Links 19 July 2019

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Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Latest posts by Unconventional Economist (see all)

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  1. Franking credit handout reform:

    Mr Hill, whose seat of Bruce is in outer suburban Melbourne, said voters had approached him at shopping centres with suggestions for how to improve the policy, such as applying a cap, grandfathering the scheme or basing it on a person’s total wealth.

    https://www.smh.com.au/politics/federal/the-nation-will-have-to-do-something-labor-mps-pressure-albanese-over-franking-credits-20190717-p5281l.html

    Precisely. Exclude the rich immediately and grandfather the non-rich.

    Do the same with negative gearing – exclude the rich immediately and grandfather the non-rich.

  2. Kiwibank economists say despite the residential construction boom the country is still falling short of what it needs to build; further short term weakness seen in Auckland house prices, however … David Hargreaves … Interest Co NZ

    https://www.interest.co.nz/property/100767/kiwibank-economists-says-despite-residential-construction-boom-country-still-falling

    Kiwibank economists say the shortage of houses in New Zealand may reach as much as 150,000 by this time next year despite the residential house building boom going on.

    Despite the shortage, however, they see further short term weakness (prices down another 3-5% into next year) in Auckland house prices, with the regions continuing to show short-term strength before slowing too.

    In a Property Insights publication Kiwibank chief economist Jarrod Kerr and senior economist Jeremy Couchman said their estimates showed that at this time last year there was a shortage of 100,000 homes across New Zealand.

    As of right now, they now estimate the shortage has grown to 130,000. … read more via hyperlink above …
    .
    .
    … We are awaiting the New Zealand governments major housing and urban land use announcements. Note Urban Development Minister Phil Twyfords late March speech …

    New Zealaned (then Housing) now Urban Development Minister Phil Twyfords speech to the New Zealand Initiative Members Retreat … New Zealand Government / Beehive

    https://www.beehive.govt.nz/speech/speech-nz-initiative-members%E2%80%99-retreat

    … extract …

    … In our view there are three big challenges that have to be addressed:

    1. A broken system for financing infrastructure

    2. A planning system based on urban containment

    3. The failure of governments until now, both local and central, to actively work with the private sector to enable urban growth and expansion. … read more via hyperlink above …
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    .
    THE ‘NEW ZEALAND DREAM’ IS STILL ALIVE … WENDELL COX … NEW GEOGRAPHY

    http://www.newgeography.com/content/006327-the-new-zealand-dream-still-alive

    … exract …

    … The Westpac NZ Housing Preferences Survey …

    … Among the respondents, nearly one-half (49 percent) considered a back yard “essential,” while another 42 percent rated the back yard as “nice to have.” Only nine percent considered a back yard to be “not important.” Among first home buyers, there was an even greater larger 55 percent considered a back yard as “essential.”

    A house with a yard is even more important that one close to work. Only 18 percent of respondents considered proximity to work to be “essential,” well below the 49 percent wanting a backyard. While nine percent of respondents considered a backyard to be “not important,” nearly four times as many said that proximity to work was “not important” (33 percent).

    House location also scored much lower in proximity to schools or child care, which was considered “essential” by 22 percent of respondents and parks/recreational facilities, “essential” to 21 percent. Only 11 percent considered living in social hubs (with “eateries and bars”) to be “essential. … read more via hyperlink above …

    • the Webster company that is the main nut producer is run by Chris “the Rottweiler” Corrigan of the Melbourne dock wars

      • Mining BoganMEMBER

        If there’s something crooked going on in Oz you can bet that Corrigan’s name will pop up somewhere.

    • I think the Calif central valley Almond, Alfalfa, Avocado, and Citrus fruits makes a nice back drop to your link.