Today we talk about Fonterra’s forecast milk price for farmers this year. Watch this video to understand why dairy farmers are bracing themselves, but Auckland housing investors are ready to cash in.
The Productivity Commission has produced a draft report that looks at ways to increase the supply of land for housing. The report includes many good ideas, such as getting rid of minimum parking requirements, which we will talk about in future blogs. One of the Productivity Commission’s ideas is to charge rates on public land […]
For those not cashed up, buying a house may not be a good move and you may be better off renting. It’s a different story for those who are cashed up. This video explains why it makes sense for the rich to keep buying houses.
We’re almost starting to feel sorry for the Reserve Bank. They are caught between a rock and a hard place, with inflation tamed but house prices out of control. They have tried out some tools – the loan to value ratio – and are talking about tightening this further for investors. But that will never […]
The Reserve Bank, faced with soaring Auckland house prices and low inflation, is getting creative. They are looking at making it harder for investors to borrow the money needed to buy rental properties. So at least the RB accepts the problem is a demand one, unlike Bill English who remains deluded thinking that all we […]
The UK media have been reporting on the global elite buying up secluded New Zealand ‘bolt-holes with airstrips’. The story goes that these properties are being snapped up in case of a ‘global uprising’ where the poor rise up against the super rich. While this is in some ways a compliment about New Zealand’s perceived […]
Some, including the Green Party, have questioned the wisdom of the Government’s proposed sale of state houses. In this blog we will look at the detail on how this proposal has worked overseas, and could work here. The question them becomes why the left, and the Green Party in particular, are so ideologically allergic to […]
John Key’s state of the nation speech promised to sell off state houses (1,000-2,000 this year, 8,000 by 2017) and boost the number of social housing subsidies. This has prompted the usual bleats from the political left, but we needn’t be worried. The voluntary sector has a good record of running social housing overseas, and […]
We have long written that the problem in NZ’s housing market, which more and more people are finally acknowledging, is a crisis, is a crisis of demand not of supply. Central to the causation of inflated demand are two factors. Firstly a terrible flaw in our taxation regime, wherein housing is one of the best […]
Don’t get me wrong, I think far more radical changes are needed to get the housing market on a sustainable footing than Labour’s new policy on restricting foreign buyers. As long as we leave housing out of the tax system it’s going to be a cancer to the rest of the economy. But that important […]