Bright line test up to 10 yrs; Landlords' ability to claim interest for tax purposes to be phased out over 4 yrs; Price & income caps lifted for First Home Grants;New $3.8b infrastructure fund
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.
Agree on that. No mention of migration at news conference, but both parties agree on a 'big NZ' policy, but without the state-funded infrastructure. Rinse and repeat.
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?
Bernard, I dont know what i am missing here, but it must be pretty profound. I have assembled a proposal to the PM, (delivered now 3 years ago) where we can build up to 100,000 new high quality high rise residential units that would sell for around $400,000 per 110 sq m unit. The buildings should be within 25 km of the Viaduct. The PM is totally uninterested. Can you perhaps give me some hints as to why? Um...to help you there...I am a retired economist, with some 10 years managerial experience in North American Construction.
All the current government proposals - all of them - are petty, trivial and totally unable to come to grips with the nature of the problem. If anything, the Government proposals look very much like an attempt to pretend to address the issue without actually changing anything.
Hi David, More than government' action it is reintroduction of LVR That may have some affect, though not as much as last time as most investors have build equity to support 40% deposit and has Interest Only loan to service the mortage. INTEREST ONLY LOAN could be a silver bullet or as close to it was possible if implimented in right earnest and timely.
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.
Agree on that. No mention of migration at news conference, but both parties agree on a 'big NZ' policy, but without the state-funded infrastructure. Rinse and repeat.
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?
Bernard, I dont know what i am missing here, but it must be pretty profound. I have assembled a proposal to the PM, (delivered now 3 years ago) where we can build up to 100,000 new high quality high rise residential units that would sell for around $400,000 per 110 sq m unit. The buildings should be within 25 km of the Viaduct. The PM is totally uninterested. Can you perhaps give me some hints as to why? Um...to help you there...I am a retired economist, with some 10 years managerial experience in North American Construction.
All the current government proposals - all of them - are petty, trivial and totally unable to come to grips with the nature of the problem. If anything, the Government proposals look very much like an attempt to pretend to address the issue without actually changing anything.
Hi David, More than government' action it is reintroduction of LVR That may have some affect, though not as much as last time as most investors have build equity to support 40% deposit and has Interest Only loan to service the mortage. INTEREST ONLY LOAN could be a silver bullet or as close to it was possible if implimented in right earnest and timely.