NZ dollar hits US76c. How does this affect you?

[Lias]

without sounding too blunt...hmm...nah bugger it...your not all that bright are you?

The organisation I work for is one that on the whole would prosper more with a shit economy and higher unemployment.

Personally I buy alot of stuff online from the US. I'm also struggling to save to buy a house. If the economy completely goes to shit and we see lots of mortgagee sales I might actually be able to afford a house.

Given these two things, I'm all for a higher NZ dollar. Personally it benefits me with cheaper prices, and professionally the NZ economy tanking is likely to offer me increased job security.

Yes I know it's going to shaft farmers like yourself and a large part of the economy if it keeps going upwards, but from a purely personal point of view the high dollar is a good thing from where I stand.

[cowpoos]

Hedging doesn't last forever. It depends on the time-frame of their hedging.

no kidding..lol..but most large exporting companys have a constant hedging policy...so there is always forward exchange contracts or hedging in place...

What I was getting at was blackbirds concern about the income difference from his industry/company's budgeted conversion rate of 70c and the current one of 76c...and I'm guessing he's implying the drop of income for the following finacial year if the dollar stays about this level...

[Drunken Monkey]

The organisation I work for is one that on the whole would prosper more with a shit economy and higher unemployment.

Ah! So you work in a brothel as a madame?

[Lias]

Ah! So you work in a brothel as a madame?

I wish :-(

[cowpoos]

The organisation I work for is one that on the whole would prosper more with a shit economy and higher unemployment.

Neat...work for a government department then?

Personally I buy alot of stuff online from the US. I'm also struggling to save to buy a house. If the economy completely goes to shit and we see lots of mortgagee sales I might actually be able to afford a house.

will you beable to afford the high interest rates a volitile econommy will bring?
along with the banks having alot stricter lending guidlines during a volitile period?

best solutuion if you can't afford a house...get a better job...increase your means...QUIT YOUR GOV DEPARTMENT JOB!!! U KNOW U WANT TO!!

Given these two things, I'm all for a higher NZ dollar. Personally it benefits me with cheaper prices, and professionally the NZ economy tanking is likely to offer me increased job security.

You vote laboar by any chance?

Yes I know it's going to shaft farmers like yourself and a large part of the economy if it keeps going upwards, but from a purely personal point of view the high dollar is a good thing from where I stand.

I'm not a farmer anymore...havn't been for a good 6mnths now
Besides that...the high dollar effect far more that I can be bothered typing about...its also a very topical subject...your right in reguard to the fact that a high dollar has some small benifits to NZ...but as a whole its not ideal at all..as most of GDP is derived from exports..and for the most part urban NZ is supported from the exporting industry's in this country there will be a flow on effect..its a shame NZ hasn't tried to keep up with the top OECD countries by developing a knowledge economy...instead we seem to specialise in selling off our knowledge cheaply to the rest of the world,as well as exporting it in ever increasing numbers!!

[Blackbird]

are you implying that the pulp and paper industry doesn't hedge?? or the comapny you work for?? thats balsy!!

Nah, we hedge but it catches up with us in the end because the cyclical nature of our industry is well known.

[Swoop]

Not good news for those who hold shares on the NZX

I believe the NZX is a pornographic magazine...



WHEN will the price of petrol come down????????

[cowpoos]

WHEN will the price of petrol come down????????

probally when Mcdonalds hamburgers are $1.20 again

[yod]

yep...getting close to house selling time - take the obscene profit and run

[Flatcap]

Yay! Cheaper petrol!

[RantyDave]

I'm also struggling to save to buy a house. If the economy completely goes to shit and we see lots of mortgagee sales I might actually be able to afford a house.

This is precisely the idea. NZ got burned on stock market investments in the 80's (IIRC, I wasn't here) and then there was the dotcom boom/crash so the few remaining people who thought the stock market was a good idea changed their minds ... leading to every man and his dog investing in property. After a while this became it's own self fulfilling prophecy and we now have this dire situation where rental incomes won't pay mortgage costs and nobody can get on the 'bottom rung' of the housing ladder any more. As soon as the property investors start getting bored of this game they'll start selling, and prices will start falling, and more will start selling etc. etc. Hopefully. Although Alan Bollard has been sitting on his arse waiting for it to happen for at least a year now and it hasn't ... hence giving it another little shove. And another. And another. And I hope he has the cojones to keep going, personally, because this crash needs to happen real soon now.

On the plus side it's a sweet time to rent.

How does it affect me? Not very much. But I feel genuinely sorry for those who are about to have their first child and wonder what the fuck happened to the quarter acre dream.

Dave

[scumdog]

Agreed. The interest rate hikes aren't being given time to hit. When they do finally hit, they will HIT...

Why oh why are our interest rates so high in comparison to the USA - and climbing?

And imho the dollar got to where it is naturally - when it falls it will do so naturally. (due to market fluctuations)


Unless some damn gubmint intervenes at the behest of exporters and similar..

