By Bernard Hickey
The Real Estate Institute of New Zealand (REINZ) has reported property sales fell to a 10 year record low of 4,411 in July from 4,575 in June and 6,014 in July a year ago.
REINZ intially released a statement saying the July sales were a 10 year low, but confirmed to interest.co.nz later on Friday that this was the lowest sales month for a July since REINZ started collecting records electronically in 1992. Figures before that are not comparable.
The July sales were even below the July 2008 low of 4,489. They were the second lowest non January month since the absolute pit of the housing recession in August of 2008 when 4,220 properties sold.
The median sales price in July fell to NZ$349,000 from NZ$352,500 in June, but is up from NZ$340,000 in July last year.
(Updated with ASB economist Jane Turner noting days to sell and inventory on market consistent with 10% fall in house prices, REINZ correction, links to REINZ data tables and full region by region reports.)
REINZ highlighted a rise in prices in Auckland, Wellington and Christchurch from a year ago. Nationwide prices fell in July 2010 as measured by the REINZ Monthly Housing Price Index.
The index based on the stratified methodology derived by the Reserve Bank of New Zealand fell 1.2% to 3191.5 in July from June. In the three months to July, the index shows housing prices decreased by 1.1%. Compared to 12 months earlier, the REINZ Housing Price Index increased by 1.8 percent. Here's more detail in the stratified measure and regional reports.
The REINZ-RBNZ stratified index of house prices, widely viewed as the most accurate and up to date measure of prices, is now down 3% from November 2009 and down 5.6% from the November 2007 record high. See our interactive chart series for the stratified measure of house prices.
That means real house prices have fallen 11% since November 20079, given CPI inflation over that period of 6.1%.
REINZ said remained higher than they were in July 2009 in the bigger cities, with Christchurch prices up 7.4%, Auckland up 1.7%, Wellington up 1.1% and other North Island suburbs up 2.2%. Prices in South Island cities other than Christchurch were down 2.7%. See the full report with data tables showing regional prices, volumes, days to sell here.
"We are seeing a similar pattern to last month with sales volumes down, but prices remaining stable in contradiction of predictions of a falling market," REINZ spokesperson Peter Thompson said.
"Good sales are still being made and properties priced right are attracting a lot of attention and are selling," Thompson said. The national median number of days to sell was steady in July from June at 45 for July, but is up from 37 days in July 2009 and down from 58 days in July 2008.
"Winter is traditionally a slow period for the property market, and agents are aware of many home owners preparing their properties for marketing in the Spring so an uplift in sales volumes can be expected," he said.
The breakdown of the values of the properties sold is 134 for NZ$1 million plus, 462 for NZ$600,000 - NZ$999,999, 1,084 for NZ$400,000 - NZ$599,999 and 2,731 under NZ$400,000.
Changes in the median price varied from district to district across the country with falls as high as 5% in five regions, and increases of up to 11% in the other seven when compared with the same month last year.
The largest rise in the median price is in Southland which is up more than 10.5% on the previous year and the largest fall in Central Otago Lakes was 4.9%.
Further falls in 'buyers market'
ASB Economist Jane Turner said the figures confirmed the housing market had been subdued during July with sales steady on a seasonally adjusted basis for the month at very low levels.
"House prices held up surprisingly well over the first half of 2010, given the weakness in demand during this time," Turner said.
"Given the weakened fundamentals for housing demand, including slowing population growth, rising interest rates and change in tax policy, we expect house prices will come under pressure over the second half of the year, falling around 3% over the next year," she said.
Turner said the median days to sell of 45 was above the historic average of 38 and pointed to further weakness in house prices over the next year.
"It is increasingly clear the market has shifted in favour of buyers. In addition, recent house listings data point to an increase in the total stock of houses available for sale (on a nationwide basis), which are now back at mid-2008 levels during which time house prices declined by almost 10%," she said, adding that weak net migration could trigger further weakness in the housing market.
Volumes sold - REINZ
Select chart tabs
104 Comments
As they knew perfectly well (although they were hoping no-one would notice.....)
I suggest a new headline: 'Worst July house sales volume on record'.
