tdgeek:

 

mattwnz:

 

Here is the link to the Oneroof podcast from this weekend, where one of NZs top proeprty experts said that he doesn't think NZ has a shortage of houses, and NZ has been building enough over recent years. It is just supply on the market that is the problem, and people holding off. Why sell when your house could be earning more money each month they you are working full time?  Warning this is an MP3 download of about 35MB  https://api.spreaker.com/download/episode/44698495/wc 08_05_21_ashley_church.mp3  

 

 

Is the house earning? If I sold to get these earnings I either rent at high rates or buy another house at the same price levels. Stuck in the same market. Why would people hold off? Job insecurity has risen with Covid. Employers have a good reason to say no pay increase this year. Safer to leave that upgrade for another time

 

It more applies if downgrading or moving to cheaper area. Or if someone has more than one house, which is common, as the government said, people buy a house to live in, and have a second house as their form of retirement savings. The lack of houses on the market causing the lack of supply seems to be matched with the number of renters who are not moving at the moment. So it could be investors with these rentals who are holding onto properties as they make these massive capital gains and there is no reason for them to sell, when there isn't much else to put their money into. On paper they are making all this money, possibly more than they make working full time, and as long as they don't need the money, it just grows until they cash out.  Many of them will only know about house investment, and not other forms of investments, and may have been bitten in 87 and 08. Feels very frothy.