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AB's avatar

Bernard, there is simply no tolerance for a correction in assets that store value since the GFC. Banks learned that if you own enough leverage to be a macro economic risk, govt and central banks will provide liquidity. The bank system will not allow houses to correct to any degree that creates risk, so they keep capitalising the buyers (whatever category they are) to keep houses trading. Govt, RBNZ and the banks will need to keep finding buyers, this is the cycle they have created. Look for the positioning of the next migration policy to the warmed up.

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Robert McLachlan's avatar

I'm looking forward to your take on this Bernard. I simply do not understand the commentary on Stuff and interest.co.nz along the lines that will have little effect and will not address the housing crisis. On the face of it, the tax changes could see a significant change in buyers starting from Friday and a noticeable effect on the trend of median prices in a month or two.

Kind of surprising how many commenters of Stuff are landlords who charge below market rent, but now, regrettably, will be forced to increase rents. Could the landlords charging above market rent please come forward?

Also, is there any data on the effect of the bright line test so far - how many sales were liable, what the effect of the increase from 2 to 5 years was?

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