I suspect August will also be the worst volumewise on record as well and so on...........
Interestingly it looks as though the inventory of unsold houses is close to bottoming out for this time of year:
http://www.interest.co.nz/charts/real-estate/houses-sale
Inventory levels are much much higher than this time last year.
This means agents have high levels of unsold houses already on their books, even before the avalanche of new listings that arrive in the Spring.
Aaah excess supply.........I wonder what that could mean?
The Government has been doing its engineering bit for the last couple of years. It will continue to do so ( your 'gentle decline' hopes). But at some stage people are going to realise that 'this is for real', and will panic. Just as no one wnated to be the bunny not in property ( and the panic to 'buy anything!' on the way up!), the reverse will ocurr at some stage, and probably soon.
When you look at history....its a likely nightmare and not a dream.
So far we have the bears looking at the info and data and basing their opinions on that, and the bulls who sem to be all hype and no substance...its a Q of who's credible.
Just look at whats going on in the US. When the US suffers so will NZ with a time delay...the US is in a bad way....you just have to look at that and wonder on the risk here. Certianly the impcat looks bad, the Q is how lkely and balance that against your return....
Of course National will cope it, I can here the PIs who voted for them now "its what they have done, they have sent me bankrupt"
Yeah right.....
and they will run to ACT.
regards
Happy Renter, thanks for your comments.
Just one remark: it is not Wiemar Republic, but Weimar Republic, the name of a German City where the General Assembly established the new Republic after the end of first World War in 1919, different from the previous aristocratic government.
Happy renter ... I understand what u are saying .. but I still disagree with your senario.
In my view the "Markets" are open eyed and watchful about "money Printing" by Central Banks... (Modern communications have allowed for really efficient information flow.) Just look at the attention that was given too the Fed announcement of QE lite.
Again ..I see non evidence of "money printing"..??? In USA Money supply is actually contracting.
Modern Central bankers aren't as stupid as u would make them out to be.. ( Yes.. I know the Greenspan era was a mess ).... I understand that the Fed sponsors research papers on psychology, behavioral finance..etc... They know all about the behavioural expectations that may lead to hyperinflation.
Central bankers are fully aware , and mindful of "high powered" money .... and how to sterilize the impact of high powered money.
As far as deflation goes... it can be benign. 2-3% deflation in asset prices per year is not the end of the world...
There is global overcapacity... and the consumer are getting their balance sheets in order...as are banks ( if they can ) and Corporates... all of this is deflationary.
On the other side is Govt deficit spending... providing life support...and preventing the world form falling into the abyss of another 1930s' depression.
It is 3 yrs since 2007.... many people have been waiting for the depression...
USA is running $trillion dollar deficits... How long can it do this...??? (you may be surprised how long they can do this.)
I think u underestimate how adaptable and resilient people are..
The difference between your thinking and my thinking, is that u believe that this IS the end game.
I think we might get another cycle that would be in an inflationary environment...( whereas the last cycle was in a deflationary environment, which allowed for the massive growth in the Monetary aggregates over the last 20 yrs)... and at the end of that cycle the "reset button" would be pushed and there would be a complete overhaul of the Global Monetary system.... and even then I don't see the kind of hyperinflation u describe.!
Anyway we shall see.
One thing I'd point out is that inflation is not necessarily a good thing for property. ( timing is everything )
I believe there is a transition phase where markets would readjust to increasing interest rates, in an inflationary climate. .. (The mid to late 1970s' is a good example.)
Check out this Warren Buffett article.. full of wisdom
http://www.tilsonfunds.com/BuffettStockMarket.pdf
Cheers Roelof
ps.. The NZ Central Bank IS NOT privately owned.... I think most aren't
Happy renter and Roelof. Great comments. We'd love you to register. See the box in the right hand column. And anyone else. September 12 we turn off unregistered commenters. http://www.interest.co.nz/opinion/heres-why-wed-you-register-be-comment…
cheers
Bernard
Any business or associated interested party will try and put a positive spin on data that affects them. I don't believe this is disingenuous - merely looking at the cup half full. The data is still painting a picture that is fairly obvious - but not guaranteed as a predictor of the future. I'm not sure why some people feel that everything that the REINZ releases is akin to the satanic verses?
