Auckland Property Prices

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  1. Post
    NZ's proportion of interest-only loans is MUCH less than Australia though.

  2. Post
    SirGrim wrote:
    The banks there have restrictions of how many Dollars they can lend out as Interest Only loans, due to the caps there seems to be a massive reduction in overall bank lending which has caused the house market crash over there - it's the same thing here, the market is propped up and artificially price inflated by investors, do anything to stop those investors being able to buy (such as not giving them interest only loans) and the market would crash here too
    speculators lol, not investors

    People buying properties that to marginal or even negative cashflow and persevering through this for X amount of years because the property will just go up in value magically...

    More speculators than investors.

  3. Post
    while Aussie has more interest only loans

    New Zealand's narrow money (m1) is up 133% since 2010 and broad (m3) is up 100%

    Australia's m1 is up 50% and m3 up 75%

    so the capital risk for NZ is much greater,

    I mean if you had a friend who jumped on the scale in 2010 and weighed 50kg and then in 2018 was 116.5kg but he hadn't gained any weight.. those some damn heavy clothes.

  4. Post
    Dunno aye. Like interest only seems smarter historically than just paying down a mortgage.

  5. Post
    In an inflationary world sure, but really stupid when that turns, our Reserve Bank is pushing for higher capital ratios.

  6. Post
    When that turns you're ****ed no matter what.