Housing Crisis What Housing Crisis?

[Perry]

Here we say again, folks.
House asking prices up nearly $90K in 'completely out-of-control frenzy'
3 Mar 2021

Home sellers across the country were on average asking $89,575 more than they were when the first case of Covid-19 arrived in the country. Asking prices were up on average 12.7 per cent across the country, according to property marketing website Realestate.co.nz
But in some places the rise was much higher, with the biggest rise of 32.2 per cent in the central North Island. Vanessa Taylor, spokeswoman for Realestate.co.nz, called the housing market “resilient”, but affordable housing campaigner Hugh Pavletich, called the property market out of control.

Revised Gummint Housing Crisis Plan Revealed!

[McDuck]

Your picture reminds me of String Theory.




Or Jackson Pollock.




Taking your idea seriously, yes, a plan for a free market economy would have to look like that picture of yours.
A lot of individuals all doing their own thing, each adding to the complexity and vibrancy of an economy.
Aka a bloody mess, in some ways, a free expression of souls, in another.
As a graphic representation of the complexity of a market, I don't have a problem with it.

That aside..

Why blame the Gummit?

Since the Reserve Bank are, some would say, deliberately pumping cheap cash into the economy.
through the mechanism of home loans.

And since the Trading Banks are deliberately giving poor returns on term deposits and the like, it vents to property first.

So why do you blame the Gummit for the house price inflation?

They have very little to do with it.

The people creating money and pointing it to the housing sector are all in the Banking Industry.

I do agree that there are a lot of impractical people in positions of power in every corner of our country.
and a lot of selfish, lazy, ignorant and arrogant ones too.
( But that's nothing to do with political affiliation )

And if you asked them, they would agree with you, but all think it was someone else.

Do you have any practical ideas for fixing things up?

[Perry]

From April 2018

http://www.nzherald.co.nz/hamilton-n...ectid=12027170
Labour command house prices be reduced!
There. That's all that's needed.
House prices will be coming down.

[Perry]

Hard to read this without screwing up one's face. Especially the bit that goes:

"Social Development Ministry central regional commissioner Graham Allpress said it would not support people at the farm with normal rental assistance. The Linton facility is not one of our providers of emergency accommodation and we are concerned about the lack of facilities onsite.”

Better sleeping in the streets, it seems, so far as comrade commissar Cindy's snivel service sycophants go.

What a bunch of myopic, cloistered, cosseted morons they are at MSD. [Ministry of Social Destruction]

Street-sleeping is better than something, it seems.

[Perry]

OMG! They (the taxpayer-funded airheads) are at it again!

Anyone here recall this coming up, years ago?

Back then, Finance Munster, comrade commissar Cullen dismissed it. "Ideological burp," wasn't it?

I dimly recall it was some inane suggestion from the the UN or OECD or some other committee of brain-dead drones.(What I wouldn't give for totally and better recall! Mind you, even gooble can't find any specific reference.)

It may've been in some o'seas 'stink tank' dubious report and / or the McLeod Taxation Review. The NZ electorate reaction was immediate, forceful and feisty!

I.e. The proposal was that NZ home owners should pay income tax on the theoretical interest that their home's value would earn if it was in a term deposit.

That was labelled fair economic return. The main thing about it being that it neither was nor is NOT fair in any way.

(Rule 1 of PR / spin: Take an idea's weakest aspect and make it look as good as you can.)

Nowhere is the idiocy better exemplified than in this observation:

“I think housing is eating our young. It’s a horrendous problem. We need to change the tax settings in a way outside the box we’ve been thinking about.”

As expected, totally absent was any indication of how adding a tax to home-ownership would make them more affordable.

Only empty-headed, university-sinecured drongoes could miss that point.

And - as always - suggest remedies for all and any symptoms.

Never, but never, discuss remedies for the cause. (Far too embarrassing!)

[donna]

It’ll never fly.

[Perry]

Here we say again, folks.
House asking prices up nearly $90K in 'completely out-of-control frenzy'
3 Mar 2021

Revised Gummint Housing Crisis Plan Revealed!

Reserve Bank prepares to crack down on housing
3 Aug 2021

Reserve Bank deputy governor Geoff Bascand said the bank was focussed on ensuring borrowers were "resilient to a range of future economic and financial conditions. We are particularly concerned about those who have borrowed in the past 12 months at high LVRs and high DTIs. If house prices were to fall, some buyers could face the possibility of negative equity – which means the value of their property is below the outstanding balance on their mortgage."

Somewhere in my (date indexed only) predictions file is the RBNZ saying exactly the same thing, some years back.

They'll never learn. NEVER!

Don't believe me? See here:


That was in 1988!!! The more things change - the more they stay the same.

The only things which remain the same is the diverse range of morons in the NZ gummint and snivel service.

Despite all the wild and totally false claims to the contrary, the RBNZ is not independent from gummint because it pays an annual stealth tax dividend to gummint.

Blenglish made that clear, years ago.

[Jeffa]

Yep my portfolio still increasing, there coming after investors now first home buyers, if that doesn't work I guess they can just make it illegal to purchase property until the borders open.

The good news is you and your family can rent a motel room in Rotavegus owned by the state. It comes with cockroaches and a handy P dealer next door, think of fuel you can save.

[Jeffa]

https://www.nzherald.co.nz/business/anz-predicts-most-aggressive-interest-rate-increases-since-2004-as-economy-overheats/P5OZMUCROZXMWH37M6TUGN4OOM/

Negative interest rates by late 2023

[Wayne]

https://www.nzherald.co.nz/business/...H37M6TUGN4OOM/

Negative interest rates by late 2023

Bull - you were wrong before and are wrong now.

[Jeffa]

Bull - you were wrong before and are wrong now.

Sheep- I'm not wrong just early

[Wayne]

Sheep- I'm not wrong just early

Nutter - you are wrong.

[Jeffa]

Nutter - you are wrong.

Butter- check back in 2023

[Frezzinghot]

https://www.nzherald.co.nz/business/...H37M6TUGN4OOM/

Negative interest rates by late 2023

I see what your saying, are they going to do the opposite? Not that I can read the link!

[Wayne]

I see what your saying, are they going to do the opposite? Not that I can read the link!

The headline was
ANZ predicts most aggressive interest rate increases since 2004 as economy overheats