Why are house prices collapsing after Government has rolled out red carpet to speculators and landlord loop holes?

36 Comments

1. Something is not right. A friend observed: “We had our settlement, we own all this land-so why are we renting?”
   The housing market is a fickle beast. In some more advanced countries it is against the law to own homes which sit empty. Here in nz if you own a property in a district apart from the one you live in, you are eligible to cast a vote in that other district’s local body elections. This means more political power to the dreaded landlord class. The cost of a rental is quite frankly staggering, meaning renters are on the back foot and less likely to vote locally due to stress, disillusionment, disconnection and so on. Local council policy will be driven by the loudest voices and the needs of less well to do areas neglected.
   I can’t see nz making economic headway without massive investment in promoting wool as the natural solution to microplastic pollution from synthetic fleece.

   1. gin h Good points, we must be aware of flow on effects of bad governance.

2. I have been house shopping with my daughter this week and have been amazed how many of the so called squeezed middle are selling for less than they paid 3 years ago .This is the direct result of the greed fueled shopping spree they went on in 2021 paying stupid money for average homes .Then they spent up large on flash kitchens and bath rooms as well .We have seen homes where the seller is taking $150k loss just on what they paid before the spend on the nice to haves .
   Those owners maybe more squeezed now than before the election .The fictional tax cuts they voted for have done nothing to un squeeze them as Luxon lead them to think would happen .Infact Luxon had completely squashed them so they are the next wave of bottom feeders .

   1. Poor management of the economy by your lot lead to the high prices which us why they lost office .

      1. bull shit greed by your lot and now its coming back to bite their squeezed arses .Good fucken job they are now getting what they deserve for their race based hate voting .

         1. Spot on reply Gordon .

      2. Speaking of poor management by your lot, unnecessary tax cuts, landlord rebates, axing of pay equity, terrible management of gun law, repealing smoking cessation policy, free prescription, reintroducing pseudoephedrine, etc etc etc.

   2. Yes, gordon walker and that is why the bald one quickly sold a few of his properties.

3. Having spent the last few weeks in hospital fighting cancer we would have no health system without immigrants. The staff can choose anywhere in the World to take their skills and under National or Labour they choose here so it cannot be that bad a place to live .
   With 2 children in Australia that I visit regularly their pro lems are the same as ours but they. do get better pay in some areas.
   Many who go there findcit hard with no family or friends to help out .

   1. NZ was a wealthier country with a smaller population, then the pommes arrived on mass and look at us now, we are a much poorer country for it.

      1. History is that those that states this construction were overwhelmingly commie so we later arrivals just add to the mix

         1. History tells us that the English arrived and stole the land from the Maori, you are English aren’t you Trevor?

      2. The poms coming around the 50s and 60s added a lot to NZ life. And all immigrants would do so, if the fast boys weren’t trying to rort us at the same time we are trying to pickpocket them to get their money.

         rop the BS and limit immigration and the ability of foreign corpse and wide-boys to buy our assets and be lauded for ‘investing’ in NZAO; export the pollies who have been infected with monetarism and class pretensions to the country of the infection origin, the symptoms of which are excluding human values and respect and practical not theoretical economic base, and hey presto, magic, we’d have a country reforming before our eyes.

   2. Good luck with your health, Trevor.

4. Why? Because you can buy more when they’re cheaper.

5. Willis huge arse is now squashing the squeezed middle idiots .

6. “We would have no health system without immigrants.”
   That is because all our nurses have fucked off!
   I teach English to migrants and I know that many of them use employment in New Zealand as a step to migration elsewhere. That is precisely why Australia restricted migration from New Zealand.

   1. Correct stay long enough to get a NZ passport them the bugger off.

   2. Yep, thats true. The work-to-residence category, then PR. Altough I think some on the professional list are given PR up front on arrival. Even with PR I think there are still restrictions on residing permanently in Australia but once that restrction is over you’re good to go. Good luck to them. The grass is greener on the other side so they say, but I’ve known some who’ve gone to Aussie and returned. Not any nurses though.

7. Yes, gordon walker and that is why the bald one quickly sold a few of his properties.

8. The housing market in NZ is displaying a very normal trajectory for an asset bubble. Prices and the total amount of private debt held, both grow. At some point the total amount of debt – mortgage debt in NZ – hit’s a ceiling. And the market participants can’t borrow any more – immigration can offset this but when that slows …
   So house prices are now falling. Is this an economic mistake by the government – I tend to think not – these are intelligent people advised by even more intelligent people. So we must assume that they have economic intention.
   One thing that Willis wants to do is lower some of the lending constraints that are preventing large scale property owners from growing their portfolios.
   There is coherence to what the government is doing – when you look at other economies like the US, UK and Oz – the consolidation of assets into fewer hands – how would you do that if you were in government?

   1. Engineer a recession and higher unemployment to cool the housing market.
   2. Decrease capital controls for asset rich market participants to access housing stock.
   3. Sell off public housing stock to the private sector to increase supply.
   4. Allow house prices to drop and allow large scale purchasing of property by developers and landlords.

   By the end of the process a large transfer of assets will have taken place. Job done. Thank you.

9. The race to the bottom is increasing and the collapse of capitalisim is around the corner .

10. Young people will return when the housing is affordable or we become another Aus State.

    1. trump will give Luxon a golden ticket to alaska or siberia or make him governor of Gazza in return for us becoming a USA milliatry base

    2. No they won’t. They’re gone for good.

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