How international market forces affect NZ property

[Chris W]

https://twitter.com/CNBC/status/1619...7cUvGi2Qg&s=19

Barry Sternlicht is talking is own book. His real estate investment fund has stopped making redemptions to his investors by limiting redemption requests.

[Chris W]

Hyperinflation.

Hyperinflation has occurred in many countries recently - Zimbabwe, Venezuela, Argentina.

Also has happened in history - Germany Weimar Republic, Hungary post World War 2.

When hyperinflation hits the local economy, look what happens to the local residents in those countries.

There are other unintended consequences of hyperinflation.

[donna]

Hyperinflation.

House prices will triple by decades end.

Wow and then what - interest rates hiked into the teens and who knows what a Labour Government will throw at us. It will be around that time they may get another look in aye.

[Frezzinghot]

I’m personally looking forward to a tripling of house prices, I’m over working anyway.

[Perry]

I’m personally looking forward to a tripling of house prices, I’m over working anyway.

Remember that it's all "smoke and mirrors." Numbers on a piece of paper. An IP is a hedge against inflation; against the erosion of the purchasing power of a NZ dollar. Further, just because the numbers go up (not the same as 'value'), doesn't mean that tenants can afford triple the rent.

[Frezzinghot]

Remember that it's all "smoke and mirrors." Numbers on a piece of paper. An IP is a hedge against inflation; against the erosion of the purchasing power of a NZ dollar. Further, just because the numbers go up (not the same as 'value'), doesn't mean that tenants can afford triple the rent.

Agreed but the numbers may help in buying more, it is after all a Ponzi scheme

[Jeffa]

Fed likely to start lowering rates sometime in the 2nd half of the year with most leading indicators pointing towards a recession

Should start seeing a recovery in the New Zealand housing market in the 2nd half with cheaper swap rates.
Christchurch will likely hit new highs first in the next 18 Months.

[Chris W]

Hyperinflation has occurred in many countries recently - Zimbabwe, Venezuela, Argentina.
Also has happened in history - Germany Weimar Republic, Hungary post World War 2.
When hyperinflation hits the local economy, look what happens to the local residents in those countries.
There are other unintended consequences of hyperinflation.

Want to see some hyperinflation happening in the world currently?

Here you go. What happens to local residents living in these economies?

[Jeffa]

Markets getting ahead of the Fed with the Nasdaq composite index having its best January since 2001

This may cause Powell to use Hawkish language to slow down the market and obviously the cost of our banks borrowing from the states which will stall the NZ housing market until next spring.

[chook]

Whos listening?

[Jeffa]

https://www.interest.co.nz/business/...-it-was-widely

[Jeffa]

Want to see some hyperinflation happening in the world currently?

Here you go. What happens to local residents living in these economies?

Hyperinflation is relatively simple to combat as an individual, not so much as an Institution or a government.

Don't own the currency that is hyper inflating into trash

Own hard assets, real estate, strong cashflow companies,commodities, precious metals or a stronger alternative currency.

Most if not all will still return an income regardless of hyperinflation.

[Jeffa]

Fed raised rates only.25 added some hawk talk as I predicted.

[Jeffa]

U.S 10y bond yields continue to fall down ytd from 3.8 to 3.3%

2 year NZ mortgage rates are starting to come down slowly as a result.

The Fed thinks they are raising rates

The market is lowering them.

[McDuck]

U.S 10y bond yields continue to fall down ytd from 3.8 to 3.3%

2 year NZ mortgage rates are starting to come down slowly as a result.

The Fed thinks they are raising rates

The market is lowering them.

Speculators think they know the FED
The FED knows speculators better than they think.