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From http://www.bnz.co.nz/binaries/w171105.pdf

Reserve Bank Problem Escalates

We’re at the end of RB Panic Week 5 now and what have we learned? One thing is that the Minister of Finance has felt obliged to step in and offer the services of Treasury to help the Reserve Bank develop new ways of influencing inflation. Why? Probably because the desire of the RB to reduce inflation that they have let get out of control is melding with the Government’s desire to do something about low income and first home buyers being priced out of the housing market. One doubts that a centre-left government feels this is a positive development and this therefore creates a potentially dangerous outlook for property investors. Why? Because it looks like it has been the investor surge into housing which has caused this less than egalitarian outcome – not the fall in the unemployment rate to 3.4% and accelerating wages growth. The fact that emigration flows are running 14% ahead of a year ago in spite of the strong labour market could be because some Kiwis are going elsewhere to either pursue their home ownership dream, or if that is not an option open to them any longer to go somewhere that offers better disposable incomes where tax rates are being cut rather than new ones introduced. After all, if houses are being priced at levels that reflect overseas incomes you may as well earn an overseas income yourself. In this regard the news item on TV during the week regarding a real estate agency selling $100m worth of Kiwi houses to people leafing through brochures in the UK is likely to have been a red rag to the government bull.

The bit bold is particularly pertinent to me as I've been in the UK for a few years now earning the ££ in order to buy a place back in New Zealand. Have now done that but waiting for house prices to fall or the exchange rate to become a bit more favourable.

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From http://www.bnz.co.nz/binaries/w171105.pdf

The bit bold is particularly pertinent to me as I've been in the UK for a few years now earning the ££ in order to buy a place back in New Zealand. Have now done that but waiting for house prices to fall or the exchange rate to become a bit more favourable.

Hi IWS

I own a property in NZ and the below comment is pertinent to me if true.

"In this regard the news item on TV during the week regarding a real estate agency selling $100m worth of Kiwi houses to people leafing through brochures in the UK is likely to have been a red rag to the government bull."

Totally agree where you are coming from. I would prefer having homes reflecting local wages and agree the market is insane. When you have people moving into an area (the Wairarapa where I live) because "Pete Jackson lives there"; you have a problem.

I feel it will rectify itself but will be gruesome.

Edited by Lord Lucan

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Hi IWS

I own a property in NZ and the below comment is pertinent to me if true.

"In this regard the news item on TV during the week regarding a real estate agency selling $100m worth of Kiwi houses to people leafing through brochures in the UK is likely to have been a red rag to the government bull."

Totally agree where you are coming from. I would prefer having homes reflecting local wages and agree the market is insane. When you have people moving into an area (the Wairarapa where I live) because "Pete Jackson lives there"; you have a problem.

I feel it will rectify itself but will be gruesome.

Agree - It seems any reason is good enough to justify NZ's housing bubble, I'm waiting for the Rugby World Cup 2011 to become the new justification. I had to laugh the other day when I read an article in the NZ Herald about a couple rapt to have taken advantage of the new Bank Direct 100% home loan which enabled them to purchase a terraced house in Albany. They were adamant they were onto a good thing despite the mortgage payments being THREE TIMES what they were paying in rent. If thats not a classic example of bubble mentality then I dont know what is.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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