How international market forces affect NZ property

[Jeffa]

Apples and oranges.
How can you think that you understand what that figure means? Chi - merica is over.
Marco Polo cold have told you it would be.
In the words of the teens, " I don't ship it".

[Frezzinghot]

Ole Birchy must be rubbing his hands together.

[Frezzinghot]

Does this mean what I think it is?

[donna]

No drop in interest rate in 2023 - that video said RBA looks at easing interest rate in 2024 so some pain for many for the next 7.5 months or more. I guess that’s what will happen here too - another rise as Orr can’t help himself and the a plateau for a few months - until probably Feb 2024 at the earliest aye.

cheers

[Frezzinghot]

With net migration this could be interesting, they have to live somewhere

[Perry]

With net migration this could be interesting, they have to live somewhere

Tut, tut . . .

Didn't you see that Labour has a plan?

* 3,000 additional public housing places.

And that's on top of the 10,000 affordable kiwibuild houses per year, dontcha know.

So - no problems; plenty of houses; cheaper rents; yunno - all the usual BS.

---

* Over the next 4 years! Do they really believe they'll be in gummint that long?

[Engineer]

Reality of the tax ring fencing and interest deductibility rules v theory - prices will skyrocket.
There’s only one way things are going to go with the war on landlords.


https://www.nzherald.co.nz/nz/tauran...NHMOYQEBL3BHA/

“The rental market in one of New Zealand’s fastest-growing cities is so competitive landlords are being offered more money, pet bonds and gifts by desperate renters wanting a home. Working families are holed up with whānau and one tradie says he is living in his van because he can’t find a home for him and his two dogs. The average rent for a three-bedroom home in Tauranga is now $690 a week”

A three-bedroom home in Tauranga has an average rent of $690 a week or $800 for Mt Maunganui, he says, describing the rental market as “crazy”.

That figure has jumped $100 a week since April 2021.

Properties under $600 a week often have more than 100 applicants, while those over $600 have about 50.

[Perry]

Reality of the tax ring fencing and interest deductibility rules v theory - prices will skyrocket.
There’s only one way things are going to go with the war on landlords.

The saddest aspect to your observations is there will still be a few short-term-memory-loss, Labour-voting mental midgets who will believe Robusome's BS!

Think back to the Reform of the Residential Tenancies Act 1986 pseudo-Discussion document. Excerpt below:

New Zealand is suffering a housing crisis and the Government is committed to addressing the problem on several fronts. As well as setting up KiwiBuild to build 100,000 homes for first home buyers . . .

* Phil & Co couldn't even manage to build 20 in year one! Yes - you read that right. Twenty! Then, later . . .

On Friday 21 May 2018, Phil Twyford slammed Treasury officials for their KiwiBuild forecasts, calling them 'kids . . . disconnected from reality' - the Prime Minister says he went too far.

"Some of these kids at Treasury are fresh out of University and they're completely disconnected from reality."

You what, Phil? Pot - meet kettle! That from a man who'd never had a real job in his life.

Housing Minister Phil Twyford's reforms likely to raise rents, officials warn.

Twyford said the advice was "only a scenario" and he "wasn't assuming that is going to happen."

Twyford's arrogance shown up by officials.
Another minister is having his policies torn apart by government officials. Typically for Labour ministers, they are just ploughing on regardless because they know best. Phil only thinks those officials have got it wrong. Never before has a minister been so convinced of his own infallibility. Phil's arrogance knows no bounds.

---

* Phil Twyford earned the moniker: Dhil Twitford for his dubious efforts

Including losing his Civil Aviation Ministry for using his cellphone on a domestic flight. But he didn't get fined, like ordinary kiwis would've been.

[Jeffa]

I understand this is a property forum, but I have preached on this site to spread your risk into other countries and assets

With much of Kiwis wealth being locked up in NZ property, we are dictated too by the RBNZ and government of the day

I invest in wall Street, some of my investments like Apple and Microsoft are back near to their all time highs, and I have no doubt so will others

Most of my wealth is in Property, but in the next upward cycle, I will slash this 50 to 75%

We must remember as Kiwis we live in a very fair/socialist country, it's a great place to bring up a family and or retire outside the big cities if you're wealthy, but because of our fairness beliefs it's not a country to make in excess of 10 million without being scorned and hated on by fellow countrymen.

I highly recommend diversifying outside New Zealand property.

[Frezzinghot]

I understand this is a property forum, but I have preached on this site to spread your risk into other countries and assets

With much of Kiwis wealth being locked up in NZ property, we are dictated too by the RBNZ and government of the day

I invest in wall Street, some of my investments like Apple and Microsoft are back near to their all time highs, and I have no doubt so will others

Most of my wealth is in Property, but in the next upward cycle, I will slash this 50 to 75%

We must remember as Kiwis we live in a very fair/socialist country, it's a great place to bring up a family and or retire outside the big cities if you're wealthy, but because of our fairness beliefs it's not a country to make in excess of 10 million without being scorned and hated on by fellow countrymen.

