Grant Robertson tells the RBNZ to 'take housing into account' when setting both monetary policy and financial policy. It's unlikely to lift interest rates, but may lead to DTIs for landlords
Bernard, Thank you for your time putting this together. I saw you on Breakfast this morning and after reading a couple of your posts I have a few questions.
You state we are short 100,000 houses, where is this data from?
IMHO Kiwisaver although as a short term fix is good for some of the first home buyers has helped push the increase in house prices, if buyers in a market now have more to spend, then the market will respond and buyers will continue to bid up the house prices. I agree with one of your readers comments that we need to be looking at solutions, for the Kiwisaver, I may not have one but I would like to explore if this is helping or hindering overall.
As we know from watching too many crime dramas, "follow the money" seems to be a good way to discover where some of the excesses are headed. Do you think that the incentive structure that the real estate agents have is driving some of the market?
In this article you comment that infrastructure such as railways need to be included in development architecture? Is this not archaic technology, would we not be better off exploring better transport modalities?
This morning on Breakfast (TV) you stated that 7% of disposable income goes to service debt. Can you point to where you get this number from? NZ Stats has two figures, 1. Average annual housing costs are about $17,900 NZD out of an average household income of $107,000 2. For every $100 of household expenditure $21 goes into housing. Both these numbers are well above the 7% figure.
Bernard, Thank you for your time putting this together. I saw you on Breakfast this morning and after reading a couple of your posts I have a few questions.
You state we are short 100,000 houses, where is this data from?
IMHO Kiwisaver although as a short term fix is good for some of the first home buyers has helped push the increase in house prices, if buyers in a market now have more to spend, then the market will respond and buyers will continue to bid up the house prices. I agree with one of your readers comments that we need to be looking at solutions, for the Kiwisaver, I may not have one but I would like to explore if this is helping or hindering overall.
As we know from watching too many crime dramas, "follow the money" seems to be a good way to discover where some of the excesses are headed. Do you think that the incentive structure that the real estate agents have is driving some of the market?
In this article you comment that infrastructure such as railways need to be included in development architecture? Is this not archaic technology, would we not be better off exploring better transport modalities?
This morning on Breakfast (TV) you stated that 7% of disposable income goes to service debt. Can you point to where you get this number from? NZ Stats has two figures, 1. Average annual housing costs are about $17,900 NZD out of an average household income of $107,000 2. For every $100 of household expenditure $21 goes into housing. Both these numbers are well above the 7% figure.
Sorry Bernard but I must disagree with the importance that you place on tax changes to fix the housing problem.
If we have a shortage of housing then only building more will make a change.
Changes in tax will however change who owns the houses .
I remain unconvinced that tax changes will house more people.