecasts to include a little more momentum."
              Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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              • #8
                Because we live in a Communist Socialist run country.

                Unfortunately they are rather stupid and have no idea what they are doing.

                Casting property investors as evil speculators exposing tax loopholes, and chucking everything at them including the kitchen sink, just made it worse.

                Market is so out of shape, no one wants to sell or rent, stocks of property for sale and houses to rent is shrinking, as everyone is paralysed by confusion.

                Have seen some completely stupid prices at auctions in the last week or so.

                Next cab of the rack will be some crazy rental prices and then rent controls (get your rent incresae in now, before Cindy freezes them).

                Economists are sort of predicting house prices to flatten out in 2022 once interest rates (1 year short term) (OCR maybe 1 to 3 jumps ?) and this masive housing boom plunders on.


                Comment


                • #9
                  On rent increases. Go hard and go early.
                  need to recover all these huge cost imposed on the business by our communist rechime

                  Comment


                  • #10
                    Originally posted by Engineer View Post
                    On rent increases. Go hard and go early.
                    need to recover all these huge cost imposed on the business by our communist rechime
                    Sounds good, but in practice, it may be harder to achieve.

                    No doubt about the huge costs imposed on residential LLs by comrade commissars Cindy and Fargonboy.

                    The ability of tenants to pay is always the final determinant. On that subject, most tenants are surprisingly ignorant of basic facts.

                    You only have to look at this article to see what I mean.

                    Why stop at indexing rent increases to inflation? Why not add other costs for tenants and LLs?
                    • all council charges
                    • insurance premiums
                    • electricity and gas costs
                    • property maintenance and management fees
                    • etc.

                    Whitaker and his ilk all presume LLs are creaming it. A personal example of recent date. A fellow of my acquaintance (who should've known better) said to me, "you must be coining it in grand style."

                    "Oh? What do you pay annually for your insurances?"

                    He wasn't sure. He mumbled something like around a grand.

                    "I pay over nine thousand dollars a year."

                    He looked quite shell-shocked.
                    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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