S#%ts going to hit the fan.

[donna]

^^ That’s scary - however some experts (in that discussion you’ve quoted) say we shouldn’t worry about Govt debt. More damage is done by restricting borrowing especially to businesses that need investment to improve productivity.

cheers
Donna

[chook]

YES MUCH MORE TO COME IMHO

As we know NZD'ers have a Love affair with Property debt be dammed .. well the reality won't be pretty for many .... and those that think RBNZ will just smash rates down to help out all the ticked up kiwis ... yeah right .. Aussie has just turned face and is now lifting rates higher same for many nations .. we turn around now and drop hard so will our dollar and not sure if many know but we are an ever increasing trade deficits( we spend more as a nation that we export and make) would head even higher which with are costs of living crisis would only increase...... petrol to $4 anyone ??.... then we will have an issue of our credit rating as we borrow much of our funds from overseas commercial / central banks

https://www.stuff.co.nz/business/300...rating-at-risk

Ratings agency Standard & Poors has warned that New Zealand’s credit rating could be reduced if the current account deficit does not improve and government interest costs rise substantially to more than 10% of revenues.

The deficit hit $2.8 billion in six months to the end of December, which was $39 million more than forecast.

Core Crown tax revenue was $375 million or 0.7% below forecast at $54.5b, while core Crown expenses were $411 million, or 0.7%, above forecast at $60.5b.


NZ's Govt debt is currently growing at over $60M per day - that is it spends $50M more than it 'earns'.!!

Yes intensifying daily, weekly..

Few understand this, most have no idea what is going on..

[Beginner1]

It is real now, it is hitting to small centers like Tauranga.

I have been tracking properties in Mount and Papamoa for years and number of properties in the market has tripled. I live in mount and people say mount is immune, it surely is not..

https://www.oneroof.co.nz/news/owner-prepares-for-250000-loss-on-papamoa-bargain-43508

The owners paid $1.3million for above property and they even had above article on oneroof almost 2months ago. No offers even with 0.5million discounts. That is 40% off what they ve paid 18 months ago.

I was thinking of buying couple more rentals but postponed till mid next year. I agree market may stabalize with national back in power, but it will stall for further 5 years.

[JBM]

Surely the government are not that thick that they can’t work all this out. NZ residential investors are getting the crap kicked out of them.

Hows this for a concept?
Auckland University economist Robert MacCulloch meanwhile warns banks and other large institutions may start purchasing property directly, rather than handing out mortgages.

This has already begun happening in the USA and Britain, he says, where it was reported Lloyds aims to be renting out 50,000 homes by 2031. SUPPLIED
Auckland University professor of economics Robert MacCulloch says banks may well become direct buyers of residential property.
“The big fish are thinking: why should we let this first home buyer buy something which they are going to double their money on in the next five years? The banks are thinking: why don’t we double our money on it?” MacCulloch says.

“They are thinking: we should have bought the place instead of them and just rented it to them.”

There’s very little that can be done to stop the buy-up if it starts, MacCulloch says.

Thats pretty disgusting if NZ banks end up becoming major landlords ..esp as they are mostly Aussie owned