They sure are, Milkman! And none of that is a plus for property. Worldwide property/asset owners are selling up; putting the cash in the bank and hunkering down. The lower the rates go in an environment like this, the worse the economy is. Buying pretty much anything here and now is a risk not worth taking.
Falling house prices would be/are good for most kiwis even if some of them can't see it. Obviously falling house prices are good for first time buyers who haven't been able to afford to buy a house in recent years. And surely them being able to afford a home is good for the economy as it would entice young people to set up shop here in NZ rather than flying the coop the australia and further a field.
Its good for baby boomers because for most of them their grandchildren seem to be the light of their lives so anything that keeps their kids here helps them. Also as they retire they want as many tax paying young people in the country as possible to help cover increasing costs of an aging population. They may have to take a bath on their rental property but on bablance I still think lower house prices are good for baby boomers too.
Falling house prices are also good for the majority of house owner/occupiers. Most people upgrade their house a couple of times in their lifetime. If house prices remain lower in the long term than the difference in price for these upgrades is less so it is not such a finacial burden for families to upgrade their living situation. Long term lower house prices are definitley better for owner/occupiers.
For those who bought at the height of the market and over extended themselves they might be casualties of a drop in house prices. Also those who bought speculatively and are highly leveraged won't have much fun in a falling market. but then they were prepared to take the risk with the possiblity of high returns, higher risk, higher returns, bigger losses. They took the risk, for some they have managed to make alot of money and some are losing it.
So IMHO falling house prices are good for the vast majority of kiwis and for the country as a whole but people are so tied up about the value of their home that they will resist strongly selling their home at a loss so I think any falls from here will continue to be a slow grind downward.
I think you lot ought to read this: http://www.marketoracle.co.uk/Article21676.html
Interesting comments re the au$ though.
As for the property economy here....it's entering a slow decline that will drag on for a decade or more.
Real incomes are dropping. People are shoving what spare cash they have in a pillow. Window shopping is in, as is 'doing the sales'. Home veg gardens are bursting up everywhere. 'Make do' is the new normal.
"... we are headed for something far worse. I define a depression as a 10% peak-to-trough contraction in the economy.... while we're not formally in depression, we're certainly seeing it in a number of indicators and I think we'll be in a depression, with GDP down 10%, in the near future.... contraction greater than 25% peak-to-trough puts you in a great depression. That is what I envision, but we'll be taken there by hyperinflation ..."
Probably agree with all that Wolly, 'cept that last bit about hyperinflation. That's because there is no capacity to borrow whatever is printed to do a hyper spend up; but more importantly ~ When we did the Wiemar bit in the '20's, we hadn't run the Manahattan Project. All we could do was blow up cities, then. This time we can't afford hyperinflation, because it won't matter to whatever is left on the scoarched earth.
Baked Beans and bottles of Rum Nic.....fill that spare room mate. Must ask Bolly to increase the size of the banknotes and go back to paper, so we can use them in the dunny when they turn funny.
Could be a good little marketing tool there for the dunny paper makers....make each tissue a Bank of England Five Pound Note circa 1900. The Bank of England promises you will enjoy this tissue and advises against recycling.
FYI I have updated with the full REINZ report here with regional volumes, median prices, days to sell etc...
cheers
Bernard
Same situation for me as well, although I'm still in London, eyeing up whether or not to come back.
NZ house prices are way over valued, especially when you consider how bad they are. Complete rubbish.
I'll just wait to land gets cheaper, and build a house, thankfully my partners dad is a builder, so we can build something right.
And here's our interactive chart series on the REINZ/RBNZ stratified house price series. It takes into account the 'skew' from only rich houses selling.
http://www.interest.co.nz/charts/real-estate/house-price-index-reinz-rbnz
It shows the stratified house price down 3% from November 2009 and down 5.6% from the November 2007 record high.
