ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

"To be eligible for NZ Super, you need to be aged 65 or over and be a legal resident of New Zealand. You can get NZ Super even if you’re still working.

Currently you need to have lived here for 10 years since age 20. Starting in July 2024, however, this residency requirement is gradually increasing to 20 years by July 2042.

You'll need to have lived in New Zealand, the Cook Islands, Niue or Tokelau (or a combination of these) for 20 years since age 20, with 5 of those years from age 50 or older.

https://sorted.org.nz/guides/retirem...till%20working.

A bit disingenuous of me suggesting old people could just come in and pick up the pension. I imagine only healthy oldies with plenty of capital will be welcomed to our shores. You would hope so, it is not like they would have a long working life and much to contribute to the country otherwise. I guess if they can afford NZ house prices it would help keep the housing market buoyant.

[Aaron]

A bit disingenuous of me suggesting old people could just come in and pick up the pension. I imagine only healthy oldies with plenty of capital will be welcomed to our shores. You would hope so, it is not like they would have a long working life and much to contribute to the country otherwise. I guess if they can afford NZ house prices it would help keep the housing market buoyant.

Thinking about it further Chris Luxon is opening the residential market to foreigners isn't he, so wealthy foreigners can just buy the houses without worrying about immigration. Chris has got all the solutions for NZ.

A heart warming story in the herald today David Hisco ex ANZ bank doubled his money over 6 years making $3mill on the sale of his $6mill property. Admittedly 2018 to 2024 was a great time for rich people thanks to Labour and Adrian Orr. What I liked most about the story is that David featured in an earlier discussion I had about flat taxes and I was worried he was paying tax on every dollar of his $3mill plus salary while others were getting tax free capital gains. Turns out David is as well, great that Chris Luxon's focus is on helping A-listers as C-listers and bottom feeders are dragging us all down.

https://www.nzherald.co.nz/business/...BSNIZYGK6PARQ/

David came up in a discussion I had with smart people proposing a dumb idea (flat tax). See here if you do not understand progressive taxation.

https://www.sharetrader.co.nz/showth...l=1#post763732

Mind you the median house price went up from $520k to $800k so most asset owners made at least 54% although a simple annualising it is only 9% tax free a year.

Interesting that in the same paper today, actual productive hard working dairy farmers are doing it tough with rising costs (inflation) eating into their profits. Residential property is great as there are very few inputs once the house is built, although outputs are limited too, but the price of houses should be the focus for any NZ govt as that is where the average voter and politician's wealth resides.

https://www.interest.co.nz/charts/re...an-price-reinz

Interesting chart. What was the OCR over that time .25%? Funding for lending started in Dec 2020. You know what they say "correlation is not causation" but it makes you wonder what/who might be responsible for high house prices in NZ?

Bring on the rate cuts and get the wealth effect cranking Adrian, it worked a charm last time and no reason to expect it to be any different when you do it again..

[Aaron]

More concerns about RBNZ policy.

https://www.oneroof.co.nz/news/wealt...ys-agent-45761

Michael Boulgaris told OneRoof that households in the city’s wealthier enclaves are selling off their jewels, sports cars and designer handbags to pay the bills.

The agent, who sells multi-million-dollar homes in Auckland’s prized double grammar zone, said auction houses were struggling to cope with the volume of luxury goods clients were putting up for sale.

In a newsletter sent out last week, Boulgaris wrote: “It’s tough out there and I am not denying the many challenges in real estate while mortgage rates are sky-high, which creates too many hurdles for buyers.

Mortgage Rates are SKY HIGH according to Michael and they are causing all these problems, surely the solution must be low interest rates and easy money. Michael doesn't work on an hourly basis so inflation stealing his purchasing power and therefore time as that is what we trade for wages may not be as big a problem. Certainly anything that slows down the real estate market is bad news for him.

According to this RBNZ graph Michael appears to be correct. Interest rates have only been this high for 5 years over the last twenty.

https://www.rbnz.govt.nz/statistics/...interest-rates

Although I cannot find a chart to support my belief I think historically lets say 9% is not sky high, although 9% does seem quite high in our current world. I understand the banks were stress testing at 8%.

What is the solution to this disaster, low interest rates? negative interest rates? easy money? I think these solutions will sound wonderful to Michael and overleveraged idiots who spent more than they could afford but I do not think you should screw over the average person be they worker, saver or investor to help these people out. I still think helping the people who are struggling to put food on the table should be the priority.

Sad that the RBNZ and govt hold so much power through manipulating interest rates and printing money. Surprising David Seymour and ACT have never once suggested trying to get a free market in such things, I doubt it is ACT supporters who are having to sell the family jewels they appreciate the need to look after yourself and not rely on govts and govt policy to hand you wealth.