An association, an insurer and FSCL have spoken out after the industry regulator released a new report on life insurance earlier this week.
The Far North has become the new hot spot for buyers as interest in the super city falls, new statistics show.
"I don't care if they offer me $50 million," says an 82 year old homeowner. "Money isn't everything."
Rates for 30-year U.S. mortgages dropped to the lowest level in more than three years after Brexit vote
A new report from the Financial Markets Authority has highlighted the risks associated with replacement business within the life insurance industry.
In a submission to the Review of the Financial Advisers Act, an industry body says the term RFA is “damaging for New Zealand's reputation as a responsible member of the world financial community”
1. It is kind of you to want to share your house with another family......but most wont, and will happily keep their spare rooms.
2. Go where for more opportunity jobs? Ireland?
3. I'd disagree, did a majority of middle class "likely house buyer" baby boomers wait till they were 30-40 to have kids? Or was it more common for them to have them at 20 - 30? Yet they still could afford a house - why - because generally 1 person stayed home to look after the kids so families calculated what they could afford to buy a house for off 1 income. Late Gen X and early Gen Y saw the world differently, "didn't want to do what their parents did and be young parents", so held off on having kids, looked after number 1 for a while and enjoyed life, coupled up and had 2 incomes to calculate debt servicing over. Hence it was such a strong period of price rises between 2000 and 2007. Now its a necessity to have 2 incomes, that choice is gone.
4. Lets assume you are correct and the city is awash with thousands of empty houses owned by wealthy Chinese speculators (there probably is). Will they now sell up desperately at a loss, or just sit on them? Meanwhile our population grows and people need houses to live in.....(the people not sharing your house with you I mean!)
5. Yes they are fortunate also in terms of balanced climate to a degree, but many cities aren't, I wouldn't underestimate the effect that climate will play on migration in the coming years.
6. Pollution is an issue everywhere and populations are continuing to grow in most countries which will only add to it....not unique to NZ....it will be a case of what city is the least polluted, not whether there is pollution.
7. 1% of the top 10% might though.
Reality is that house prices will only likely take a real hit when interest rates start going up because in reality until then if you own a house that you live in or rent, and can afford it now, what reason do you have to sell it?
1. Quoting another comment form interest.co.nz: "We actually have heaps of houses, even in Orcs, it's just hype to justify the speculation. We could increase population by 50% without building a single house, and still be within a bulls roar of the OECD average. In New Zealand, the average home contains 2.4 rooms per person, more than the OECD average of 1.8 rooms per person and one of the highest rates in the OECD.
2. Higher unemployment in NZ and rising, slows immigration and more leave. 50% of immigrants are "students" - renters.
3. Always been that way, couples always struggle to balance work/life.
4. Auckland is a hedge city - where offshore money resides. But that has changed a little with requirement to register with IRD.Open homes are silent and famous "Chinese buyers" have disappeared.
5. It rains even more in Ireland.
6. Very true. But won't last with current level of pollution. Kiwis are welcoming and tolerant.
7. 1% of Chinese are not going to move to Auckland. And they are too smart to buy in a falling market.
Here's the truth. 50 % of Auckland buyers are investors / speculators. They have all but disappeared from the market in the last two months. Brace yourself!
Here are my thoughts on rates.
(I have been an Adviser in Mortgage and Insurance for approx 18 years).
They will move up or down when the market conditions are such that they have to move.
Currently we have downside movement due to slower economic performance in NZ, as the Reserve Bank uses the OCR as a tool to either reduce or increase cash flow in the economy, which in turn has a direct impact on the inflation level.
If business in NZ has a down turn next year, or does not perform as expected, we may see the rate drop further.
However if it remains as it is now, with moderate growth predicted, we may not see any changes at all, until growth either goes up or down enough to warrant making an adjustment.
My feeling is we will have stable rates for the next 3 years at least.
Merry Christmas Everyone.
He is saying something contrary on his own website:
Which one do we believe?
This week's RESIMAC Home Loans BDM has worked in financial services in the UK.
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