Property to Crash in 2022? Ep 217
As mentioned - find the revised Episode 215 here: https://player.captivate.fm/episode/2a4e11e2-6652-409b-be50-e57ccbef838c Check out a short video on this topic that I made in September 2021: https://youtu.be/AHzA-z8G4XA Sign this petition now! https://www.parliament.nz/en/pb/petitions/document/PET_118382/petition-of-john-bolton-urgently-rework-responsible-lending Learn more about Squirrel – you can start here: https://www.squirrel.co.nz/invest/investing-in-home-loans Of course, industry players like John Bolton, and myself, have a vested interest to see this legislation chucked in the bin. That’s a conflict that should be disclosed here from the outset and while I believe this is more about all Kiwi’s rather than just property owners, that would explain partially at least, why people like us are speaking out about it. In a world where the free market is significantly restrained however, there are more calls than ever to intervene with even more band aids, instead of ripping them off. Cameron Bagrie says: “We can talk about the CCCFA and its unintended consequences etc etc etc, but somebody has got to step in and think about the bigger picture here. An 11% rise in housing debt in 12 months is not normal, it is not sustainable. Income growth has been about 6%. Now that makes absolutely no economic sense to me.” https://tmmonline.nz/article/976519854/cccfa-bad-law-but-huge-growth-in-credit-is-the-bigger-picture So are the consequences unintended, or convenient – that’s what I’m wondering. Shifting more to the political sphere, here’s what Jacinda Ardern wants: We should be ‘…bringing [them] back to levels that we were at only a year or two ago…’ https://www.rnz.co.nz/news/political/457683/ardern-wants-runaway-increases-in-house-price-growth-to-stop-in-2022 Is it reasonable to assume that as well intentioned as our current government is, that they can actually engineer a soft landing and not over-shoot? Time will tell…