RBNZ ends money printing that helped boost net wealth of asset-owning households by $402b to $2.3t in a year of Covid; Survey finds 88% of NZers believe the young are now locked out of home ownership
Bernard, lets be honest, the RBNZ gave a handout to banks so they wold keep lending, banks chose mortgages over business loans and went to war on rates and people in positions to draws this money down on housing do so. Now we have very high prices, rents clearly going up. Rents will be met by real world economic constraints for renters (meaning low wage inflation) so the squeeze will be on all non home owners. Effectively the government has made home ownership the key to success. Given the scale of the prices this will take generations to unwind. Lets see if this govt opens immigration, then we can see more pressure on infrastructure and stage 3 or 4 of the housing boom.
Bernard, lets be honest, the RBNZ gave a handout to banks so they wold keep lending, banks chose mortgages over business loans and went to war on rates and people in positions to draws this money down on housing do so. Now we have very high prices, rents clearly going up. Rents will be met by real world economic constraints for renters (meaning low wage inflation) so the squeeze will be on all non home owners. Effectively the government has made home ownership the key to success. Given the scale of the prices this will take generations to unwind. Lets see if this govt opens immigration, then we can see more pressure on infrastructure and stage 3 or 4 of the housing boom.