I highly recommend diversifying outside New Zealand property.

Have taken this advice and started investing with my children, they add money each week into a share account while they save for their own home/investment.

[Tom]

I understand this is a property forum, but I have preached on this site to spread your risk into other countries and assets

With much of Kiwis wealth being locked up in NZ property, we are dictated too by the RBNZ and government of the day

I invest in wall Street, some of my investments like Apple and Microsoft are back near to their all time highs, and I have no doubt so will others

Most of my wealth is in Property, but in the next upward cycle, I will slash this 50 to 75%

We must remember as Kiwis we live in a very fair/socialist country, it's a great place to bring up a family and or retire outside the big cities if you're wealthy, but because of our fairness beliefs it's not a country to make in excess of 10 million without being scorned and hated on by fellow countrymen.

I highly recommend diversifying outside New Zealand property.

Hi Jeffa,

I really appreciate your posts and perspective on things, I've learned a lot by reading your thoughts on here, thank you.

If it isn't crossing a line, could I please ask what other asset classes you are in aside from residential property, and what sort of platform(s) you use for your equities investments? Obviously you can't give advice, I'm just curious on your individual strategies.

Cheers,

Tom

[Jeffa]

Hi Jeffa,

I really appreciate your posts and perspective on things, I've learned a lot by reading your thoughts on here, thank you.

If it isn't crossing a line, could I please ask what other asset classes you are in aside from residential property, and what sort of platform(s) you use for your equities investments? Obviously you can't give advice, I'm just curious on your individual strategies.

Cheers,

Tom

Mixture of assets, stocks, commodities, countries I move in and out of these, usually every 2 years give or take

eg: I sold my bank stocks last September I think? to buy some Nasdaq, did I time it right? No , but it usually play's out in 12 months.

I use interactive brokers, it's more advanced than sharesies, it has access to margin, options and puts, commodities, currencies,Asia and Europe which is a little more technical but not rocket science, I'd recommend starting with sharesies if your new then advance over the years to more risk, I personally believe you need to give up watching sports on TV and start following the financial media like CNBC or Bloomberg with eyes wide open be weary of the fear uncertainty and doubt they spread,I probably dedicate 2 hours a day plus Following "experienced reliable" investors and fund managers on Twitter, be careful not to get caught in an echo chamber like this forum (no offense Donna) it's far riskier than property

Don't day or short term trade, you will get burnt, the best day traders in the world fail 50% of the time give yourself a 24/36 month window to sell an investment (trade)

If your going to invest in single company's, you need to read financial reports, listen into quarterly results, and long boring AGMs

It's not for everyone, but I'm retired and it fills up a couple of hours in the day , I enjoy it.

It also gives me an insight into how and who actually controls the world.

[Perry]

With much of Kiwis wealth being locked up in NZ property, we are dictated too by the RBNZ and government of the day.

For those without a mortgage[s], I suspect the risk is minimal. Apart from a small amount of shares and bonds in my local port, I have no investments outside property and have no concerns about that.

[Frezzinghot]

For those without a mortgage[s], I suspect the risk is minimal. Apart from a small amount of shares and bonds in my local port, I have no investments outside property and have no concerns about that.

I still believe diversification minimises the risk should one asset class fail miserably.

[Jeffa]

For those without a mortgage[s], I suspect the risk is minimal. Apart from a small amount of shares and bonds in my local port, I have no investments outside property and have no concerns about that.

I have some mortgage free properties in the Wellington region, Im down in excess 1m + in capital there, my most recent purchase with debt in Christchurch in 2020 and is actually up in value, any increased interest I have to pay is covered by liquidity in my other investments,I haven't had to use lines of credit "yet"

Most people get a salary once a week or once a month

My pretend salary I pay myself is once every 2 years, or once a year if there is a good year in the share market, on average, the s&p 500 has gone up 7% a year since WW2, so in a 10 year period you will have approximately 3 negative years and 7 positive years so technically I could pay myself a salary 7 times a decade or something weird like that, I don't usually need all this money so I just re invest it .

Debt is good, so long as they keep printing money, if they stop, then the world economy collapses

I'll take income from rent and dividends, these are tax traps for me, it's income none the less

Perhaps this is the same for other wealthy people on this forum or perhaps it's just me, but the more money I make the less I feel the need to spend it on crap I don't need.


....I sense a capital gains tax coming and K Jeffa regrets writing this post.