• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 2 of 3 FirstFirst 1 2 3 LastLast
Results 11 to 20 of 23
  1. #11

    Default

    Compared to people who bought Strategic/bluechip/lombard they made a brilliant investment.

  2. #12
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,754

    Default

    Agreed ^^^

    You can spend all day on different "what if" scenarios.

    Fact remains, paper money (or balance sheet money) disappears. Land (unless in Christchurch) mostly stays.

  3. #13
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    Ha,
    I know some you bought in Tok for $75k
    and now they are worth $150k.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  4. #14

    Default

    Quote Originally Posted by Keys View Post
    Agreed ^^^

    You can spend all day on different "what if" scenarios.

    Fact remains, paper money (or balance sheet money) disappears. Land (unless in Christchurch) mostly stays.

    Yep what he said......

  5. #15
    Join Date
    Jul 2012
    Location
    Tavua, Fiji
    Posts
    3,347

    Default

    Do you think we have to consider stagflation as a real possibility in these times? This changes everything in regard to future capital growth prediction surely?

  6. #16
    Join Date
    Sep 2008
    Posts
    7,561

    Default

    yes, as a possibility

    but imho

    less likely than simple flat growth future

    1-2% growth, 1-2% inflation and 5-8% unemployment

    which is no way to go into a future where all our cans have been kicked, it's very messy up there now...

    In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. It raises a dilemma for economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.
    The portmanteau stagflation is generally attributed to British politician Iain Macleod, who coined the phrase in his speech to Parliament in 1965.[1][2][3] [4]
    The concept is notable because, in the version of Keynesian macroeconomic theory which was dominant between the end of WWII and the late-1970s, inflation and recession were regarded as mutually exclusive, the relationship between the two being described by the Phillips curve. Stagflation is also notable because it has generally proven to be difficult and, in human terms as well as budget deficits, very costly to eradicate once it starts.
    In the political arena, one measure of stagflation, termed the Misery Index (derived by the simple addition of the inflation rate to the unemployment rate), was used to swing presidential elections in the United States in 1976 and 1980.

    http://en.wikipedia.org/wiki/Stagflation
    Last edited by eri; 23-07-2012 at 04:09 PM.
    have you defeated them?
    your demons

  7. #17
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,776

    Default

    Quote Originally Posted by Damap View Post
    Do you think we have to consider stagflation as a real possibility in these times? This changes everything in regard to future capital growth prediction surely?
    Surely not!!!!....inflation is the friend of all those with debt......loan value gets less and less as inflation eats away at it and the income grows and grows as inflation .....wait for it.....inflates it.

    Yay inflation!!!....that nytimes graph thingy (from another thread makes that pretty clear in a nice easy to understand graphical format)

    http://www.nytimes.com/interactive/b...alculator.html

    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  8. #18

    Default “Never trust a statistic you didn't fake yourself!”

    From http://www.nzherald.co.nz/business/n...ectid=10821018

    As for wishing you had been in property, don't overlook all those mortgagee sales of the past few years. (...) Terralink recently predicted this might be New Zealand's worst year ever for foreclosures, and most now involve property investors.
    From http://www.landlords.co.nz/read-arti...rticle_id=4332

    Chambers said his firm had been involved with seven mortgagee sales so far this year – and 84 since 2008. (...) Almost all the properties Chambers had been involved with were private homes – not property investments
    Aye?

  9. #19
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,776

    Default

    Quote Originally Posted by PatMat View Post
    ..... Almost all the properties Chambers had been involved with were private homes – not property investments
    Somebody clever here (in another thread) wondered if a fairly large % of mortgagee sales were caused by the homeowners business getting into trouble (gfc and all that) and the bank calling in the business loan which was using the home as security......pretty feasible explanation for the rise in mortgagee sales vs them evil property investors being the cause of all our woes...... IMHO

    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  10. #20

    Default

    I've probably looked at more open homes that went mortgagee and been to more mortgagee auctions than most and I'd say the main factor is bad budgeting.

    The average mortgagee sale property that I see is an owner who is in the lower socioeconomic area, the house was purchased in 2007 or 08' at the top of the market and they paid retail.
    It's owner occupied and the purchasers had to over borrow for their capacity to make the purchase.

    They haven't done any maintenance during their time owning the property and so the value has dropped a long way under the amount that is still outstanding.

    The owner has a TV worth more than their car, and mags on the car worth more than the TV.
    All in all their TV, Mags and car would probably cover all the mortgage arrears.

    And they have no idea what went wrong.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Mary Holm sets us right...
    By MarkButThis in forum Property Investment (NZ)
    Replies: 8
    Last Post: 19-04-2011, 08:21 PM
  2. From Mary Holm's column 12/6/10
    By muppet in forum General (NZ)
    Replies: 1
    Last Post: 14-06-2010, 05:24 PM
  3. Mary Holm in the shower!!
    By [email protected] in forum Property Investment (NZ)
    Replies: 23
    Last Post: 16-04-2010, 12:26 AM
  4. Mary Holm's "Advice"
    By OllyN in forum Property Investment (NZ)
    Replies: 18
    Last Post: 27-11-2007, 10:12 PM
  5. Mary Holm: Rental not always the way to go
    By muppet in forum Property Investment (NZ)
    Replies: 7
    Last Post: 16-01-2006, 06:22 PM
  6. Mary Holm's column 28 May 05
    By muppet in forum General (NZ)
    Replies: 2
    Last Post: 31-05-2005, 12:42 AM
  7. More Mary Holm
    By muppet in forum Property Investment (NZ)
    Replies: 3
    Last Post: 03-04-2004, 06:29 PM
  8. Mary Holm Q & A
    By muppet in forum Property Investment (NZ)
    Replies: 4
    Last Post: 28-03-2004, 10:03 PM
  9. More Q&A from Mary Holm
    By muppet in forum Property Investment (NZ)
    Replies: 4
    Last Post: 01-03-2004, 10:23 AM
  10. Mary Holm on Due Diligence?
    By muppet in forum Property Investment (NZ)
    Replies: 5
    Last Post: 23-02-2004, 09:01 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •