Sunday, Jul 16, 2006

Mortgagee sales on the increase in New Zealand

New Zealand Herald: Middle-New Zealand feels pinch

Skyrocketing household costs are squeezing even comparatively wealthy New Zealanders out of their homes.

Posted by Anthony Ashwin @ 12:13 AM (661 views)
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1. Retiredbanker said...

Ecouraged by very low interest rates, people living in countries with the "Anglo Saxon" economic system have
"passed on" increasing energy costs and low wage rises by the expedient of continually running-up debt.

Like Mr. Micawber they are hoping that "something will turn up", but with both wages and employment benefits
being squeezed by ever increasing competition by emerging Third World countries, this seems increasingly

I am astonished by how rapidly conditions of employment have deteriorated in the banking industry since I retired
just over 12 years ago, and my wife tells me that it is the same in the Civil Service.

Wages are much lower, promotion prospects sharply diminished, and most fringe benefits reduced or abolished.
This of course is to be expected with increasing "globalisation", but does not bode well for living standards in the
Western Countries.

Relatives living in Cornwall, East Anglia, East Midlands, etc., tell me that in these areas 12k is considered a
reasonable wage for ordinary working people.

No wonder people are living on borrowed money, but sooner or later something has to give.

Sunday, July 16, 2006 11:04AM Report Comment

2. sirgoogle said...

Problem with reports like this is that they concentrate on only one or two cases. Where are the independent statistics to show the scale of the problem? For a change to be triggered you would need thousands of people having to sell their home at once under duress. This simply will not occur yet. Not convinced of HPC in short term in NZ, UK or anywhere yet.

Sunday, July 16, 2006 01:35PM Report Comment

3. Bert said...

I left NZ a couple of months ago. I wasn't keen on buying as a first-timer given some of the prices. I don't think prices are going up in NZ anymore (even though some of the stats still suggest it) but they definitely aren't going down. There were still plenty of people living the good life in the expensive wine bars etc so I hadn't seen any signs of people getting squeezed.

Sunday, July 16, 2006 05:46PM Report Comment

4. Jake The Muss said...

NZ has suffered the same problem as the UK, we've both had a Labour Government since the late 90's. NZ Labour Governments have a reputation for spending spending and spending, which makes everyone feel great for a few years, until the money runs out, then the National Party(Tories) are elected and have to clean up the mess.

CPI inflation is at 4% (target is 1-3%), interest rates are 7.25%, yet everyone expects interest rates to hold and then drop......??? Balance of ayments deficit is 9% of GDP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! and the National debt is similar to Japans, ie way over 100% of GDP.

What a shambles of an economy!

Monday, July 17, 2006 01:35PM Report Comment

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