West Coast & Gisborne shine in REINZ's landlord league table for capital gain & yield; France stops British trucks at Dover; Global markets shudder on virulent new strain; US finally agrees stimulus
irretrievable house price situation in NZ now. Watch, the government, RBNZ and the banks collectively set policy to remove any possibility of a major house correction in the future. Unfortunately the resources that pay for these houses, renters incomes and incomes in general will be under pressure in NZ for the foreseeable future despite the common view that Covid has not hurt NZ very much! NZ can not prosper by moving funds around that are already in NZ, look outside right now, does the govt believe that NZ's GDP is going to increase with the disruption that is growing in 2021! Based on NZ's comfort with new domestic house debt, the answer is yes! The RBNZ has destroyed any possibility to raise interest for savers, they have created a medium term (at least 5 years) future of very low interest. NZ's growth will most likely come from NZr's returning with new funds back to NZ and join the house buying frenzy.
irretrievable house price situation in NZ now. Watch, the government, RBNZ and the banks collectively set policy to remove any possibility of a major house correction in the future. Unfortunately the resources that pay for these houses, renters incomes and incomes in general will be under pressure in NZ for the foreseeable future despite the common view that Covid has not hurt NZ very much! NZ can not prosper by moving funds around that are already in NZ, look outside right now, does the govt believe that NZ's GDP is going to increase with the disruption that is growing in 2021! Based on NZ's comfort with new domestic house debt, the answer is yes! The RBNZ has destroyed any possibility to raise interest for savers, they have created a medium term (at least 5 years) future of very low interest. NZ's growth will most likely come from NZr's returning with new funds back to NZ and join the house buying frenzy.