That means real house prices have fallen 11% since November 2009, given CPI inflation over that period of 6.1%.
cheers
Bernard
Andyh,
Yep. Surprised me a bit only 6.1%. But got it from the RBNZ calculator here.
http://rbnz.govt.nz/statistics/0135595.html
And yes should be November 2007. Not November 2009. My apols. Have corrected.
cheers
Bernard
Jimbo Jones - you sound just like the nice Post Office Savings Bank man who used to come around school.
My shilling a week would see me rich rich rich at the end of my life. Even at 8 years old, that didn't seen too useful to me, timing -wise.
But he - and you - fail to see relativity with the real world. Do you really think there will be 700,000 worth of real consumables to buy, at that point?
Somewhere the capital gains had to be underwritten in goods purchasable, and at the point where they couldn't, they are called in permanently.
Whether through lower tenant incomes or via another path is irrelevant.
You're a fine one to accuse others of lying!
For months you've trolled here, making outlandish claims about the yields of your "rentals". (And going by the stupidity of your posts, it's highly debatable whether you've ever even owned any property.)
When someone recently stated that they were earning a high interest rate on a substantial term deposit you accused them of lying too, and demanded that they post official documentation as proof of their statement, all the while making imbecilic claims about your own "investment" (which are almost certainly imaginary) and then insulting any who ask that you prove those claims.
Bernard, this new account registration feature is very welcomed! But can I suggest you prevent non registered users from posting? Many or most other sites disallow posts by non registered users.
The Man's back,
You're not registered as The Man's Back. If you were your name would be linkable.
We'd love everyone with a name or pseudonym to register before September 12, when we will be stopping unregistered commenting.
http://www.interest.co.nz/opinion/heres-why-wed-you-register-be-comment…
cheers
Bernard
hello...DavidL... did you stop by to say hello..? nice, There's a barney going on here at the mo with Mr Man and his detractors....... he used to be... The Man... but someone else wanted to be a man.... and so er... I think they lost all their money or something.... and he then said "don't worry I've got your back" and so became ..The Man's Back.... or something like that anyways......hey we have got an anonymous $quillionare blogging here...... uh how bout that then....?
Well we took the plunge finally and bought our next family home after renting for a couple of years. The great thing about the market now from my perspective (while still overpriced IMO) is that houses can be had for a good price if you bargain hard, which enabled us to upgrade from our last home but also buy mortgage free. A couple of years back we would have paid a great deal more for the same place so we're pretty happy with the deal.
As for future prices going up or down, it didn't factor into the equation as if we do decide to move on again we will be buying/selling on the same market.
Good one, Matt S! And you'll have a few more dollars in your pocket, one way or another, for having done a couple of years renting. Nothing wrong with a family home.
But as for the speculators....well this just in by email from a R/E firm. Spring will save eveybody!:
"Although the latest reports on the real estate market are very demoralising and sales numbers did slip back a little, we are very positive about our market at the moment and the signs it is showing. We are looking forward to what Spring will bring and the opportunity to introduce more great property to the market during our Spring Marketing campaign."
@ the man is back.
Do the figures on the apartments at 1 Marine Parade, Paraparaumu Beach. 100m from the beach with views to die for.
Five units in this part of it, they sold new in 2005 for between 6-700k.
They have CV’s of around 625k.
Four out of five have sold this year , three were sold by the bank I believe.
They went for 480, 401,410 and 383k. The one purchased for 480 has been back on the market.
What do you think they are worth now? What would the bak lend you for them?
Come on, spin this one PI.
By the way, these are good quality, down the road another appartment block, same story!!
Something stirring vaguely in my memory - a bit after that time, maybe late 2006-ish, an apartment development in that area was advertising a car giveaway with every unit sold. Needed extra buyer bait even then, and possibly a way to drop the price without it showing in the stats. Anyone else remember that? I noticed, because in the USA bubble giveaways with purchase were one of the features of the stalemate before the crash.
I knew I didn't imagine it. Followed the USA crash just out of interest, mostly through www.thehousingbubbleblog.com, which collated news stories and stats from all over the world, but concentrated on Arizona/California/Nevada/Florida/NYC. Giveaways were one of the first signs that hysteria was no longer enough and the peak had been reached, so I took that as my sign to take all my profits from riding on the coattails of the bubble and go conservative. Finding that NZ is following what happened in the USA very closely, but with a couple of years lag, even with all the differences in foreclosure law and prevalence of subprime.