[kickingzebra]

This is precisely the idea. NZ got burned on stock market investments in the 80's (IIRC, I wasn't here) and then there was the dotcom boom/crash so the few remaining people who thought the stock market was a good idea changed their minds ... leading to every man and his dog investing in property.

Due diligence done, then busts simply give the biggest opportunities.
Stock market has consistantly out performed the property market for near on 100 years.

After a while this became it's own self fulfilling prophecy and we now have this dire situation where rental incomes won't pay mortgage costs and nobody can get on the 'bottom rung' of the housing ladder any more. As soon as the property investors start getting bored of this game they'll start selling, and prices will start falling, and more will start selling etc. etc. Hopefully.

There is no shortage of property in NZ right now that will more than cover its mortgage repayments and other expenses, and leave a healthy surplus after tax.
Why would the property investors get off the band wagon, when property investing has paid for much of my families exorbitant lifestyle for the last three years?
Getting in at the bottom rung is still pretty easy if you research what you need to do, and don't muck around with too much bad credit. Hell, there are 110% mortgage products offered by at least one major trading bank at present. New Porsche with your house anybody?

Although Alan Bollard has been sitting on his arse waiting for it to happen for at least a year now and it hasn't ... hence giving it another little shove. And another. And another. And I hope he has the cojones to keep going, personally, because this crash needs to happen real soon now.

Alan Bollard is not really trying to curb outrageous property investing as much as consumer spending. From my perspective, the more the OCR goes up, the more people will be scared off the market, the more opportunities I will have to pick up easy deals. Then it is just convincing people that some retarded reporter working for the herald doesn't know what the hell they are on about, and buying a property, though not easy, is not by any means impossible.

On the plus side it's a sweet time to rent.

Yes, keep renting people... Muhahaha... I won't buy a house unless it is paying me, and as I have said, there are plenty out there that do... my last search of trademe alone two weeks ago gave me 30 properties to consider, that all would pay after tax profit.

How does it affect me? Not very much. But I feel genuinely sorry for those who are about to have their first child and wonder what the fuck happened to the quarter acre dream.

Life will be what they make it, but ignorance of the market will seal the graves of the aspirations of those who can but dream.
Knowledge is power, and potentially money.

[Lias]

Neat...work for a government department then?
best solutuion if you can't afford a house...get a better job...increase your means...QUIT YOUR GOV DEPARTMENT JOB!!! U KNOW U WANT TO!!

I don't work for a govt department as such.. I work in the IT department of Te Wananga O Aotearoa, which admittedly gets all its funding from the govt. I wouldnt mind a good govt sector job.. Pay's generally not bad, and the perks like unlimited sick leave are just great.

You vote laboar by any chance?

*Giggle* You havnt read many of my posts have you? I think Rob Muldoon, Margaret Thatcher, & Genghis Khan were all a bit too far leftwing for my liking.

I'm not a farmer anymore...havn't been for a good 6mnths now

My bad

Besides that...the high dollar effect far more that I can be bothered typing about...its also a very topical subject...your right in reguard to the fact that a high dollar has some small benifits to NZ...but as a whole its not ideal at all..as most of GDP is derived from exports..and for the most part urban NZ is supported from the exporting industry's in this country there will be a flow on effect..its a shame NZ hasn't tried to keep up with the top OECD countries by developing a knowledge economy...instead we seem to specialise in selling off our knowledge cheaply to the rest of the world,as well as exporting it in ever increasing numbers!!

Is the high dollar good for NZ as a whole? No.
Is it good for me, in my current employment, financial position etc? Yes.

[cowpoos]

Due diligence done, then busts simply give the biggest opportunities.
Stock market has consistantly out performed the property market for near on 100 years.



There is no shortage of property in NZ right now that will more than cover its mortgage repayments and other expenses, and leave a healthy surplus after tax.
Why would the property investors get off the band wagon, when property investing has paid for much of my families exorbitant lifestyle for the last three years?
Getting in at the bottom rung is still pretty easy if you research what you need to do, and don't muck around with too much bad credit. Hell, there are 110% mortgage products offered by at least one major trading bank at present. New Porsche with your house anybody?



Alan Bollard is not really trying to curb outrageous property investing as much as consumer spending. From my perspective, the more the OCR goes up, the more people will be scared off the market, the more opportunities I will have to pick up easy deals. Then it is just convincing people that some retarded reporter working for the herald doesn't know what the hell they are on about, and buying a property, though not easy, is not by any means impossible.


Yes, keep renting people... Muhahaha... I won't buy a house unless it is paying me, and as I have said, there are plenty out there that do... my last search of trademe alone two weeks ago gave me 30 properties to consider, that all would pay after tax profit.



Life will be what they make it, but ignorance of the market will seal the graves of the aspirations of those who can but dream.
Knowledge is power, and potentially money.

so my estemed friend Mr Zebra...do you think Mcdonalds hamburgers will ever be $1.20 again?