General New Zealand Politics

If there was an election today, who would you vote for?

  • National

    Votes: 10 14.7%
  • Labour

    Votes: 25 36.8%
  • Greens

    Votes: 6 8.8%
  • NZ First

    Votes: 2 2.9%
  • Act

    Votes: 14 20.6%
  • New Conservative Party

    Votes: 0 0.0%
  • Other

    Votes: 2 2.9%
  • None of then

    Votes: 9 13.2%

  • Total voters
    68

bruce

Warriors 1st Grader
Contributor
Sep 1, 2015
20,878
From Berard Hickey:

Interest.co.nz reports on the mortgage rate moves in the last year, and how much the value of NZ’s housing market has grown relative to GDP. It’s now up to 4.8 times GDP. For comparison’s sake, the US housing market is worth 1.7 times US GDP and New Zealand’s stock market is worth 0.6 times our GDP. The US stock market is worth 2.2 times US GDP.
That means our housing market is twice as over-valued relative to our economy as the US stock market is to the US economy.
 

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
From Bloomberg, so it isn't just here...and it is serious:

The Global Housing Market Is Broken, and It’s Dividing Entire Countries
Direct impact of low interest rates.

Many of those countries have capital gains taxes… just an attempted Labour Party tax grab, with the Cullen report saying it would make a difference 🙄.

Interest rates rising will dampen prices this year and ultimately building more houses is the solution.
 

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
From Bloomberg, so it isn't just here...and it is serious:

The Global Housing Market Is Broken, and It’s Dividing Entire Countries
I found this part interesting as NZ is trying to force a similar approach from the planners and there is a similar backlash building here - urbanism is expensive with a lifestyle that suits only a small percentage of the population:

In several progressive cities and states, a raft of recent high-profile zoning reforms encourage densification, walkability and transit-oriented development in an effort to ease housing costs and improve sustainability — and far more dramatic changes will be required to reduce carbon emissions and avoid the worst effects of climate change. But so far, those factors are not nearly enough to offset the magnetic pull of cheap land.

“You’re oddly seeing an increasing embrace of urbanism at every level, in suburbs as well as central cities, but you’re also seeing the continued outward march of conventional sprawl development,” said Cole. “The very real conundrum is that even if people like urbanism, they can’t afford it. The housing crisis is real. That’s an Achilles’ heel of urbanism that smart growth advocates and urbanists are increasingly grappling with.”
 
  • Like
Reactions: bruce

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
From Bloomberg, so it isn't just here...and it is serious:

The Global Housing Market Is Broken, and It’s Dividing Entire Countries
The solution is obviously to look at the countries that haven’t had crazy price rises rather than focus on the countries that do… Germany, Portugal, Japan and South Korea. The difference is they have focused on ensuring supply of housing exceeded demand.

1641662475681.png


Germany:
Focus on community housing providers. Very low home ownership with the stock market considered the way to wealth.

Portugal:
Cheaply expanded into rural areas to ensure supply exceeded demand.

Japan:
Housing in Japan is cheap because of the country's almost deregulated housing policies. This has allowed the number of housing to grow, meaning there are a lot of houses.

South Korea:
Very low home ownership and rapid apartment complex development with 2m+ new dwellings every year.

The problem is we have structurally made supply unable to keep up with demand through planning (city urban limits), RMA hampering infill growth, excessively expensive build (and infrastructure) costs, council underfunding of growth infrastructure, rules requiring bigger and better quality of build (making cheap housing uneconomic), etc all while having significant immigration.

3 of the above countries have also focused on economic growth to support rent whereas our current government is anti-growth.
 

Miket12

Warriors 1st Grader
Apr 20, 2012
10,604

Home loans crisis: ‘I’ve had people in tears. I’ve had people shouting at me’​

It’s harder now to get mortgage finance than it has been at any point since the financial markets were deregulated in the 1980s, says economist Tony Alexander.

Mortgage brokers are reporting that clients who thought they had finance in the bag are being refused, sometimes after going unconditional on purchase.

Credit in general and mortgage finance in particular has become steadily harder to get, thanks to a variety of measures by the Reserve Bank of New Zealand (RBNZ) and the major retail banks.

The credit crunch is real, says Alexander. It started hitting borrowers towards the end of last year, with banks telling customers they had previously approved that the finance was no longer available.

“The key tipping point was when the banks started pulling the pre-approvals for low deposit lending in the first half of November,” says Alexander. Buyers who had previously qualified for a mortgage found the bank said “no” when they needed to roll the pre-approval over because settlement or finding a property had taken longer than expected.

