Links 14 March 2018

Global Macro / Markets / Investing:






  1. Rising Mortgage Rates Threaten Housing Affordability and Inventory – Zillow Research

    • The typical U.S. mortgage payment in 2017 required just 15.7 percent of the median household income. Historically, monthly mortgage payments required 21 percent of the median income.

    • Monthly mortgage costs have already surpassed the historic norm in seven large U.S. markets.

    • The typical U.S. rental payment requires 28.9 percent of the median income … read more via hyperlink above …
    London House Prices Drop at the Fastest Pace Since 2009 – Bloomberg

    Google News Search ‘London House Prices’ …


    Kiwibuild likely to add only 9,000 homes over four years | Kiwiblog

    Stuff reports:

    The Government’s KiwiBuild programme could add as few as 9200 extra properties to New Zealand’s housing stock over the next four years, an economist says…. read more via hyperlink above …
    Rodney Dickens says section prices are the key to solving the housing affordability problem, not higher density around transport hubs. He warns against force-feeding in areas that won’t deliver the intended outcome … Interest Co NZ

    By Rodney Dickens*

    Maybe reflecting vested interests and complacency, National’s housing policies did nothing to solve the affordability problem.

    In the case of Auckland this is evidenced by section prices having increased 72% since the first tranche of Special Housing Areas was approved in 2013.

    Labour is adopting a broader and more hands-on approach to addressing the housing affordability problem including proposing some policies that have the potential to address the most pressing problem: excessive section prices. … read more via hyperlink above …
    Demographia International Housing Affordability Survey … Media Release | Scoop News

    … concluding …

    … New Zealand global leader restoring housing affordability …

    The co-authors of this Survey, Wendell Cox and Hugh Pavletich, have short commentaries within the Introduction section.

    Within his commentary, Wendell Cox outlines that the principal reason for concern about housing affordability, is its impact on the cost of living and therefore the standard of living.

    New Zealander Hugh Pavletich briefly outlines the massive evolutionary political progress underway in his country, since the time of the release of the 2005 1st Annual Demographia International Housing Affordability Survey ( full schedule accessible via ).

    Housing has been a major issue these past 4 elections.

    A Labour-led government won the recent late 2017 election, with a comprehensive housing policy … that includes …

    ‘Remove barriers that are stopping Auckland growing up and out

    Labour will remove the Auckland urban growth boundary and free up density controls. This will give Auckland more options to grow, as well as stopping landbankers profiteering and holding up development. New developments, both in Auckland and the rest of New Zealand, will be funded through innovative infrastructure bonds.’

    Labour has a proud tradition as the ‘Party of Reform’ in New Zealand.


      Home lending restrictions now ‘part of the furniture’, outgoing RBNZ head says |

      Months after taking steps to ease lending rules, a top Reserve Bank official has warned loan to value ratios (LVRs) and other proposed restrictions could become part of the “furniture”.

      Grant Spencer, who after spending most of his career in the Reserve Bank retires at the end of this month, delivered a speech on Tuesday which also called for the bank to be able to add a debt to income (DTI) or other debt servicing instrument to its toolkit. … read more via hyperlink above …

  3. Do any of you guys ever wonder how come we got cleaned up at Anzac Cove, or the Somme, or Malta, Crete, Tobruk. Darwin, Kokoda, Well the brains trust that showpony as the leaders of this nation now have the situation of a TC Linda just off the coast and 2 weeks plus a few days to the great xtravaganza???
    AI has to be smarter than those we currently have as leaders??

    • bolstroodMEMBER

      Tobruk and Kakoda were not wipe outs.
      Kaoda was a brilliant fighting retreat , against superior numbers that ended the Japanese ambition to take Morseby.
      Only that dickhead Blamey thought it was a defeat.
      Tobruk was still in allied hands when the diggers were relieved , after an heroic defence.
      The BoM still has this TC doing a u turn just off the coast. I agree with you that this may not happen.

      • That the Strayan fighting man is the best in the world, I fully agree
        That the bags of crap which pose as political and military leaders, who sent those guys to fight is the issue.
        So now we have a political decision to hold the biggest xtravaganza, world stage performance in the middle of cyclone season, is my point. Had it have been deferred by 8 weeks, all would be good
        There is a reasonable chance this joint could look like darwin 74, if it gets out of hand.
        Extraordinary failure of planning, less they thought the weather would accept a few white envelopes????

    • Crows Nest has gone full retard. St Leonards train station and buses from Pacific highway already means commuters can get into the city in very quick time. Yet as soon as the Metro station announced apartment prices have skyrocketed as though it is going to save an hour’s worth of travel time.

      • The Traveling Wilbur

        You are forgetting the obvious advantages of being​ colocated with a train station:
        – new friends; an enclave of well-meaning homeless people will soon develop for you to hang with.
        – more up to date interior decoration; the constant vibration caused by the trains running will mean more frequent updating of your interior styling re painting and decorating. And plastering. Lots of that.
        – getting to know your local Bobby; as the crime rate goes up in your neighbourhood and you make more frequent contact with Mr popo as a result.
        – better access to prescription medication; not necessarily prescribed to the eventual end-user, but definitely to someone, once.
        – a greater appreciation of greener environments; like the one you used to have.