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House in an Auckland Suburb

Reserve Bank solution misses the point

Remedy for New Zealand’s housing bubble needs to focus on curbing investors’ enthusiasm for property. The Reserve Bank has announced it will lift the ratio of deposits to loans in order to take the heat out of the housing market. There are a number of grounds for intervening in the housing market and the appropriate […]

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Graeme Wheeler LVR

Better late than never – Reserve Bank edges ever closer to acknowledging mistake on mortgage policy

The consideration given by the Reserve Bank to controlling the bias in its policies that favour housing over all other lending types is most welcome (See NZ Herald article here). It is 20 years late but until they deal to this, New Zealand’s economic growth will suffer, capital will be misallocated and incomes and job […]

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Blind Man’s Bluff

Gareth Morgan, Director of Gareth Morgan Investments Like a herd of stuck swine, second hand house dealers have squealed with indignation at the Infometrics analysis of last week that pointed to the likelihood householders would be diluting their exposure to housing over the next twenty years. The case for that finding is pretty sound and […]

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No Clemency

Gareth Morgan, Director of Gareth Morgan Investments Robin Clements’ defence of his affordability index is inadequate. My dictionary describes affordability as “the position of being able to do something without adverse consequences”. On this measure of basic English comprehension the index title is devious. If one bought a house on the back of the Clement’s […]

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