The banks feared that with their existing lending behaviour they were going to breach new RBNZ rules that restricted the percentage of lending to low deposit borrowers – mainly first home buyers.

“That was the trigger, but then overlaying that is the CCCFA [Credit Contract and Consumer Finance Act]. Buyers have to meet all these new rules,” says Alexander.

“This is the biggest tightening of credit conditions since Robert Muldoon was Prime Minister (from 1975 to 1981).” Alexander says he doesn’t believe credit has been crunched as it is currently since the financial markets were deregulated in 1984-1985. “We’ve seen bits of tightening up since then, but nothing like this.”

Alexander says there is an element of panic on the part of the banks. “They don’t know exactly how the legislation will pan out and what sort of mistake is going to lead to a $100,000 fine for directors,” he says.

“My expectation is that the banks will get used to it. They’ll get a feel for what is required and their assessment of borrower's income and expenses will ease. But that could take six or nine months.”

Mortgage brokers are seeing the fallout as the credit crunch hit their clients. All of the advisers OneRoof spoke with had seen clients’ pre-approvals pulled by the banks.

“It’s bad,” says Jeff Royle, adviser at iLender. “The biggie is the CCCFA.” Taking effect from December 1, the revised act requires banks to do a more in-depth assessment of affordability and suitability of a loan applicant’s ability to repay.

Royale says the latest iteration of the CCCFA was designed to curtail loan sharks’ activity, not affect home buyers. “The CCCFA is a sledgehammer to crack a nut,” says Royle. “There was no justification whatsoever in the mortgage world for those regulations to be in place.

Debt-to-income ratios are adding pressure to the crunch for some customer. BNZ and ASB have recently set up debt-to-income ratios for some home buyers meaning they could only borrow a certain multiple of their income, rather than simply a loan they could afford.

The human toll of the credit crunch is harsh. “I’ve had people in tears,” says Royle. “I’ve had people shouting at me. I was threatened with being sued. It’s pretty bad.”

Royle cites the example of a couple on good incomes. Prior to December 1 the couple would have qualified for 90% lending with the bank to buy their new home in Gulf Harbour.

Had they been able to borrow with their bank they would have paid interest at around 4.5% on their entire mortgage once low equity premiums were added, says Royle. Instead, the couple had to apply to a non-bank lender for a mortgage and pay 5.75% on the first 80% of the purchase price and 15.95% over seven years on the remaining 10%. “It’s crap,” says Royle.

Another client who went unconditional on a new build in Auckland’s Hobsonville Point a year ago had to reapply for a mortgage after their build was delayed. Under the new application the client is $75,000 short on the money needed to settle on the property. “They’re extremely angry,” says Royle.

It’s not just homebuyers who are affected. Small developers find they can’t get the finance to build, says Royle. Non-bank lenders, their traditional source of funds, are short of finance to lend because it needs to be recycled from existing developments, which are running over thanks to materials and labour shortages.

Squirrel Mortgages owner John Bolton has launched a petition to change the CCCFA rules. “As a country we are drowning in cotton wool,” he says. “It is an unfathomable increase in bureaucracy and real cost with no benefit,” Bolton says.

Like many other mortgage advisers, Stuart Wills of Mortgage Managers, has seen first home buyers have their pre-approval pulled after their builds were delayed. In the past, banks would normally have extended the pre-approval, but not now. “Our issue is those approvals that would normally be extended are needing to be completely redone,” says Wills.

In addition, the new CCCFA regulations have seen lenders go over the top with their investigations into borrowers’ finances. “Some seem crazy,” Wills says. “(Banks) not believing the applications which clients complete and making their own assumptions based on analysing bank statements.

“I had a crazy one this week where we had noted day-care costs of $2,002 monthly. The lender came back saying we were wrong as the payments being made were $948 fortnightly: hence $2,054 monthly. When questioned I pointed out that day-care is not a 52-week expense, and furthermore by the time the lenders picked up the application the day care had stopped for the year and as one child had turned five it would recommence in January at a lower amount of $588 fortnightly.

“This application was for a couple with incomes of $146,000pa and $167,000pa plus bonuses. So, if we had of underestimated by $52 a month it was hardly going to put them under any financial pressure.”

Adviser Geoff Bawden, of Bawden Consulting had what he calls a “robust discussion” with a bank that came back and accused his client of not disclosing what they spent on takeaways.

Bawden says it’s only a matter of time before borrowers who have their pre-approved finance taken away complain to the Banking Ombudsman.


The CCCFA regulations which were needed to protect the most vulnerable from loan sharks has had the unintended consequence (but as predicted by Church and Alexander) of making it even had for first home buyers as banks are now forced to look even harder at spending habits. The worst credit crunch since the time of Muldoon.
 
