Discussion:
An empty head attached to a mouth
(too old to reply)
JohnO
2021-03-16 20:47:56 UTC
Permalink
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Crash
2021-03-17 01:34:18 UTC
Permalink
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.

The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.

So who is going to be the PM that risks all this?


--
Crash McBash
James Christophers
2021-03-17 04:04:56 UTC
Permalink
Post by Crash
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.
What kind of a plan could there be that would not compromise the eocnomy even further than it is now?
Post by Crash
The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.
So who is going to be the PM that risks all this?
The ulitmate poisoned chalice?

In New Zealand it's an irreversible[1] greed-and-fear-driven one-way upward ratcheting of property prices that favours the already-ahead wealth-extraction fraternity whose behaviour also contributes least to the nation's real productivity. As wealth-extractors they are, effectively, sucking the lifeblood out of the economy, fully aided and financed by the profit-exporting foreign-owned banks as they take their cut. This is the organsised, systematic hollowing out of the economy and those who must live within its provisions and the damage the wealth-extractors are creating with a vengeance. The road to economic penury and perdition.
[1]For irreversible read 'inevitable doomsday'.

Those in this country least at risk are mostly those seniors owing and living in their single, manageable, 100% unencumbered, up-to-date, freehold property plus sufficient liquid[2] assets to see them through the immediate crisis, with plenty also in hand to fund them during the long and hard aftermath and recovery.
[2] Cash or other liquidable assets negotiable on sight.
Gordon
2021-03-17 06:51:09 UTC
Permalink
Post by Crash
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.
The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.
So who is going to be the PM that risks all this?
More to the point, which Government will be in power when the market forces
do a correction?

The point is that the voters expect their houses to keep on increasing in
value. Jolly good show. So democracy is about to kick itself in the arse,
hard.

The best we can hope for is 19.67% inflation while the house prices stay at
their existing levels.
George Black
2021-03-17 19:05:00 UTC
Permalink
Post by Crash
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.
The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.
So who is going to be the PM that risks all this?
All she has to do is produce that 100,000 houses she promised.
That should cut the price if they can find money to back all those mortgages
James Christophers
2021-03-17 21:04:57 UTC
Permalink
Post by George Black
Post by Crash
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.
The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.
So who is going to be the PM that risks all this?
All she has to do is produce that 100,000 houses she promised.
Like these shit-spec dungers?

https://www.stuff.co.nz/business/114268653/new-houses-have-cladding-and-joinery-that-lasts-just-15-years?rm=a

Or maybe something more up-market like this architect-designed dream home in Wellington:

https://www.stuff.co.nz/business/property/124569951/heartbreaking-awardwinning-wellington-house-demolished-after-developing-leaks

Meanwhile, this - and it hasn't been happening overnight, either:

https://www.stuff.co.nz/life-style/homed/real-estate/123885743/bad-news-for-buyers-housing-stock-at-record-lows
Crash
2021-03-17 22:27:15 UTC
Permalink
Post by George Black
Post by Crash
Post by JohnO
https://www.stuff.co.nz/business/124521587/what-happened-after-jacinda-ardern-said-house-prices-cant-keep-skyrocketing
Yes - wishful thinking from our political leaders continues - Ardern
joins the list of PMs of both major parties that has never had a plan
to bring down house prices.
The reason is that bringing house prices back to affordable levels
requires a reduction as substantial as the increases over the last 20
years or so, but the drop needs to be faster. For those who bought
their first home most recently (in particular) this means the value of
their house will drop the most and potentially it will fall below the
value of the mortgage balance owing. Couple that with increasing
interest rates, that risks financial instability with mortgagee sales
for those mortgagors who cannot cope with increased mortgage payments
on a home whose value has dropped.
So who is going to be the PM that risks all this?
All she has to do is produce that 100,000 houses she promised.
A promise never backed with a credible plan, and cancelled when no
credible plan could be produced. If I recall correctly that promise
surfaced with the 2014 election campaign and was repeated in the 2017
campaign.
Post by George Black
That should cut the price if they can find money to back all those mortgages
--
Crash McBash

Loading...