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MaybeTop8 said:
Who am I having anyone blindly follow?

Certainly not those who blindly attribute sentiment and text to me that's for sure.

And wow Mike, we're going back to Labour are we? And covid subsidies? Well, if those rich listers had a conscience they would never have taken the money in the first place. Or held themselves accountable.

I'm certainly no Labour apologist. Struck a nerve maybe? You're listing things this government has failed to do, great.

How do you actually know how the consolidated fund will be spent? You don't.

And now somehow we're onto first home buyers, of which I was one recently and got screwed by successive governments, mostly on the right, all neoliberal.

The thing is Mike, it's been like this forever and IT'S NOT WORKING. Well it is for the rich but hey.
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Lucky you, getting a first house. But a FHB using their KiwiSaver account will have their account balance decimated by a CGT when 33% of their returns disappear each year because of a CGT on the increase in value of the shares the fund has invested in…. because that’s the effect a CGT like what Robinson tried to bring in.

And you still haven’t given any indication on how a CGT would narrow the wealth gap in NZ when it hasn’t in most of the OECD countries you want us to follow. But I don’t expect you to have the answer…. I asked David Parker a couple of years ago how it would reduce the wealth gap in NZ when it wasn’t lowering the gap overseas after a business leaders breakfast I attended and he couldn’t answer it. If the “architect” of a CGT couldn’t answer the question, I’m sorry expecting you to be able to.

I do agree with you that the current government were foolish removing and reducing funding to some of the housing grants they have. Very shortsighted!!!!
 
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I read an article that blamed societies current issues on double incomes.

It has allowed house prices to double as increasing income stretched prices to the maximum income could allow. It’s meat all the increase income has gone to simply servicing huge house prices.

The result: if we still had single incomes house prices would be halved because that’s all the market could afford.

We would have 35 hours of disposable time not working to pay for the exact same house.

The double working has resulted in childcare costs, more petrol costs, more stress, less time with kids around their parents, etc.

The only winners have been the govt with a massive increase in tax.

Based on this, we would have been better as a society with only a single income earner per household.

Can’t critique it really and a fascinating example of how we’re working twice as hard and are no better off (essentially that second person is working for nothing).
 
wizard of Tauranga said:
I read an article that blamed societies current issues on double incomes.

It has allowed house prices to double as increasing income stretched prices to the maximum income could allow. It’s meat all the increase income has gone to simply servicing huge house prices.

The result: if we still had single incomes house prices would be halved because that’s all the market could afford.

We would have 35 hours of disposable time not working to pay for the exact same house.

The double working has resulted in childcare costs, more petrol costs, more stress, less time with kids around their parents, etc.

The only winners have been the govt with a massive increase in tax.

Based on this, we would have been better as a society with only a single income earner per household.

Can’t critique it really and a fascinating example of how we’re working twice as hard and are no better off (essentially that second person is working for nothing).
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Add to that the billions paid in Accommodation Supplement, effectively further inflating house values.
 
wizard of Tauranga said:
I read an article that blamed societies current issues on double incomes.

It has allowed house prices to double as increasing income stretched prices to the maximum income could allow. It’s meat all the increase income has gone to simply servicing huge house prices.

The result: if we still had single incomes house prices would be halved because that’s all the market could afford.

We would have 35 hours of disposable time not working to pay for the exact same house.

The double working has resulted in childcare costs, more petrol costs, more stress, less time with kids around their parents, etc.

The only winners have been the govt with a massive increase in tax.

Based on this, we would have been better as a society with only a single income earner per household.

Can’t critique it really and a fascinating example of how we’re working twice as hard and are no better off (essentially that second person is working for nothing).
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Subsidised childcare, no one's looking after there own kids as a result.
Burden of usual family education left to schools. Then there's all the complaints about sex Ed etc.
The list goes on.
 
Inruin said:
Inflation seems to be lifting slightly, do you think the Reserve bank have dropped too far and will lift again soon?
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I believe the inflation is externally driven from overseas - the economy is not overcapacity and driving up wages / prices due to lack of supply. This is not domestic inflation as we experienced with the huge govt stimulus several years ago.

I think the reserve bank MUST look through minor external inflation.
 
wizard of Tauranga said:
I believe the inflation is externally driven from overseas - the economy is not overcapacity and driving up wages / prices due to lack of supply. This is not domestic inflation as we experienced with the huge govt stimulus several years ago.

I think the reserve bank MUST look through minor external inflation.
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Exchange rates are certainly an issue currently for imports
 
wizard of Tauranga said:
I believe the inflation is externally driven from overseas - the economy is not overcapacity and driving up wages / prices due to lack of supply. This is not domestic inflation as we experienced with the huge govt stimulus several years ago.

I think the reserve bank MUST look through minor external inflation.
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So keep lowering interest rates aye, encourage everyone to take on loans larger than they should? Isn’t this one of your key criticisms of the previous regime?
 
Mr. Brownstone said:
So keep lowering interest rates aye, encourage everyone to take on loans larger than they should? Isn’t this one of your key criticisms of the previous regime?
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Purely antidotal (based on my business) but this drop in construction is very different from those I’ve experienced before.

When new residential building has slumped, those with the money have looked at doing alterations/additions due to lower pricing from contractors and suppliers but this time, it’s pretty much all stopped.

With the mortgage rates dropping, when the interest in new builds hasn’t started again, instead any enquiry is about alterations and additions as people want to use the lower rates to add capital into their existing properties.

I don’t really think that there will be a huge uptake in large loans for new builds until FOMO kicks in and the lack of supply means values start rising again. That, in my opinion, is at least 12 to 18 months away.

So no, in the short term, I don’t see there being the rapid recovery in property values for quite a while.
 
miket12 said:
Purely antidotal (based on my business) but this drop in construction is very different from those I’ve experienced before.

When new residential building has slumped, those with the money have looked at doing alterations/additions due to lower pricing from contractors and suppliers but this time, it’s pretty much all stopped.

With the mortgage rates dropping, when the interest in new builds hasn’t started again, instead any enquiry is about alterations and additions as people want to use the lower rates to add capital into their existing properties.

I don’t really think that there will be a huge uptake in large loans for new builds until FOMO kicks in and the lack of supply means values start rising again. That, in my opinion, is at least 12 to 18 months away.

So no, in the short term, I don’t see there being the rapid recovery in property values for quite a while.
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Yeah I don’t either, was just trying to stir Wiz up
 
Mr. Brownstone said:
So keep lowering interest rates aye, encourage everyone to take on loans larger than they should? Isn’t this one of your key criticisms of the previous regime?
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Interest rates should be at a neutral level where they are not strangling households but not overinflaring everything as well.

I think we’ve been in the strangling side of things where we were.
 
wizard of Tauranga said:
Interest rates should be at a neutral level where they are not strangling households but not overinflaring everything as well.

I think we’ve been in the strangling side of things where we were.
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I agree however that is only due to the amount of household debt that has built up over time because of low interest rates. Rates have now been reduced to a level where it could encourage dumb borrowing once again. I doubt they’ll remain at these levels (or lower) for long.
 
Mr. Brownstone said:
I agree however that is only due to the amount of household debt that has built up over time because of low interest rates. Rates have now been reduced to a level where it could encourage dumb borrowing once again. I doubt they’ll remain at these levels (or lower) for long.
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I suspect a lot of mortgage holders will start playing the interest guessing game and will start looking more favourably at longer fixed terms.
 
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