Yeah, I remember Jeff. There were a bunch like him, who in 2006 would swank around boasting about all their rentals and what bitter losers their tenants were, then their bragging would take on an increasingly desperate whistling in the dark quality, then they'd go quiet and disappear, and would be assumed to be living in their cars.
There was another chap who became a poster boy for the collapse - don't remember his name, but he borrowed to the absolute hilt to buy about 20-odd houses that promptly plummeted in value, then set up a whiny website begging people to donate and bail him out.
That's the bloke I was thinking of. Couldn't remember his surname.
Just checked back in with the housingbubbleblog for the first time in ages - there's the same 'Chinese Buyers To The Rescue!' rhetoric in the USA and Canadian press, apparently. Now that the 'rich retiring baby boomers' rescue fantasy is no longer viable, a new one was needed.
"Just checked back in with the housingbubbleblog for the first time in ages - there's the same 'Chinese Buyers To The Rescue!' rhetoric in the USA and Canadian press, apparently. Now that the 'rich retiring baby boomers' rescue fantasy is no longer viable, a new one was needed."
So are they also praying for Israel to nuke Iran, and/or a gigantic natural disaster to occur somewhere, which will drive interest rates up/down, and cause millions of immensely wealthy house-hungry refugees to flock into the USA?
Because that's the latest salvation scheme of NZ PIs...
There's hope for PIs yet!
Once they've been wiped-out by their property debt, they can try and play the media.
Some of them may get book contracts or become co-hosts on morning TV with highly skilled and internationally respected mega stars such as Paul Henry.
But almost all of them will just go broke.
God, imagine it. weeks of petulant, entitled sad-sacks sitting on colourful breakfast TV sofas whining about how hard-done-by they are, unfairly blindsided by a cruel fate that nobody could have foreseen, while an 0900 number for collecting donations scrolls across the bottom of the screen.
Or if you have a lot of money available you could invest it with a commercial trading bank for a whole lot more than 5% -- as much as around 7% last I checked -- and not lose it all in the rapidly failing property market.
Banks pay good interest rates when you have significant deposits. But don't take my word for that, just pick up the 'phone and call them. Be prepared to do a bit of negotiating to get the maximum rate: you won't be sorry if you do.
Oh and don't listen to the clueless who wish you to believe that you'll only get 5%...laughable of course, since bank websites already advertise 6% plus for even relatively modest deposits.
It would suck to be one of the many pathetic suckers who are mired to the eyeballs in mortgage debt, especially as the property market can only get a lot worse for a long time.
Is this really Olly Newland?
I can't believe that one of NZ's most experienced property speculators wouldn't know that the REINZ stats are taken from unconditional agreements, not settled sales.
QV stats are settled sales and do therefore lag the REINZ stats by some weeks.
here's a couple of poster comments from The Landlords Assoc. site's press release on the lowest July sales since 1992.
Comments from our readers On 13 August 2010 at 12:50 pm baz said:
Those of us wise enough to buy based on yield and considering capital gain a bonus are quite happy to ride out this flat spot in the market, which could continue for quite some time yet. Those fools who bought negatively geared properties - you made your bed, now lie in it. On 13 August 2010 at 4:37 pm Kim said:
True words, although a bit harsh. Negatively geared property is a tool. Like any tool it can be used in the wrong place or with the wrong timing. An argument could also be made that intelligent (or lucky) use of negative gearing is also where the most substantial profits can be made. Everyone to their own risk profile - some people even buy lotto tickets. interesting to peer into the world of the man and ex agent?
IF you are clear on what you are doing, yes I dont see why not....the problem is too many ppl do it in the wrong situation and at the wrong time...
The real Pro's in PI out there I suspect are doing well reasonably safely, the gamblers and the get rich twits stand to lose big time.