  • Like
Reactions: Worried2Death

Miket12

Warriors 1st Grader
Apr 20, 2012
10,604

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
‘Teachers referred to perceived deficits in home backgrounds and attitudes of this group of students by stating that Māori and Pasifika students lacked motivation, goals, aspirations and parental support.’

Wow… exactly what I have said our experience has been 🤔. Why do they use the word ‘perceived’… when will the so called experts, do the studies to recognise it as fact? The fear of being labelled racist? - even though addressing it will have significant benefits?

Only then can they address the real causes, rather than denying they exist and focusing on irrelevant issues…
 

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga

Inruin

Warriors 1st Grader
Contributor
May 19, 2012
10,704
Auckland

Mr Dragon

1st Grade Fringe
Jul 25, 2015
1,659
‘Teachers referred to perceived deficits in home backgrounds and attitudes of this group of students by stating that Māori and Pasifika students lacked motivation, goals, aspirations and parental support.’

Wow… exactly what I have said our experience has been 🤔. Why do they use the word ‘perceived’… when will the so called experts, do the studies to recognise it as fact? The fear of being labelled racist? - even though addressing it will have significant benefits?

Only then can they address the real causes, rather than denying they exist and focusing on irrelevant issues…
If you want the best rugby players import Islanders like we did, If you want the best science and mathematics import Asians. People think it's racist but just look at the best rugby teams in NZ, not many Asians and the best mathematicians not many Islanders!
 
  • Like
Reactions: wizards rage

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
Not stifling free speech. It's bloody good in my opinion.
Did they send multi million dollar bills to the ihumatao protestors for the years they protested. Permanent security guards on site wasn’t there?

Destiny church is corrosive, but the right to protest is protected under the bill of rights. Is it only rich people that will be able to protest in the future? Doesn’t sound very democratic to me.
 
  • Like
Reactions: Mr Dragon

Inruin

Warriors 1st Grader
Contributor
May 19, 2012
10,704
Auckland
Did they send multi million dollar bills to the ihumatao protestors for the years they protested. Permanent security guards on site wasn’t there?

Destiny church is corrosive, but the right to protest is protected under the bill of rights. Is it only rich people that will be able to protest in the future? Doesn’t sound very democratic to me.
Just because they didn't send a bill to one doesn't mean they can't send it to another. Organisers of 'protests' need to be aware of consequences. This isn't stifling free speech. There are plenty of opportunities and places to protest.
 

wizards rage

Warriors 1st Grader
Apr 18, 2016
5,411
Tauranga
Just because they didn't send a bill to one doesn't mean they can't send it to another.
Yes it does. Our right to protest is protected under the bill of rights.

FFS… yesterday I am standing up for Djokovic who is a idiot. Today I’m standing up for the destiny church when I think they are corrosive. I don’t care who it is or the flak I get… rights are rights.

Can the government pick on someone popular who I can support!
 

Noitall

1st Grade Fringe
Aug 21, 2019
2,862
Yes it does. Our right to protest is protected under the bill of rights.

FFS… yesterday I am standing up for Djokovic who is a idiot. Today I’m standing up for the destiny church when I think they are corrosive. I don’t care who it is or the flak I get… rights are rights.

Can the government pick on someone popular who I can support!
NZ government had nothing to do with Djokovic bro. I think you mean can a government pick on someone popular who you can support. Don’t lose sight of issues because you don’t like this government.
 

snake77

Warriors 1st Grader
Jul 12, 2013
10,193
Auckland
Yes it does. Our right to protest is protected under the bill of rights.
As we saw with the big protests in Wellington last year if you protest outside parliament they provide you with loud speakers. 😆

Also as we learned last year it works better if you protest when the ministers are there and haven't finished for the year. Otherwise the loud speakers are pointless.
 
  • Like
Reactions: Inruin

john nick

1st Grade Fringe
Mar 28, 2020
3,538
tauranga
Yes it does. Our right to protest is protected under the bill of rights.

FFS… yesterday I am standing up for Djokovic who is a idiot. Today I’m standing up for the destiny church when I think they are corrosive. I don’t care who it is or the flak I get… rights are rights.

Can the government pick on someone popular who I can support!
Cheer very loudly for the Warriors again this season mate and all will be forgiven
 
  • Love
Reactions: wizards rage

Last Game

27 Aug

16 - 28
5.6 Total Avg Rating
0.0 Your Avg Rating

Highest Rated Player

Lowest Rated Player

Compiled from 5 ratings