Because if RBNZ's inflation calculator is to be believed consumer purchasing power has eroded by 45% over the past 20 years.
Increases in wages are insufficient to keep up with increases in food prices - let alone increases in house prices....
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The worry is not just lose of jobs. It's also a significant loss of purchasing power.
Moreover, our currency is also under water. The prospect of higher rates and a protracted timeline to rate cuts boosted the USD and continues to weigh on near-term NZD value. NZ imports more than it...Last edited by Sanya; Yesterday, 12:22 PM.
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NZ CPI leads the way. According to STATS NZ
For the 12 months to the March 2024 quarter:- Housing and household utilities increased 4.5 percent, due to:
- rent (up 4.7 percent)
- construction (up 3.3 percent)
- property rates and related services (up 9.6 percent).
- Recreation and culture
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- Housing and household utilities increased 4.5 percent, due to:
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Yep, to add, rents will soar in 2024.
High interest and build costs have stalled new builds. High interest has also deterred new rental investments.
Just hope for the sake of renters that things don't get as bad as they are in Aussie right now....
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Higher for longer
US consumer prices picked up again last month, vaulting to a 3.5% increase for the 12 months ended in March, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics.
That’s up considerably from February’s...
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Hard to believe the broker took on work without a signed contract outlining the terms and conditions of services.
As mentioned above by "brokerman" such terms and conditions of services would detail what happens in a situation where a loan is paid back early and the bank claws...
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Some consideration still needs to be paid on the ability to service debt.
According to research from thinktank, the NZ Initiative, if current trends don't change, Kiwi's will have to wait to 2055 to get around twice the earnings / wages they got at the beginning of the century.
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Leaving aside the Covid dip NZ productivity has trend upwards for the past two decades. That helped house growth.
But since hitting a peak in 2021 the trend is downwards.
New Zealand has a productivity problem.
Potential economic growth drivers like farming...
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Low productivity = Stagnate wage growth.
That won't help house prices "to double from there 2022 lows by 2030."...
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Was a high percentage of the plumbing business previously associated with new builds?
In contrast, I would assume plumbing repair work is steady for them?...
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Was the appraisal to sell or rent?
Some analysts are suggesting house prices may fall from current levels in selected geographic markets due to high stock levels and cautious buyers. Longer term the trend is up.
Recent data shows rents are flattish in Auckland but going gang...
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