Ive seen all this in London too many times...93 was the last time....I left and came here....
regards
There is no doubt now that Noddyland is falling into a deflationary hole with property leading the dive. Equity losses are compounding the investment losses. Retail trade has ground down to reach a platform of activity which will see the weakest go to the wall. That is a normal recession story. It also means falling revenue for govt. English is waking up to the fact that he must cut expenditure or drive the economy into the hands of the IMF. As he cuts...and he bloody well will....the wgtn property market is set to receive a size 14 boot up the bum!
Immigration will not save the bubble of trouble. The slide in prices for property will keep going and going. Only when people can afford the property, will the slide have reached the bottom. That might be 40% below the current bloated level.
Wolly, you mistakist public debt for private debt. me thinks...Govn debt is actually quite low, whats going to drive this (for now) is private and company debt....first off....it will i think take Govn income down with it and casue mayhem...Thats.longer term like 5+ years from now then its going to be a worry because its almsot impossible to cut core services....so tax will rise and that is going to be led via a Labour govn taxing the personally "rich" heavily (National wont do it so will be voted out IMHO)....I cant see any other alternative...
Whats going to drive the guts out of our and the World's economy is the cost of switching to alternative fuels, thats 15% of GDP for a decade+...that has to be paid for....
regards
Aww cumon ."'you know what happens to nice guys" hee hee hee!
He's ok in my book he's done a hard days work, His mate on the other hand I have yet to decide. Is he an oportunistic Genius? or did he just get lucky ,he's hard to read..But his statement quote, 'Most smokers want the price of tobacco raised" leaves me bemused. As he's just pissed off 20% of the kiwis that like a puff.Winston Peters will be doing his sums about now.I wouldn't be surprised,if the "comeback kid" ,Drops a bye line like. "Can we afford to lose half the Chinese tourists who smoke"? it'll be your pension mate."..Or "It's just struck me the rise in Obesity,is the same as the decline in smoking" "....Or... "When Maurice Shadbolt was told he had Altzhimers the Doctor told him to start smoking"...But I'm biased.
But...but...houses are "special"!
You remember how years ago in NZ it used to be that "You are your car"? Well now it's "You are your house(s)".
Without houses we are nothing. Nothing! Just an abject pack of losers!
Houses are the ultimate symbol of success! Houses scream to the world "I am somebody...with shitloads of debt!"
No, we must never let ourselves fall into the fatal trap of believing that houses are anything but the perfect investment, and that one can ever lose with them.
Sniff...I love you houses...I love you SO MUCH!
Can't believe all the media coverage on property. Its very boring and stupid discussing the ups and downs of property prices, anti-property pundits wanting the bubble to burst, whilst the property pundits put on another rose tinted glasses. I wonder why theres no debate or media coverage about share prices going up and down? Oh look, Telecom shares drop 4.1% this month. Would that make good debate?
Its just a frigging house people, if you can't afford it buy something else. I can't afford to buy a Ferrari, but i don't go and complain to my government to legislate so i can afford one.
Nor do i complain about people that invest in classic Ferraris pushing prices up making even more unaffordable for the average car buyer like me. And I am pretty sure every new models of Ferrari cost more than the previous models due to inflation.
Maybe I just need to get real and consider Ferrari is just a car. Its just a vehicle to transport from one place to another.
checking into the property blogs on interest.co.nz is like going to the movies on a wet day..sorta thing you do when you haven't got anything much better to do.
always the same old dancing around the subject and munching on it as if there was some finite answer to be found?
read my lips..the property boom is over..we're going back to the kiwi dream of living in a house you can afford and raising your kids...the truth of being a human is returning instead of conspicuous consumption and greedy bullshit driving the agenda?!
think i might now do a "wally" and bold up this post!
"Weak US Dollar = strong NZD and AUD. If the New Zealand dollar gets stronger, it makes our property less affordable for foreigners. Goodbye foreign buyers. "
Other currencies will go up also relative to the US not just NZ Aus$. Eventually the Chinese will have to properly revalue the Yuan as the importing of inflation due to the USD peg will be too much. The new found purchasing power of the middle class will be good for NZ and Oz.
The dynamic of the risk off trade being a rush to the USD will change eventally when people realise how activly this administration via their utterly astounding policies seems to be trying to destroy it.
