Hi, Guys, I would like your opinions: I wonder if this Covid-19 continues in NZ and globally, will lots of mortgage sales of properties in Auckland happen? Because I am thinking many possible chain effects, e.g. the bank mortgage holiday will end in 6months and may not extend and some landlords will be in deeper debt, maybe more and on-and-off lockdowns, more business close-downs, more people lost or reduce income, government may can not afford to borrow more money overseas to spread to people, labor party may get voted in in election and will issur more unfair tenancy laws to against to landlords, and more tenants may not pay rentals and landlords are not allowed to do anything about this by law so landlords may want to sell to get out of this game, ect. ect. Cheers.
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If Covid-19 would continue, would lot of property mortgage sales in AKL happen?
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Looking at the picture in whole the low interest policies keep industries but cripple the finance market, there are no margins for healing the global economy. Therefore the Covid-19 debt crisis will strip taxpayer’s savings because govt debts are owned by the taxpayer.
Until now Kiwis (mostly renters) struggle to make a living and to save for their own business, family and comfortable retirement. That and the govt intervention (RTA reform, councils policies, etc) change the landlord business.
My answer is reconciling the investment portfolio by elimination rentals or risks and avoiding to become a “social agency” for a failing housing policies.
And back to the initial question – yes, at debt crisis level mortgage sales of properties in Auckland and somewhere else are the feed for making good investment decisions and the way to start with the first million.
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Originally posted by klauster View PostLooking at the picture in whole the low interest policies keep industries but cripple the finance market, there are no margins for healing the global economy. Therefore the Covid-19 debt crisis will strip taxpayer’s savings because govt debts are owned by the taxpayer.
Yes, taxpayers have to pay for the gummint's borrowings. That's usually done by future taxation. Do you see high inflation eroding the purchasing power of taxpayers' savings? I can't see that even the present crop of socio-commies would appropriate anyone's savings.
What does "cripple the finance market" mean? Does that include the payday loan sharks? The banks?
What do you mean about the finance market not having margins sufficient for healing the global economy? Many people see the finance market as fllim-flam, smoke-and-mirrors stuff.
As I see it, appropriate production and commensurate consumption are the main aspects of any economy, whether or not that be an economy that's 'recovering' or functionally stable.
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Perhaps once the mortgage holiday periods end.
The governments of most western economies are going to print their way out of this because they have no other choice. Have a read of this.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Get Real!
Why oh why do people keep repeating the falsehood of "printing money." (It's not possible to print money. It's only possible to print currency.)
And that's not what's happening!!
Read it again.
Printing money does NOT happen in the way that's all-too-often described.
There is a growth in the credit-go-round, but it does not involve printing banknotes!!
To clarify:
Currency is always money.
Money is only occasionally currency.
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Whatever, they are going to flood the market with liquidity. Happy now?Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Originally posted by Perry View PostPerhaps you could go into a bit more detail?
What does "cripple the finance market" mean? Does that include the payday loan sharks? The banks?
As said by Nick G , ”The governments of most western economies are going to print their way out of this because they have no other choice”, see great depression, bad for wages & consumers...
Since the GFC the finance market hasn’t really recovered documented by dropping interest rates, good times to borrow for investments. Crippling the finance market – I looked at the costs for avoiding insolvency and restructuring of the Deutsche Bank, others are similar.
Strong finance markets result in good economic developments, but I actually see a “zombie” directed economy. It works like that - the taxpayer pays for a corporation’s insolvency (a deal with the govt) to save jobs.... That creates unfair competition, or bad performing companies get subsidized... (socialism tenor, example - supermarkets sell meat, but the local butcher MUST close his business)
Stopping here – socialism, or better – getting government (taxpayer’s) money for bad business decisions leads to the absurdity of a zombie economy.
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Originally posted by klauster View PostAnswers depend on views may differ - I look at the debt based finance system, interest rates below 5% creating stress onto the banking system and the negative interest in EU causing huge problems for people’s savings and eroding the retirement schemes.
As said by Nick G , ”The governments of most western economies are going to print their way out of this because they have no other choice”, see great depression, bad for wages & consumers...
Since the GFC the finance market hasn’t really recovered documented by dropping interest rates, good times to borrow for investments. Crippling the finance market – I looked at the costs for avoiding insolvency and restructuring of the Deutsche Bank, others are similar.
Strong finance markets result in good economic developments, but I actually see a “zombie” directed economy. It works like that - the taxpayer pays for a corporation’s insolvency (a deal with the govt) to save jobs.... That creates unfair competition, or bad performing companies get subsidized... (socialism tenor, example - supermarkets sell meat, but the local butcher MUST close his business)
Stopping here – socialism, or better – getting government (taxpayer’s) money for bad business decisions leads to the absurdity of a zombie economy."DEBT BECOMES IRRELEVANT WITH INFLATION".
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Originally posted by Frezzinghot View PostYes great example, why have all the butchers closed, even the pizza joints and KFC etc, just the other day in a PNS they were still frying chicken and chips and selling direct to public, if ok for the goose why not the gander?
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Originally posted by Nick G View PostWhatever, they are going to flood the market with liquidity. Happy now?
Folks here on PT might will likely know that people are not being veracious when they talk loosely about printing money. ("print their way out," as you put it.) Most PT forumites know the difference between money and currency. 99% of the population does not.
There is going to be an expansion of credit. (Or relaxation of credit limits.) In turn, that means more means-of-exchange (buying stuff) in the economy that is not matched by any more products and services in the economy. Hence inflation and an erosion of the purchasing power of the dollar.
As for "whatever," do you accept that there is going to be little - if any - 'printing of money?' (Actually, to be accurate, that should be printing of currency.)
Currency is always money.
Money is only occasionally currency.
Even cartoonists get it wrong.
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