Changed interest rate track threatens US REITs; Japanese 10yr bond yields top 1%; Taiwan sentiment rises; China profits stay low; UST 10yr 4.46%; gold and oil up; NZ$1 = 61.5 USc; TWI-5 = 70.7

That might be the worst possible. 

I reckon we are much more susceptible to inflation than leading countries, we always have been, our rates have normally been 1 or 2% higher than elsewhere. 

The village operators have been screwing their customer base for years. It's time that came back to bite them.

It will be a short lived crisis,  central banks have a history of printing themselves out of any crisis, they have no other tools

Perhaps this budget might include a change to allow foreign buyers to purchase houses valued over $2M?

In which case this would likely help those people who are selling to fund their retirement.

Prices could tank. Personally I see a slow decline over the next 10 years unless significant interest rate decreases. Might even be a slight price increase with real price losses. 

Boomers just need to be mortgage free and have a few hundred thousand in the bank at current interest rates. When the super kicks in for me I will be making more money than I ever did actually working in this country because the average pay is total crap. Most people out there are still on $50-$60K and trying to survive.

After costs its not great compared to selling and investing, even just term deposits. Particularly if you make a capital loss. Sure if you don’t compare it to other investments it looks ok. 

For you lot with the 'Boomer' antipathy, I saw a report (on this site I think) some months back that suggested the majority of property assets were held by post Boomer generations. Time to get over your hang-up?

Overall private rental stock is worth around $425bn, debt on that stock is $90bn. So, what, nearly $14bn of rental cash flow (440,000 x 600 x 52) and interest on the debt a bit over $6.3bn / year?

But costs are going through the roof so net return pretty poor.

Plan A Nat/ACT/NZF Coalition doubles down & wins the support they would then deserve 

Plan B move to Oz. We know from the last 3 years what a future Labour/Green's/TPM coalition means - no matter what they say.

Unless we are back to mortgage rates that start with a 3 by then. Just like they were pre covid 2019. National will have wrested political control of the RBNZ by then.

Mate, how is it that you still haven't figured out that ALL those Labour, Greens and TPM MPs are landlords and property investors themselves?

China must be really jealous in that the US military suppliers are really busy right now and are probably ramping up production.

@NZ Gecko .....Absolutely, if the RB lowers interest rates, up goes inflation like a Tesla rocket on a hot, humid Texas morning ! ....then the kiwi peso will plummet down to USD 0.40cents or even lower ..... this is what ya get with a small, narrow minded, greedy, "property crazed" economy that's too afraid to take any risks....other than property ! 

The banksters love it !!! ....they have every renter piling in liquid cash, with their paltry wages....and because incomes are so crappy for so many, the stoopid gummint has to chime in with taxpayer money ! in the form of basically "landlord welfare" the accommodation supplement ... if a tenant can't afford to rent a property either A. landlord to reduce the rent or B. incomes need to increase .....and git ya hands outta the taxpayers pocket ! ya bludgers !! 

Rock and a hard place.

Want to make a bet on that ? The RBNZ will drop rates at the first sign of trouble. Hell they dropped rates pre Covid BEFORE we were even in trouble.

malamah

I hope that is not a sad attempt to provide "a number" of increased number of boomers forced to sell to back up NZGeko assertion. 

If so, a giant baseless leap of faith to assume that is due to boomers selling up . . . could, sadly, well be recent FHBs. 

Also do a little further research . . . current number of listings still some what below 2011 to 2015 levels. 

NZGeko

What financial risk do I face “at my financial peril” as you claim? Another baseless rant of yours.

I am eight years in to retirement, and after fifty years of sound financial decisions and investments now live very comfortably (and the “bank balance” is still a little higher each year).



You need to take stock of your wild baseless rants . . . if they reflect your financial nous it is you that is certainly at high risk of financial peril.

Hope you have got your Monday morning anti-boomer envy-based rant out of your system and the week starts improving for you.

Cheers 😀

You somehow forgot to mention record level immigration on the housing demand side, so I will. 111,000 net migration gain in the year to March. Tens of thousands of extra accommodation units required in the next few years.

"It was expected to be around a 5 to 5.5% gross yield, just over a year ago.  Not tenanted and was still in development then."

Gross yield is way too low in my opinion.

And it is still in development? The valuation might be a lot lower now with a larger share owned by the lenders on the commercial property.  Investors at the time of the offer may have experienced large losses percentagewise.  Assuming a 60% LVR, then equity investors are wiped out with a cap rate of 9.2%, assuming no new equity capital, and assuming the building is tenanted at the initial indicated rental level



Look at this example of a commercial building under development and the financial and mental impact on investors who lost money.



Claim over $41.3m Nido investor losses: Court action explained - NZ Herald



 

Investors who poured millions of dollars into the failed Nido homeware share ownership scheme have told of the misery they are suffering.

One investor with $1 million-plus invested has complained to the Financial Markets Authority, another who put in $1m fears he will have to shoot rabbits and dig vegetables to eat, while a third is suffering insomnia and nightmares after putting in $250,000.

A retired farmer, aged 79, said: "I can shoot rabbits and I grow my own vegetables. If I have to, I'll carry on working. I was getting around $5000 per month interest."

Another shareholder in her early 70s is one of 229 shareholders in Central Park Property Investment, which owns the failed Nido West Auckland homeware store and site.



The woman had a mortgage-free house and said she thought Nido was a good deal but said she had never visited the now-abandoned store, which shut two months ago.

"Covid came along and I worried my superannuation money in a managed fund would have a balance going down and down and down. So I grabbed it all out and I talked to a person at church who sent me a newsletter earlier last year from Maat.

"I hadn't heard of them at the time but felt that they had belief in faith like I do. I was drawn to the 8.5 per cent return. I was looking for somewhere to invest my money. I read a newsletter from May 2020 which said that the Nido store scheme in west Auckland was projecting 11 per cent although it came back to 8.5 per cent."

So she met up with executives behind the fund.

"I'm not investment savvy, although I've had rental properties in the past. Maat had 12 funds they were managing and had a good track record. I felt they could be trusted."

She then attended a presentation and although Nido founder Vinod Kumar was absent, she said she felt even more comfortable about the scheme.

"They knew what they were doing. So I invested in stages and in hindsight it was far, far too much. It should have just been a small amount but I was attracted to the return. It was so much more than putting my money in the bank," she said.