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  • Rent, rent, rent....Hike, hike, hike. $$$$$$$$$$
    "DEBT BECOMES IRRELEVANT WITH INFLATION".

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    • My take from the day, and what could happen.

      1 newbies stop buying rentals, smaller pool of rentals increased rents.

      2. Sharp rental increases likely

      3 more hangers on give up and sell, higher rent rises again

      4. property stagnates over the next few months as everyone decides the best way forward.

      5 long term investors carry as usual picking up good deals along the way as newbies decide it’s all too hard basket.
      "DEBT BECOMES IRRELEVANT WITH INFLATION".

      Comment


      • I have already calculated all possible scenarios that would be introduced and none of them effect me because most of the governments idea's came from overseas and house prices still increased dramatically during the pandemic.

        My thoughts on the day is after contemplating on how the governments try to control lives and how the universe works is..

        I don't really care BECAUSE I'M RICH BITCHES!! (asset rich that is)

        Comment


        • Originally posted by Frezzinghot View Post
          What words of wisdom will we get from the government today to control house prices in NZ.

          will they be able to stop rising prices from their announcement today or will it fuel more price spikes?
          That caused me some hot problems as when I read it.

          Comment


          • Originally posted by Jeffa View Post
            I have already calculated all possible scenarios that would be introduced and none of them effect me because most of the governments idea's came from overseas and house prices still increased dramatically during the pandemic.

            My thoughts on the day is after contemplating on how the governments try to control lives and how the universe works is..

            I don't really care BECAUSE I'M RICH BITCHES!! (asset rich that is)
            Me neither, maybe in 5 years time but hey rents to rise by then also, be less rentals around I assume
            "DEBT BECOMES IRRELEVANT WITH INFLATION".

            Comment


            • These new government changes to rental properties will slow down spending caused by less cash flow from tenants and landlords, knock on effects will slow economic growth.. our international borders aren't open and won't return to normal until mid decade.

              This will keep interest lower for longer past 2024/5 . Asset prices will continue to steadily grow and so will the wealth gap.. but the knife in the back will be inflation because the central bank won't be able to control it.

              Property is an ideal hedge against inflation because income (rent) increases in inflationary times and property values increase in low inflation times because of low interest rates.

              I don't think Grant has thought this one through, he's going to increase my wealth steadily over a longer period.

              I almost feel guilty.. almost.
              Last edited by Jeffa; 23-03-2021, 08:52 PM.

              Comment


              • calling it a loophole it is just a new law to tax people on money they have lost. Not sure how it is even legal to tax someone on money they never made or have. But I bet Cindy and her little brain will be happy when the cost of this tax becomes the expense of the tenants
                Last edited by Frezzinghot; 23-03-2021, 09:34 PM.
                "DEBT BECOMES IRRELEVANT WITH INFLATION".

                Comment


                • What makes this funny is the RBNZ may be forced to print more money, lower interest rates and remove LVRS again to stimulate the economy, pushing up house prices again.. and you can just about forget about DTI being introduced haha!!hahaha
                  Last edited by Jeffa; 23-03-2021, 09:51 PM.

                  Comment


                  • Originally posted by Jeffa View Post
                    What makes this funny is the RBNZ may be forced to print more money, lower interest rates and remove LVRS again to stimulate the economy, pushing up house prices again.. and you can just about forget about DTI being introduced haha!!hahaha
                    I have always said the reserve bank ranks higher than the government.

                    The government controls the tax books.

                    The central banks control the money flow.

                    And the Fed control's everyone below them.

                    The RBNZ has the property investors back..they will push back.

                    Lower or Negative interest rates

                    Removal of LVRS in the next 12 months... don't forget we are already negative GDP and heading into a double dip recession... Adrian Orr to the rescue !

                    Comment


                    • Adrian Orr has been on record saying he was pushing for these and more restrictions for property investors, so now I’m really confused
                      "DEBT BECOMES IRRELEVANT WITH INFLATION".

                      Comment


                      • Originally posted by Frezzinghot View Post
                        Adrian Orr has been on record saying he was pushing for these and more restrictions for property investors, so now I’m really confused
                        His job is to keep inflation at about 2 or 3 percent and have full employment at about 96%.

                        House prices can ease but if they flatline or reverse he has to step in.

                        You don't need to be confused just remember house prices hold up the entire economy and were already heading into a double dip recession.

                        How did the virus workout with house prices?

                        Even if house prices flatten out the reserve bank has to step in...if house prices continue on there merry way which is what Adrian Orr is praying for he will not have to step in.. it's a balancing act with the goal of keeping house prices steadily increasing, the problem is we are not growing as an economy, the tax changes may effect what the central bank has to do.

                        Comment


                        • I see, it seems the pendulum is always swinging. But the main issue I see out of this all is fear, especially from new entrants into the market. All these changes create a certain amount of fight or flight, I can see some short/mid term investors giving up and cashing in, although a little early in the piece.

                          the smart ones will hang tough.
                          "DEBT BECOMES IRRELEVANT WITH INFLATION".

                          Comment


                          • GDP had dropped 1%

                            Unemployment has slightly increased.

                            Business confidence is low.
                            ​​low.A trantasmin bubble will not save the economy because kiwis will head to oz to spend money there.

                            This means inflation will not pick up until 2025.

                            We are heading to a double dip recession.

                            The economy which equals house prices are on the edge off a knife.

                            If house prices retract interest rates will go negative and more stimuluswhich seems unlikely by commentary of investors on PT obsorbing cash flow losses and holding property.

                            I find all of this fun and fascinating.

                            Comment


                            • Originally posted by Jeffa View Post
                              What makes this funny is the RBNZ may be forced to print more money, lower interest rates and remove LVRS again to stimulate the economy, pushing up house prices again.. and you can just about forget about DTI being introduced haha!!hahaha
                              Says the man who promised negative interest rates by the start of this year!

                              Comment


                              • Originally posted by Wayne View Post

                                Says the man who promised negative interest rates by the start of this year!
                                Sorry about that Wayne I got that prediction from your wife's new boyfriend.

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