Economist says it's cheaper to rent - What are your views?

[Damap]

And she knows less than nothing after 15 years about real estate investing.

[PTILoveYou]

If the journalists know about real estate investing, they might as well write books about it or become a mentor.

Mentor these days dont own much but claim to own the world.

[Damap]

Did you see the complete nonsense from Bernard today. He really is an ignorant poverty mentality aficianado.

[PTILoveYou]

Did you see the complete nonsense from Bernard today. He really is an ignorant poverty mentality aficianado.

Family day today,just went for yum cha and devonport.

no time for bernard today lol, i will check it out tomorrow

[Wayne]

And she knows less than nothing after 15 years about real estate investing.

I have found she has a well rounded knowledge on most subjects.
Because she doesn't push one or the other doesn't mean she knows nothing.
Need to remember that what she writes isn't aimed at an Expert but average public.

[Wayne]

Family day today,just went for yum cha and devonport.

no time for bernard today lol, i will check it out tomorrow

PT is getting like facebook now.

[Marc]

Yes I read Bernard's latest on Interest - but what he is not saying is the use of the loans that are secured against property is not always to invest in property - small businesses use them too.

cheers,

Marc

[Wayne]

^And that is something a lot of people either forget or don't know about.

[Perry]

Kiwis have failed to learn the lessons of their debt gorging ways
13 February 2016

Global banking sector woes are a warning for New Zealand. We are stuck in a doom-loop of debt gorging and economic vulnerability. Banks should be made to hold more capital and aggressively manage the risks at home: a distressed dairy sector and a ridiculously overinflated housing market in Auckland. The Reserve Bank can and should do this.

Bank share prices are falling globally and their cost of borrowing is going up. This has spread to the Australian parents of New Zealand's four major banks. There isn't the same panic as the Global Financial Crisis of 2007, but then history doesn't repeat but it rhymes.

[Bluekiwi]

The man who said 5 years ago that buying in Auckland would be a financial mistake.

And so by renting instead, lost maybe half a million in equity.

Should not be trusted.

He cannot even grasp the concept of supply and demand.

[flyernzl]

He does however have a firm grasp on the benefits of renting a house from your Auntie.

[Davo36]

Lol, yeah this guy is a stuck record.

I think the strength of our banks in NZ is the last thing we need to worry about.

[MikeC]

Saw him present at a Property Investor meeting in Wellington last month. He now has a part share in an investment property in Wellington.
He made a number of good points, although it did feel a bit like an infomercial for his book. Didn't make me want to rush out and sell any properties below value to first time buyers.

[donthatetheplayer]

He now has a part share in an investment property in Wellington.

He's catching on. Would love to know the numbers on it.

[Perry]

Some further insights into Shaumbeel's mindset and world view, here.

Reserve Bank needs to better communicate its cash rate cut reasons
12 March 2016

The Reserve Bank managed to do the right thing and the wrong thing at the same time.
They cut rates by 0.25 percentage points to 2.25 per cent – which was right. Their
communication in the lead-up and on the day was wrong. They did not get across that
the Reserve Bank favours growth and is does not fear impending inflation. That is all most
people in the economy need to know.

Like central banks everywhere, they play these games of obscure language, process
and inability to plain-speak what they are doing, why they are doing it and why it mat-
ters. The reason the Reserve Bank cut rates is that there is little inflation, little pros-
pect of future inflation and growing risks from the global economy and our dairy sector.