Posts by Katharine Moody
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Polity: House-buying patterns in Auckland, in reply to talkie_toaster,
no posts about capital flow from the tanking Chinese stockmarket, the price of Auckland houses, the difficulty young people face in owning a house
Talkie, my very first post on the original thread by Keith Ng was on the above (i.e., the REAL issue). I was stunned that the majority of posters ignored the economic issue/problem at the core of the matter and instead wanted to talk Labour politics instead - when political slight of hand by the governing National party is what prevents us from having this conversation with the REAL data in the first place.
It is the ultimate of irony.
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Speaker: Identification strategy: Now…, in reply to BenWilson,
Why is it any more cause for concern than, say, Brits coming down here and buying up property? Or white South Africans?
It isn’t. Whether the majority of the foreign funding is of mainland China origin isn’t any more of a concern to me – all QE/ZIRP sourced funding that invests disproportionately in residential housing thereby locking out NZers based on an income to average/market price ratio is of equal threat to NZ – as NZers (of all ethnicity!) borrow more locally (and at higher interest rates) to compete;
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Speaker: Identification strategy: Now…, in reply to Sacha,
When the Hong Kong government moved to implement disincentives for foreign buyers, they had identified their problem as predominantly increased demand from mainland China;
CLSA analyst Nicole Wong said the latest moves will discourage mainland Chinese property buyers in the city, "hence removing a very meaningful portion of demand." The brokerage firm estimates that such buyers accounted for about 37% of the total value of newly built apartments sold in Hong Kong in the second quarter.
http://www.wsj.com/articles/SB10001424052970203922804578080691384244814
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OnPoint: My last name sounds Chinese, in reply to Eddie Clark,
No, because this issue is not about a race of people - this issue is about country of origin (the origin of QE/ZIRP money, that is) - hence the analogy.
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OnPoint: My last name sounds Chinese, in reply to Soon Lee,
So I’m just collateral damage?
Every time George Bush Jr. opened his mouth I was collateral damage.
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OnPoint: My last name sounds Chinese, in reply to Russell Brown,
But this just isn’t good enough data to go out and say so with, especially when you’ve dragged residents into it.
Point is however that residents – of all ethnicity’s – are negatively affected in equal measure by offshore investors from economies running QE/ZIRP monetary policy.
There is a young guy of Chinese ethnicity on that new program ‘House Hunt’ – and he’s as locked out of Auckland as is every other NZer earning a NZ wage and trying to purchase a house with it.
Point is - even if the vast majority of these people buying are residents - they are still paying more, much, much more than they should be based on our average wages. And we (NZ) are adding vast sums to our mortgage borrowing.
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Polity: House-buying patterns in Auckland, in reply to Lilith __,
The government has started collecting the data, and now require a NZ IRD number for people buying property.
That doesn't tell us where we are at but rather where we might get to with respect to foreign ownership. Question is: are we happy with where we are at with Auckland market prices and private mortgage debt.
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Polity: House-buying patterns in Auckland, in reply to Lilith __,
We don’t yet have the data on how many non-resident speculators are buying property in NZ.
No we don't - but the real question is - can we carry on waiting?
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Polity: House-buying patterns in Auckland, in reply to Jim Cathcart,
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OnPoint: My last name sounds Chinese, in reply to Seriatim,
I’m more perturbed by all those who choose to see this as a ‘race’ issue, when other more mature options are definitely available.
Exactly. It's a QE/ZIRP issue. And we're a country where such QE/ZIRP policy action is not a sovereign option.
The RBNZ is concerned, rightfully so. And with the OBR instrument in place - it is NZers deposits that will take the hit. One has to wonder whether that IS the government's plan?