How international market forces affect NZ property

[McDuck]

Bit dramatic.

[Jeffa]

Once the US economy is falling, It’s impossible to navigate a soft landing at zero.

The economy doesn’t just stop declining when the Fed says so

A nasty recession will likely kill Biden’s second term much quicker than 3% inflation.

At this stage Donald Trump is the leading republican candidate

Lol.

[Jeffa]

M1 money supply is made up of demand deposits, other liquid deposits like savings deposits.

M1 is the most liquid part of the money supply / it contains currency and assets that either are or can be quickly converted to cash

And it's fallen the fastest in 50 years, we are skating on thin ice here this is the same for the US as chatter on Friday of increasing rates further in June

When liquidity runs out, people don't get paid, landlords don't get paid, government tax doesn't get paid, then it ends very badly.

Once the US economy is falling, It’s impossible to navigate a soft landing at zero.

The economy doesn’t just stop declining when the Fed says so

A nasty recession will likely kill Biden’s second term much quicker than 3% inflation.

At this stage Donald Trump is the leading republican candidate

[Jeffa]

M1 money supply is made up of demand deposits, other liquid deposits like savings deposits.

M1 is the most liquid part of the money supply / it contains currency and assets that either are or can be quickly converted to cash

And it's fallen the fastest in 50 years, we are skating on thin ice here this is the same for the US as chatter on Friday of increasing rates further in June

When liquidity runs out, people don't get paid, landlords don't get paid, government tax doesn't get paid, then it ends very badly.

[Frezzinghot]

Yes you have to laugh at these puppets

[Perry]

https://www.stuff.co.nz/business/132...-national-doesInvestors now leaving the market.

Well, I'll be STUFFed!

Laugh or cry, the gummint-bribed, taxpayer-paid-for, brain-dead, NZ prostitute media cannot help themselves:

a key tax advantage for investors that Labour is in the process of phasing out.

The same "tax advantage" that every other business in NZ has.

Huh! Hang on! If everyone has it, how does it get to be an advantage for one type of business?

That's right! It doesn't!

[Sanya]

Take a look around Auckland, there everywhere, the quarter acre dream is no more

^^ Tis true, but the real value is in land, not in three storey dog kennels that take up precious little of it.

[Jeffa]

https://www.stuff.co.nz/business/132...-national-does

Investors now leaving the market.

Good

The less competition,the larger pool of tenants and profits for landlords that remain in the game.

[Jeffa]

USA credit rating could be cut by credit rating agency Fitch
a decade or so ago Standard &Poor's cut the US credit rating, the S&P 500 sold off 17% in a single week, oddly enough I remember this because my portfolio in South Auckland began to recover from the GFC, the Fed had recently started money printing.

I doubt neither the Republicans or Democrats want to be the ones who caused America to default, they will magically come up with a deal on the debt ceiling over their long weekend.

Surprise surprise... not really

https://www.cnbc.com/2023/05/27/whit...s-default.html

[Frezzinghot]

https://www.stuff.co.nz/business/132...-national-does

Investors now leaving the market.

[Frezzinghot]

^^ With no meaningful garden, no privacy, no sunlight and often no parking, many so called “new builds” will and to some extent already are being classed by banks as being “lending traps”. As with “shoe box” apartments, lenders must take into consideration market desirability and the ability for a property to maintain and increase its value over time.

Take a look around Auckland, there everywhere, the quarter acre dream is no more

[Sanya]

^^ With no meaningful garden, no privacy, no sunlight and often no parking, many so called “new builds” will and to some extent already are being classed by banks as being “lending traps”. As with “shoe box” apartments, lenders must take into consideration market desirability and the ability for a property to maintain and increase its value over time.

[donna]

Have a friend who owns a construction company tell us today 2 building companies which I cannot name haven't sold any new builds for months. Banks are also not lending on new developments unless they are 80% pre sold.

Hello Chinese buyers!

Aussie is doing it - why no t us?

cheers

Donna

[Jeffa]

It's just a simple two word phrase to explain a complicated concept.
A sort of approximation for convenience.

People who don't have the time or interest to understand the many complex layers of value designation and allocation both globally and personally can grab those two simple words and easily see they are being ripped off.

I suppose money printing does sound easier to understand than Quantitative easing Quantitative tightening, Credit expansion or Credit contraction, liquidity squeeze or my favourite 'dovish or hawkish, it's meant to sound confusing, if the sheeple truly could comprehend whats going on at the central banks, there would be more than just protesting on parliament grounds.

It's a fine line between order a chaos .

[McDuck]

Why does everyone [almost] keep referring to the gummint or RBNZ "printing money?"

It's just a simple two word phrase to explain a complicated concept.
A sort of approximation for convenience.

People who don't have the time or interest to understand the many complex layers of value designation and allocation both globally and personally can grab those two simple words and easily see they are being ripped off.