Helping to fix aucklands housing boom....

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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 6:28pm
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Titanium
Titanium


Joined: 07 May 2011
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As much as i hate to say this ,as our ecconomy grinds to a halt the Auckland housing ponzi scheme is probably the only thing keeping us afloat.
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Post Options Post Options   Likes (0) Likes(0)   Quote Contract Quote  Post ReplyReply Direct Link To This Post Posted: 01 Sep 2015 at 9:58am
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Platinum
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Joined: 23 May 2008
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Trouble is ~ we are all wanting our cake & eating it too !
The way interest rates are going is going to end up presenting another whole new set of problems. My 93 year old mother got to the stage that she was unable to look after herself. She was widowed at 48 and has struggled her entire life. She sold her $400,000 house in Mt Roskill for $1mill (to an Asian speculator). With that money, she bought a serviced apartment in a well known retirement village. The "left over" money was invested as her "comfort fund". 12 months ago ~ she was getting $2500 per month (before tax). Now, she gets $1,900. Next year, she will be lucky to get $1,500 (before tax !)
That is a 50% DROP in earnings. I challenge any reading this that they could live without 50% of their earnings.
The house prices are caused by house shortages. Period. Forget the Asian investors. If they were taken out of the equation ~ their place would be taken by Kiwi investors and prices may drop very marginally. We need more land made available, we need more tradesmen and we need less compliance costs. This problem that we are faced can only be fixed by a bi-partisan approach to things.
I heard on the radio today that some grissel gripper wanted to drastically increase our refugee intake. Yeah right ~ lets bring another 5000 families in and increase the housing shortage even more. It will be fine for me (in Auckland). My house will go up in value another few hundred K. It will do nothing for my kids or grandchildren though.
Already, one of my children (and their family) are talking of shifting to Tauranga / Papamoa. It is probably the right answer for them (purely because of house prices) ~ but it is going to cause a huge upheaval in the whole family infrastructure. Who will baby sit etc etc ~ when the grandparents are no longer in the same city ?) I just hope their marriage will last the extra pressure.
Rant over !!!!
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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 01 Sep 2015 at 1:19pm
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Titanium
Titanium


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Very good rant and to the point. Huge social dislocation taking place right now in Auckland.
And soon in other places as well as hopefuls save their deposit ,only to see it devalue as prices rise in the provinces. Auckland housing is big business. Overseas speculators bring in overseas funds to a ailing economy. If the country lives beyond its means then some of the family jewels get sold off to bring in the cash. Dont agree with it ,but that is how it is. And when we have zero interest rates the problem will get worse.
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Post Options Post Options   Likes (1) Likes(1)   Quote v8-coupe Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 12:55pm
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Titanium
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Joined: 20 Jul 2002
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Points: 4108
Originally posted by cirrus cirrus wrote:

Very good rant and to the point. Huge social dislocation taking place right now in Auckland.
And soon in other places as well as hopefuls save their deposit ,only to see it devalue as prices rise in the provinces. Auckland housing is big business. Overseas speculators bring in overseas funds to a ailing economy. If the country lives beyond its means then some of the family jewels get sold off to bring in the cash. Dont agree with it ,but that is how it is. And when we have zero interest rates the problem will get worse.
 
Problem is we are now already one hundred billion odd in debt and rising daily. We no longer have/own the means to pay it back. Selling houses in Auckland like an out of control Monopoly game does not help pay that back at all.
Per head of population we are at the same debt level as Greece.
It is estimated that foreign investors are sucking between seventeen and nineteen billion dollars out of the economy annually and sending it overseas.
No one seems to want to talk about this. All the media reports on is the flag debate and chasing an internal surplus.
The so called experts tell us not to worry as our debt ratio is still ok and we can continue to borrow.
I say, any debt is bad if you no longer have the means to pay it back.
The conspiracy theorist in me says this debt and the industrial reforms pushed through are related to the incoming TPPA. It will make it easier for the overseas lenders to waltz in and take what they want at bargain basement prices while the new industrial laws are moved into line with those of American businesses. Shhhhhhhh! ;-)
Legasea Legend Member
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Post Options Post Options   Likes (0) Likes(0)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 1:25pm
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Titanium
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No doubt we are heading for some bad times in the future, as V8 says we are far too deep in debt.  Any government who think borrowing billions of dollars from overseas to finance tax cuts to make people like them is a good idea are obviously not very financially clever.  This is exactly what the Greek government did, and look where that got them.  But looking on the bright side although NZ may soon be owned by overseas corporations and banks they can't actually package it up and take it anywhere, so we can still enjoy it.
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Post Options Post Options   Likes (1) Likes(1)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 2:07pm
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Titanium
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A further 17.2 billion of Chinese money tipped to be poured into the N.Z housing market as China changes rules--interest.co.nz .

No longer a N.Z market but an international buy zone,along with Melbourne ,sydney ,San Francisco ,London etc. All bubbles as QE money finds a home.
Even Kiwi investors now finding costs to investment return via rent dosent add up in auckland.
So N.z is regarded as a safe place to park money & invest.
Just wonder how much of that money will end in Dairy farms.
Our debt is obviously a concern to credit rating agencies. Despite record bank profits here ,they saw fit to downgrade the ratings of 3 of our banks last week.
Suspect this will not end well.


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Post Options Post Options   Likes (0) Likes(0)   Quote pjc Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 2:34pm
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Titanium
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seems to be confusion over debt.
Personal debt ie mortgages finance company borrowings out weighs what National debt (what the government borrows)
There is a world crisis coming soon,oil per barrel is expect to be $15 to $18 soon rather than the $120 per barrel that is was.
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Post Options Post Options   Likes (0) Likes(0)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 2:38pm
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Titanium
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Points: 6769
But the one thing personal debt and national debt have in common is that it all comes from outside NZ, which is the problem.
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Post Options Post Options   Likes (0) Likes(0)   Quote pjc Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2015 at 3:37pm
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Titanium
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Yep all our debt is from overseas because all our banks are foreign owned
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