I watch Schiffs blogs all the time and he quite reqularly comments on how he is bullish on Asia and mentions NZ in the same breath.
Of all the posters on this site, you (and a few others) actually use good candid arguments with links to back up what you are saying.
I really appreciate that.
From where I sit, I can see the fear gripping normal people. I remember the 1987 crash and the 6 years after. My gut is telling me to cut and run...but to where??? because I sure as hell can't fight what is coming.
http://www.marketoracle.co.uk/Article21897.html Try this for some Sunday reading Kirsty....then head for cash and split the capital au/nz.
Yes anon we seem to be only able to laugh when in fact we should be booting Bill English and the DonKey in the bum....the ongoing borrow and hope...borrow and hope some more....the govt strategy is to spew forth the BS knowing the public are too bloody thick to understand there can be no so called recovery to reach a platform of activity that depended on cheap easy to get credit....Donkey and Doubledip lack the guts to tell the public the recovery aim is utter crap and the public need to accept the current state of the ponzi scheme is as good as it can get.
The link above clearly identifies the madness in every population...the urge to believe the BS...those who can understand the message are currently deciding on the best ways to protect what they have....they are certainly not throwing caution to the wind and running after bloody property.
I 've read it twice now Wally (as is your rightful name) and nah mate I don't think so......... I think you will find in the coming 12 the toilet paper as you call it will be king again for a time. There are a number of vested interests who find themselves in the rock and hardplace status inc Japan............
Thinking outside the box imagine the machine had set all in motion to .............steal the wealth of a generation (or two)............. in order to find a ground zero and start again.
What would be the controllable variables..? what would some of the outcomes have been...?
worth giving thought to...............would require absolute IMF involvement.
"Another leg down"...maybe it will be more than a leg HR...I sold out of pna expecting a leg down but I cannot point to when...maybe post the US mid term electoral farce.
On a lighter note I see the thieving is ongoing in the UK....".In towns and cities across the country, the cost of parking is soaring, with some local authorities doubling – and in one case trebling – their rates" Telegraph
Here in Noddy our very own council idiots are into stealing from drivers too...the bus lane fine theft is one they plan on expanding. Expect fines for wearing the 'wrong' clothing and for riding a bike in a bus lane!!!...all in the name of stealing enough loot to carry on with the splurging behaviour and to prevent the loss of one of their own....
"Actually, I would recommend selling any real property, getting your cash, and converting it immediately into precious metals while you still can get some at a reasonable price. " I haven't got time to read all of the comments on this thread or the links but I assume your "recommendation" is aimed at people who are in financial poo? I fail to see how I'll be better off by selling our family home for example (although I suppose I wouldn't mind a few pieces of gold jewellery). I am assuming people in a reasonably stable situation have no reason to run anywhere, especially since things probably won't be better elsewhere anyway. Speaking for myself, I think we'll stay put (and get a few cows & sheep this spring just in case!!).
Same re-no debt situation. Which is why I don't really want to trade my house for silver or gold. We can't really live in a bar of gold, can we! Planted 20 fruit trees this week-end, vegge garden coming soon and we've got the chooks. Plenty of space for a few other farm animals too.
This article is a good overview of why gold / silver et al are going to be in hight demand.
If you cut and run, Kristy, you live to fight again another day! Cash will give you the option to move instantly , if and when you spot the next opportunity. From today's Sunday Star : Greg Ninness: "...with 17,256 sections listed for sale on Reaestate,co.nz last week and another 14,100 on TradeMe ( there could be an overlap, of course!), it would take 7 years to sell the section listed on those two sites....there could be many reasons for the for the current slump in residential building acivity, but shortage of land is not one of them".
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)
One of the largest burdens on very small employers is dealing with taxes. Fortunately, the IRS has taken a major step to reduce this burden.
Quarterly Federal Tax Returns Not!
There are millions of small businesses that labor under the burden of filing federal tax returns each quarter of the calendar year. These quarterly returns have been a major gripe of business owners who often feel they see their CPAs more than their families. The IRS is finally listening. Well, sort of.
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