A review of things you need to know before you sign off on Tuesday; post-election business sentiment drops, Asteron Life downgraded, eyes on dairy prices, OCR and inflation, swaps up, NZD firms, & more

Come on folks, let’s see more green ticks to support the great work we come here for

Solana is eating its lunch..fees, traffic, performance - (sorry for the majority here who have no idea what we are talking about). Lets get back to house prices, milk prices, and how the country is now back on the right track.

Ethereum is clawing its way back up after its hard fork in March. It fell to NZD$5273 shortly before, but is back up to $6180, but not anywhere close to the $6700 it was at shortly before the fork.

Happy days. My lowest price paid for ETH was back in March 2020 - a 26x (highest price paid was approx USD3,500 in Nov 21). Should have been stacking solidly throughout 2019 been easy to say in hindsight. Stacked from 2020 up to the crash and was expecting it to go as low as USD600. Honestly speaking, I didn't really understand well back in 19-20 when it was still proof of work. 

NZD is fun and all, but best to keep references to ETH and BTC prices in USD denominated terms. 

You guys are still pricing things against the NZD? The Eth/BTC is a very precarious situation.

You need to price it against the thing you are trying to accumulate more of, and in the long term that should be Bitcoin. No one is holding NZD under their mattress for the next 20 years.

Glad tidings, perhaps some comfort contra the above survey evidencing business confidence once again sagging. If NZ is to revert to its traditional claim of the agricultural sector coming to the fore in time of need then the negative financial results such as Synlait, Silver Fern Farms and Alliance are worrying. No other word for it. In the past a devaluing NZ$ was a frequent tool. Not now though. Some hard slog ahead without doubt.

I understand that Westgold butter is in every Walmart store in the US. It's promoted and labeled as Grass Fed Butter has to be a winner. Yili spent 40m on a new butter plant too.

The consensus of reckons from an inner circle backed up by pointy heads with fancy pants doctorates. 

Jfoe, imported deflation from 2005 to 2020 masked excess demand. You can't have it both ways.

Massive US deficit spending is obliterating the effect of QT. 

its really funny that you think people going massively long gold and bitcoin are a positive sign, I see them as an insurance bet like CDS going up.....

It looks like it last sold in 2012 for $340k, so I guess, yes it's about 7.2% growth pa over the last 12 years. (should be $780 k today to be exact)

7-10 years I believe. Anyway, you have proof of Ashley Church's prophecy, even though sales price approx 20% lower that ratable value in 2021.

The Lord works in mysterious ways. 

Beautiful home, incredible location, mint conditon with manicured lawns... should of gone for more.

Yes west Auckland does have a large amount of untapped 1950s/1960s homes that are sound structurally, on decent plots of land that many could allow for subdivision or cross lease and did have rapid rises in price, over 50% was in four years for us for one property. A median wage job could not match that. That property shows it is in the mixed housing urban zone, 300sqm minimum. Which can mean $$ for that land area.

However some things to watch for West Auckland had a fire to consents and property details so for some properties records are patchy. There may have been roof replacement in the past with an asbestos tile product popular in West Auckland. Our full asbestos removal and replacement with a decent roof costs were 25k in one property but the benefits were greater; nowadays that work of roof replacement will cost much more. You might find it far more useful to remove the houses entirely and have sub development done sooner. Even at the old price of around 400k these houses were often in need of a lot of renovation (e.g. full rewiring, insulation to bring it up to standard etc) and were not worth even half the price. Many are around poorly maintained waterways & streams that the council intentionally lets flood, and they may need work to bring them up to rental standard (insulation, ventilation, repairs where lack of exterior maintenance leave things like windows etc to rot).

So while they were a good choice 10 years ago (the land value to cost was good and flooding risks were lower with more council maintenance) it is a bit more of a quandary now given renovation cost increases, scale of essential repairs needed, new build costs, lack of council maintenance and the new lower quartile median price in the market around those suburbs. The area was always a bit semi industrial, good for renting not as good if you yourself were living there. But then NZs population is booming so I would say it is probably worth it...

Except that house is already a too far gone health hazard that needs removal stat. The maintenance required was deferred far too long, there is many leaks (from forgone maintenance) and lack of ventilation in key areas, substantial black mould growth making it unrentable. I suspect it was a property that was owned by either absentee owners or ones that were just too ignorant or unable to do (or book) any basic maintenance themselves. Even a single mother with 2 jobs and their kids could do their own flooring, painting, window repair, cleaning and maintenance (with the electrical work, roofing and plumbing being limited by legal reqs). I have an almost odd desire to go test how rotten the window frames are because there are parts I am sure I can get a finger through.   

Yikes that this property sold for above 800k is pretty shameful in NZ. As in it makes my West Auckland investments look like gold mines of mansion quality if there were not other considerations that made me transfer to even more profitable areas.