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11-08-2024, 10:53 AM
#2841
Interesting article in the herald on Saturday, Mary Holm, in the herald. Not so much the article and the question asked but the statistic s that popped up in the article.
https://maryholm.com/nz-herald-10-august-2024/
The "Sell rental now or later?: article. The house cost to income graph is interesting. Remind the boomers they were paying 20% on their mortgage to keep the house values within 2-3 times their annual income.
Inflation targeting happened in the early 1990s and it appears that after 2008-2009 they just stopped pretending that the system was not rigged for the already wealthy and the well off and that they have the tacit support of the RBNZ, National and Labour. Throw that at David Seymour next time he suggests less government intervention, funny that ACT have not targeted this as it seems the most egregious example of govt intervention to benefit a sector of society over the rest. Although to be fair to David that is not race based it is wealth based.
More interesting was this.
He notes that the Reserve Bank has forecast 2.3 per cent house price growth this year, 5.4 per cent next year, and 5.8 per cent in 2026 — while wages are forecast to grow 2.9 per cent, 3.3 per cent and 3.4 per cent in those three years. If those numbers turn out to be correct, the house price to income ratio will fall a bit this year and rise a bit in the next two years.
These fu*king aholes are forecasting a rise in inequality that they are causing. Bring on the rate cuts we need to boost the "wealth effect" - Yeah Right.
Next time anyone from the RBNZ or a politician of either major party expresses concern about housing affordability, I would suggest they are being insincere and if they ever have the gall to do it within reach of me, I will be inclined to give them a bunch of fives.
Last edited by Aaron; 11-08-2024 at 11:51 AM.
Reason: Yeah Right
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13-08-2024, 11:05 AM
#2842
Not sure I understand his point exactly, I guess it is in the headline. Why interest rates and real estate are behind the growing generational divide in Australia
https://www.abc.net.au/news/2024-08-...ates/104215946
"The downside of deregulation" is the heading of one paragraph and the charts used speak volumes. Someone better tell the Minister for deregulation that sometimes there are downsides.
In fact the interest rate rises are increasing returns for boomers with no mortgage and savings so I am not sure where this takes us as the additional travel etc may not be helping the inflation rate to come down.
Potentially this is a good thing as in another decade or so, enough boomers might see price stability and higher interest rates as a good option once they have sold down and purchased their Oceania retirement unit.
Last edited by Aaron; 13-08-2024 at 11:08 AM.
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Headline this morning in the herald
https://www.nzherald.co.nz/nz/offici...FGI7X77GMCOIE/
Pundits are now picking further cuts to home loan rates in coming months which will bring relief for struggling Kiwis and likely breathe new life into the property market ahead of the traditional spring surge.
Struggling Kiwis? will the rate cuts flow through to renters?
It was a surprise rate cut apparently.
No mention regarding the real reason for the cuts, saving jobs and helping out struggling businesses. Adrian Orr is not voted in so he does not have to pander to homeowners like the politicians does he?
I know when rates were near zero building supplies companies were increasing their prices almost monthly, that's a good thing right?
Lots of houses and lots of people a real vision for NZ. Same thing happening in Australia but at least the Aussies won't be asking their young people to pay for their retirement as well after being locked out of the housing market by low rates and easy money.
Last edited by Aaron; Today at 08:20 AM.
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