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Housing hyper inflation has resulted in market intervention and the reason why we have arrived at the truely sorry situation we, NZ, and other countries have found themselves. The average person in a host of cities and locations are unable to afford property these days. The cost will prove enormous to economic policy and planning in the future.
Again, is deductibility of expenses related to generating income only a rort if the asset class is Residential Property? Or do you think it should be removed for all investments?
Can you provide evidence to support your claim that house prices are increasing at a rate of at least 50% per month?
You claim to like debate, why are you scared to support your assertions?
It was in her manifesto. The lack of any action until now being more the point. Late in the day, but with a clear crisis in NZ housing looming action of sorts was required. Big question is will policy makers in OZ learn intervention is necessary or are we going on our merry way to doom? I suggest for starters action on tightening up loans will be used . Nothing learnt from recent Royal Commission it appears.
The crisis is a lack of housing -house prices and cost of renting reflect that.
A change in loan to value ratios was implemented sometime ago, and shown to hurt first home buyers. An adjustment of that was shown to favour bigger property investors over smaller ones.
The crisis is a lack of housing -house prices and cost of renting reflect that.
A change in loan to value ratios was implemented sometime ago, and shown to hurt first home buyers. An adjustment of that was shown to favour bigger property investors over smaller ones.
Surely adjustments can be made by government in order to rid imbalance? It is after all in part government intervention at least in Australia that inflated prices. Any incentives to assist First Home Buyers, is usually taking into consideration by the industry in lifting prices.
Want to solve the problem?? Relatively easy, it's called loan guidance (it was used by the BOJ to blow their own bubble initially and then to pop it)
No mortgages for already developed land (meaning no rebuilding loopholes unless the people rebuilding the house is the current owner.). Wanna buy?? Come with the cash if you can. That in a nutshell...maybe too drastic, it can be softened as needed.
There is no speculation that cannot be cured with cutting the proper amount of money supply that feeds that speculation.
Problem is, governments do not have the fortitude to tackle the problem head on...too many constituencies enjoy the gravy train.
It appears that the Arden policy has had some impact. Australia needs to look at some form of control. In the WA paper headlines the other day "House Boom Around The Corner or words to that effect. A case of when border restrictions are lifted and migration takes off. Fact is both nations are in serious trouble.
What form of control on prices would you recommend. Stricter lending policies didn't help much. What next?
Market clearly slowed. Like a giant tanker being brought to a halt at sea, it is neither immediate nor risk free. The rot should have been brought under control long before now. It was an election pledge I believe. What form? Obviously a cessation of government intervention ensuring inflated pricing. Stricker lending policy when it works through does help. NZ market not the over heated potential volcano it was. Over priced? Most certainly. Australia can learn lessons, but the housing/finance industry influence over government needs to cease.
Market clearly slowed. Like a giant tanker being brought to a halt at sea, it is neither immediate nor risk free. The rot should have been brought under control long before now. It was an election pledge I believe. What form? Obviously a cessation of government intervention ensuring inflated pricing. Stricker lending policy when it works through does help. NZ market not the over heated potential volcano it was. Over priced? Most certainly. Australia can learn lessons, but the housing/finance industry influence over government needs to cease.
What is the evidence it has clearly slowed beyond normal seasonality and allowance for the bring forward of sales activity ahead of policy changes? April was another record. Do you think the Govt intervention in NZ will be a success if it merely slows price appreciation, rather than lowering prices?
Stricter lending criteria worked very well in Australia post the GFC via the Responsible Lending regulations, but it didn't impact housing demand or prices.
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