BREXIT - some assistance required

[Ocean1]

That's not what I'm saying and you know it

Aye, remains true that although average house prices are double what they once were so are the houses.

Any price increases over and above that are driven by just one thing: Cashed up boomers who thought they'd saved enough to manage retirement, only to find that traditional investments nowadays generate 2%, which won't even cover inflation. Do you really think they'd pay for a rental investment earning 3.5 - 4% (and all it's headaches) if that wasn't the case?

If you really want to fix the housing "crisis" make 90sq ft bungalows to standards first home buyers can afford, on land sold for what it costs to supply and the whole problem goes away.

[Ocean1]

Having been to a few house auctions around Auckland, there is a lot of truth to the statement.
Whether or not they hold NZ Citizenship is another matter entirely.

Must be a Wellington thing as all the pollies say the same thing.

Auckland is 24% Asian. What percentage turning up to open homes are they allowed?

[Ocean1]

And generally irrelevant as my observation in the ChCh market is that they're paying with family money from offshore...
We have a high asian student population here - a very high number of whom have bought houses.
Whether or not they stay here post graduation, the property is a family investment.

I'd have thought Mr Ocean would have preferred to have seen the investment in property discouraged in favour of financing local businesses...

If local business were a better investment then most of that cash would be there in a shot.

And anyone that's buying anything based on it's recent price movements alone was asleep in history class and deserves all they get.

[Akzle]

If you really want to fix the housing "crisis" make 90sq ft bungalows to standards first home buyers can afford, on land sold for what it costs to supply and the whole problem goes away.

my idea's better

[mashman]

The only people bitching about that are those who don't bother.

Fuckem.

Wrong.

No.

[Jin]

The Greeks didn't borrow the money it was politicians who did it. They don't pay taxes because it's just more funding for a corrupt socialist system.

[Voltaire]

Comparison of Tax Evasion Rates
as percent of GDP
2012 estimate[14] country % of GDP
Estonia 28.6
Greece 24.3
Latvia 21.6
Italy 21.6
Belgium 17.1
Germany 13.5

So much for Honest Fritz.

I looked up NZ and its about 4.8%.

Clearly the Tradies here are not charging enough for cashies.

[YellowDog]

Comparison of Tax Evasion Rates
as percent of GDP
2012 estimate[14] country % of GDP
Estonia 28.6
Greece 24.3
Latvia 21.6
Italy 21.6
Belgium 17.1
Germany 13.5

So much for Honest Fritz.

I looked up NZ and its about 4.8%.

Clearly the Tradies here are not charging enough for cashies.

It's not just tradies!

In 2012, I had to conduct a business transaction with a government department in Cyprus (you know: thanks for your cash, now here's some worthless shares in return), in order to get a copy of a document.

The amount I had to pay was around EU20. "No, we don't take Paypal, we don't accept credit cards, you can't have our banking details: CASH ONLY."

"But sending cash through the post is not legal anymore." I protested "and a courier would charge around NZ$120"

"Either you want a copy of the document, or you don't? - Have a nice day .............."

Those figures might be wrong for some countries

[James Deuce]

Aye, remains true that although average house prices are double what they once were so are the houses.

Any price increases over and above that are driven by just one thing: Cashed up boomers who thought they'd saved enough to manage retirement, only to find that traditional investments nowadays generate 2%, which won't even cover inflation. Do you really think they'd pay for a rental investment earning 3.5 - 4% (and all it's headaches) if that wasn't the case?

If you really want to fix the housing "crisis" make 90sq ft bungalows to standards first home buyers can afford, on land sold for what it costs to supply and the whole problem goes away.

The underlying issue is that Kiwis have been taught, expensively, that the only investments that net a reliable return are major banks and property. Everything else is just a good way to be wiped out overnight, usually at the whim of Japanese housewives or a thieving finance director.

I'm sure you mean 90m2. 90sqft is a bathroom. The building course at Weltec is doing just that. They seem to be shipping dozens of them. Don't know where they go though.

[YellowDog]

Are houses really more expensive?

$500,000 loan at 11.5% interest (as I paid in 2007) = $57,500 p.a. in interest.
$1,100,000 loan at 5% interest (which I now pay) = $55,000 p.a. in interest.

$500k in 2007 didn't get you much of an Auckland property.
$1.1m today gets you something a lot nicer.

No need to pay off any capital, inflation will pay that for you.

Just saying

[Voltaire]

Are houses really more expensive?

$500,000 loan at 11.5% interest (as I paid in 2007) = $57,500 p.a. in interest.
$1,100,000 loan at 5% interest (which I now pay) = $55,000 p.a. in interest.

$500k in 2007 didn't get you much of an Auckland property.
$1.1m today gets you something a lot nicer.

No need to pay off any capital, inflation will pay that for you.

Just saying

Shush...your giving the Banking sectors secrets away.

[Jin]

In a free market prices are never the problem. They simply provide and transmit information. Anyone who thinks the problem with the housing market is one of price is quite simply ignorant. However they are in good company with the likes of politicians, treasury, rbnz morons etc.

[YellowDog]

Shush...your giving the Banking sectors secrets away.

Oh shit yes. I pay 5% on the old amount and not on $1.1m. I ain't that stupid

Unlike rent, my house is now so much cheaper to own.

[James Deuce]

In a free market prices are never the problem. They simply provide and transmit information. Anyone who thinks the problem with the housing market is one of price is quite simply ignorant. However they are in good company with the likes of politicians, treasury, rbnz morons etc.

Only applies if you already own property. The bar to entry has been set too high. I think people who can't see that are morons, quite frankly.

[YellowDog]

Only applies if you already own property. The bar to entry has been set too high. I think people who can't see that are morons, quite frankly.

Needing a 20% deposit is the problem. Most of my friends purchased with less than a 5% deposit.

There you go.... problem solved. It's the over cautious RBNZ that's the problem