NZ House Price Crash – What does Jacinda do when Grant’s austerity economy fails?
While the Reserve Bank fights with the 6 big Australian banks and insurers to ensure NZ can whether the next global down turn, more evidence that NZs housing market is in danger…
New Zealand at risk of a house price crash: Bloomberg
New Zealand and Canada are the two countries with the most unsustainable housing markets in the world, according to Bloomberg.
Bloomberg economist Niraj Shah’s “housing bubble dashboard” showed the two countries holding the top spots.
They have the highest cost of housing compared with wages, beating Australia, the UK, Norway and Sweden – which are also vulnerable.
…Grant and James Shaw locked NZ into an austerity budget so as to not spook our corporate overlords and he won’t tolerate debt much higher than 20% despite being able to borrow billions at incredibly low interest rates which could be used to fund the infrastructure costs to counter the mass immigration policies of 2000-2019.
The question is what does Jacinda do when Grant’s austerity budget fails?
We’ve seen the damage of neoliberal politics in the housing and in the community, who does Jacinda save and who does she allow burn in an economic meltdown?
Dairy Farmers: They are up to their eyeballs in debt from dairy intensification. To get them to agree to helping everyone else, you need to help them and this could be a once in a generation move to get them to change their allegiance to National. Underwrite all Dairy farm debt on the agreement that they revert from Dairy to planting forests.
First home buyers: You can’t leave them for the wolves of the Market, under write their mortgages through Kiwibank.
Mum and Dad’s investment property: You can’t wipe out an entire generations wealth base, again underwrite one property over the family house through KiwiBank.
Corporations: Let them burn
Banks: Only save Kiwibank, the others can burn.
Property Investors: Anyone with more than a family house plus one property investment can burn.
Tax amnesty for small and medium business: They are the ones who will suffer the most, allow a tax amnesty with the usual penalties cancelled.
Welfare: Everyone will be scrambling for some type of welfare, it will need to be increased, and the draconian punitive crap dumped.
Immigration Freeze: We will need to freeze immigration at a time of economic crisis because everyone will be fleeing.
the current government needs to spend up before the next election and present their economic well-being plan
They need to provide housing for all New Zealanders
How many New Zealand houses are unoccupied and left empty….while they are owned by Chinese overseas strategic investors in New Zealand housing and surrounding land?
(there needs to be a thorough audit of NZ empty houses….and overseas owners should have a huge tax placed on them or forced to sell)
This is just one example of empty housing and the stealth of overseas investor takeover:
An historic building in Christchurch burnt down the other day owned by overseas Chinese investors who had left it empty for years while they thought about putting a hotel on the land .
It was bought under a category 2 heritage listing and now it is burned down probably to be replaced by a high rise hotel skyscraper ( this should NOT be allowed)
‘Christchurch’s Antonio Hall ravaged by fire as heritage fans fear ‘demolition by neglect’ ‘
http://www.stuff.co.nz/the-press/news/114210871/antonio-hall-ablaze-in-christchurch
‘The mystery of Antonio Hall’
http://www.stuff.co.nz/the-press/christchurch-life/75433221/?rm=m
…”Antonio Hall was bought by Wellstar Co Limited in 1993. A slow decline into its decrepit condition started then. Wellstar reportedly had plans to turn the site into motels but nothing came of them. It remained unoccupied and earthquakes only accelerated damage caused by years of neglect.
According to Companies Office records, Wellstar’s shareholders are Ching-yang Chiu, Shern Yun-shian Chiu and their daughter Wei-lun Chiu who provided a Fendalton address but are understood to spend much of their time in Taiwan. The owners paid $1.9 million for the property. The current rateable value, according to the Christchurch City Council website, is $3.67m. The land, which totals nearly 1.5 hectares, is valued at $2.75m. The “improvements” are valued at $920,000.
Everyone who passes on that busy road wonders: what, if anything, is going to happen to Antonio Hall? It is prime real estate. Attempts to contact the owners for this story were unsuccessful. A small group of active locals who are trying to restore the property also maintain a website detailing Antonio Hall history. When asked if they could provide a tour, a spokesman replied courteously that “the owners are quite media-shy and our arrangement with them forbids our group of volunteers from talking to the media”…
New Zealand is losing its housing heritage and its land.
i think it is going to be a bit more complicated a lot of money has been borrowed off shore a lot interest only loans been written (ponzi finance think sub prime or no doc loans )we don’t really know the full extent of what the banks have been up to how much debt is off balance sheet what are there derivative exposure is .we know they are using cover bonds to finance there operations.
https://youtu.be/bitkhd8DYx8
kiwi saver is being looted to support the ponzi the young are being eaten
these guys are doing a great job of reporting the property melt down in Australia and new Zealand
https://www.youtube.com/channel/UCKWDscRjYFTD1KHsmow4-bQ/videos
the three part conversation with Steve keen is must view.
https://youtu.be/fn0zNIkepbA
https://youtu.be/KgJOuA9Bkto
https://youtu.be/uUXKNAQIdO0
Martyn, a sovereign state using its own currency does not need to borrow (or rely on tax receipts) to fund spending. Please catch up with MMT. Otherwise, completely agree with you, especially about planting trees.
if we keep bringing in more immigrants we will be losing more than our housing heritage and land we will be losing control of our country