Daily review 16/06/2021

Written By: - Date published: 5:30 pm, June 16th, 2021 - 12 comments
Categories: Daily review - Tags:

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12 comments on “Daily review 16/06/2021 ”

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  1. Pat 1
    16 June 2021 at 6:26 pm

    "Willis pledged that a National Government would reverse both of the new tax rules and instead work with investors to improve supply and build new housing.

    “We want to create more paths to independent housing for all New Zealanders and we need to remove the constraints and build more houses for a sustained period of time to do that.”

    https://www.stuff.co.nz/life-style/homed/real-estate/125448050/opposition-parties-tell-property-investor-forum-wed-reverse-the-rules

    "Both Alexander and Goodall said reinstated loan-to-value ratios, the new tax rules and the current construction boom would lead to a cooler market and slowing price growth over the next year, but prices were unlikely to crash."

    And now they'll have to reverse DTI's as well.

    • Nic the NZer 1.1
      16 June 2021 at 6:45 pm

      I understand banks already have lending policies for DTI, so its a question of if the RBNZ wants to implement stronger ones on top of those using this tool.

    • mac1 1.2
      16 June 2021 at 7:05 pm

      Nicola Willis said the changes were 'morally' wrong. Nothing that was reported dealt with that.

      Was there something not reported, some argument not covered by the report? What, even did she mean by morality?

      Or, was it more dodgy logic and unsupported assertions?

      Also, and possibly more important, a media report can report that claim without putting forward further examples, proof, argument but just allows the assertion of what is for me a serious allegation.

    • David 1.3
      16 June 2021 at 8:36 pm

      Jacinda said the March changes would tilt the market in favour of first time buyers. The complete opposite has happened. Supply dried up. Demand unchecked. Prices rising at the fastest rates since records begun.

      Seems a fair bet the DTI changes will be the complete opposite of the governments stated intentions.

      • Pat 1.3.1
        16 June 2021 at 9:10 pm

        March changes havnt had time to have an effect as has been noted in various analysis…there was a generous lead in period that has enabled investors to take time to consider their options….it is however generally agreed that between the reintroduced LVRs and the deductibility changes the market has slowed considerably….time will tell whether there will be any further impact.

        As for the DTI tool, its impact will depend largely on its use….indications are the RBNZ will not rush to implement and even when it does it will be at a cautious rate.

        And both the Gov and the RBNZ will be hoping the impact isnt greater than theyve calculated.

        • David 1.3.1.1
          16 June 2021 at 9:18 pm

          10 year CGT rules kicked in immediately. The impact of restricting supply was equally fast. Record low number of properties for sale. What happens when supply is low and demand high?

      • RedBaronCV 1.3.2
        16 June 2021 at 9:28 pm

        I had this over in open mike.

        Who on earth is advising Labour for FFS. Shouldn't they mean "only home or something similar" for the peeps who wind up moving from Napier to Auckland sell and buy again and pay an increased price? If you can't afford a mortgage then you are unlikely to be able to afford the rent either.

        • Pat 1.3.2.1
          16 June 2021 at 9:38 pm

          Thats true to an extent, but in order to purchase you require a deposit (now) and that needs to be saved while paying rent (in most cases) and that is taking longer and longer for even those that can manage it….thats the difference that ever lower interest rates dosnt solve.

          Those rents are required to support existing borrowing, hence AS….the foundation of the whole ponzi is the ability to pay the rent.

          Its a question of when, not if the whole structure collapses.

  2. RedBaronCV 2
    16 June 2021 at 9:22 pm

    A restaurant owner who has stolen from his staff and now lives back in India. Hardly the sort of person needed here so why does he not have his citizenship or residency stripped for not being "a fit or proper person". 2 years ban from employing is just a wet bus ticket. and i'm sure any business could be transfered to another party

    https://www.stuff.co.nz/business/better-business/125458434/restaurant-owner-banned-and-fined-after-badly-treating-and-underpaying-staff

  3. Rosemary McDonald 3
    16 June 2021 at 10:24 pm

    Oh, Covid! Most discerning of microbes! Clearly chooses not to infect World Leaders!

    Oh, Lucky Leaders! Just don't pop back here for a catch up on your way home…

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