Why property investors should keep an eye on transport developments

I finished last month’s housing blog by noting that if Auckland’s pace of house price rises was not sustainably slowing down then the Reserve Bank would probably take the 30% deposit requirement for investment purchases to 50% or 75%. This probably won’t be necessary because the pace of price inflation has slowed to 3.8% in the three months to October from 6.1% in the three months to July and 8% in the three months to August. Continue reading…

3 reasons Auckland’s housing market went into overdrive

Late last year we started to see a spike in activity in the Auckland housing market in terms of both turnover and prices. It looks like a key driving force behind this was a rush of new investors entering the market, probably encouraged by three key things. Continue reading…

World Dairy Prices 101 with Tony Alexander

We’ve heard about Greece and China. This time, in a Q+A session, we asked BNZ Chief Economist Tony Alexander to explain why international dairy prices are so low, whether farmers should be able to farm through them, and what it means for the New Zealand economy. Here are his answers. Continue reading…

Greek Debt Crisis 101 with Tony Alexander

In a special Q+A, BNZ Chief Economist Tony Alexander explains how Greece got itself into so much debt, how the issue is likely to be resolved, and whether there will be a flow-on effect to the New Zealand economy. Next week, China.

How did Greece get itself into this situation?
Greece borrowed too much money during the 2000s and ahead of the global financial crisis, and they didn’t invest it wisely. They grew the public service too much, introduced generous social welfare payments – especially for pensioners, and they regulated their economy to the point where it’s no longer competitive against other economies. Now, Greece has an economy that is unable to support its level of debt. Continue reading…