Comments on: Govt plans to pump up housing market http://www.landlords.co.nz/blog/govt-plans-to-pump-up-housing-market A blog for New Zealand landlords and property investors Sun, 29 Aug 2010 21:20:37 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Rod Philson http://www.landlords.co.nz/blog/govt-plans-to-pump-up-housing-market/comment-page-1#comment-832 Rod Philson Fri, 10 Jul 2009 04:47:43 +0000 http://landlords.akira.dyndns.biz:8080/blog/govt-plans-to-pump-up-housing-market#comment-832 There are two factors slowing the property market rebuilding and they are job security and general uncertainty. People are reluctant to borrow until they feel secure in their jobs. Any indicators showing positive factors in the job market and an upturn in the property market are welcome. The banks are loaded with pre approved loans for property purchases but borrowers need to take the loans up. First home buyers, and investors will not see a better time to buy than now. We have low interest rates. We have reduced prices - in some cases up to 20% in the last 18 months. We have tightened banking lending requirements which are showing signs of easing - some banks are back to 80 - 90% loan ratios. We have first home owner benefits. We have capacity to build new homes immediately at present. And we have positive immigration. as a result there will be a shortage of homes in NZ by the end of the year(2009) and prices will start to rise once the spring selling season begins in September. If the government is prepared to stimulate the housing market in any way it is for the benefit of the economy and we all know that the rub off will firm up job security in the building industry which is in need of some assistance right now. There are two factors slowing the property market rebuilding and they are job security and general uncertainty. People are reluctant to borrow until they feel secure in their jobs.

Any indicators showing positive factors in the job market and an upturn in the property market are welcome.

The banks are loaded with pre approved loans for property purchases but borrowers need to take the loans up.

First home buyers, and investors will not see a better time to buy than now.

We have low interest rates.
We have reduced prices – in some cases up to 20% in the last 18 months.
We have tightened banking lending requirements which are showing signs of easing – some banks are back to 80 – 90% loan ratios.
We have first home owner benefits.
We have capacity to build new homes immediately at present.
And we have positive immigration.

as a result there will be a shortage of homes in NZ by the end of the year(2009) and prices will start to rise once the spring selling season begins in September.

If the government is prepared to stimulate the housing market in any way it is for the benefit of the economy and we all know that the rub off will firm up job security in the building industry which is in need of some assistance right now.

]]> By: Hamish http://www.landlords.co.nz/blog/govt-plans-to-pump-up-housing-market/comment-page-1#comment-90 Hamish Tue, 11 Mar 2008 04:05:38 +0000 http://landlords.akira.dyndns.biz:8080/blog/govt-plans-to-pump-up-housing-market#comment-90 I think the shared equity scheme is not the most intelligent of ideas. So you introduce a whole bunch of new buyers to a market toping up their buying power by about the same as you end up in directly raising the price by due to the new buyers creating more demand. Helping developers to get their job done might be the best bet, introduce more supply and the price should decrease. I don't think the government should waste anymore money on coming up with new structures to keep people addicted to the government. If there is extra money for these schemes, great cut the taxes. This is probably the most efficient way of getting the money back where it is needed. I think the shared equity scheme is not the most intelligent of ideas. So you introduce a whole bunch of new buyers to a market toping up their buying power by about the same as you end up in directly raising the price by due to the new buyers creating more demand.

Helping developers to get their job done might be the best bet, introduce more supply and the price should decrease. I don’t think the government should waste anymore money on coming up with new structures to keep people addicted to the government. If there is extra money for these schemes, great cut the taxes. This is probably the most efficient way of getting the money back where it is needed.

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