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Yeah genuine demand can certainly drive crazy real estate growth. The appeal of moving to a large city compared to the suburbs is certainly obvious to me, and millions of others. It's then easily compounded with major space constraints(NYC) or restrictive zoning(sfbay, maybe also NYC?). I would speculate that something similar is true in Australia.
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Sep 22, 2015 02:07
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Cicero posted:I don't think the number of major cities has anything to do with it. The US has plenty of major cities but that hasn't stopped bay area housing prices from reaching ridiculous highs. To a certain extent high housing prices are inevitable in a very densely populated area, but you can make the problem a lot worse through restrictive zoning policies, which is why the bay area has sky high home costs. Rent control in a wealthy major city creates a housing shortage and blows property values through the roof, news at 11
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Sep 22, 2015 02:31
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CelestialScribe posted:The problem is it isn't a bubble here. Prices are going to remain high because we have few major cities. It's more of a cultural thing where New Zealanders and Australians will just hold onto the property rather than sell. It would take a major collapse destroying a bank to force enough people to sell. Something we haven't seen here (yet).
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Sep 22, 2015 03:05
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Devian666 posted:It's more of a cultural thing where New Zealanders and Australians will just hold onto the property rather than sell. It would take a major collapse destroying a bank to force enough people to sell. Something we haven't seen here (yet). Is that really true, like for instance are sales of existing homes substantially lower in Australia and New Zealand than in other comparable economies?
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Sep 22, 2015 04:23
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Devian666 posted:It's more of a cultural thing where New Zealanders and Australians will just hold onto the property rather than sell. It would take a major collapse destroying a bank to force enough people to sell. Something we haven't seen here (yet). Dunno about that, (haven't seen the numbers), but I think if you're going to live in Melbourne or Sydney on a single income you simply have to accept that housing just isn't going to be an option for you. (Translation: me).
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Sep 22, 2015 04:47
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BEHOLD: MY CAPE posted:Is that really true, like for instance are sales of existing homes substantially lower in Australia and New Zealand than in other comparable economies? If market prices drop people just refuse to sell and will wait out low prices. Unless they are forced to sell due to financial issues. People in NZ will hold onto property no matter what, even if the money would be better invested elsewhere. Most will want to realise their tax free capital gains. Sales are normal unless there is a recession or dramatic financial/economic event. NZ isn't in a recession so sales are normal. The other aspect of NZ culture is that houses are the primary retirement investment due to no capital gains tax and rental income. No one wants to lose out on capital gains or sell their income stream. The inflation in the 1980s and the 1987 stock market crash did tremendous damage to the way people invest in NZ. Australian culture is similar but I don't know why. They don't get the same tax breaks as NZ.
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Sep 22, 2015 05:12
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0% Capital Gains tax and people choose property to invest in? That's some thread-relevant poo poo.
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Sep 22, 2015 06:01
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Breetai posted:Definitely considering it - the budget I'm planning has a lot of provisions for putting aside regular amounts of money for ongoing expenses (medical, emergency fund, emergency home repair, 10% of net pay into long term savings) and I may as well have that money working for me at maximum efficiency. I'll crunch the numbers when I'm at the stage of comparing loan options. Personally I'd rather have liquid capital, you never know what might happen in the future and you may need to move.
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Sep 22, 2015 06:17
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Aliquid posted:0% Capital Gains tax and people choose property to invest in? That's some thread-relevant poo poo. I've put many a bad with money post about the country in this thread. In terms of no capital gains tax it applies to buy and hold. So long as you don't flip or trade your activities won't get reclassified by IRD. Also most stock market investors in the country like dividend payments from their shares despite no capital gains tax. I did some research and I see 401k schemes were devised in 1978 in the US, yet in NZ the equivalent was passed into law in 2006. There are good reasons why we're such a poor western nation. Too bad our primary investment is housing which is as about as productive as investing in gold.
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Sep 22, 2015 06:44
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Bad with money: crippling energy drink consumption, multiple cans a day. Good with money: realizing that I can take free cans of Red Bull from work as much I want. I've worked here for months and I just realized this. I don't even know how much this saves me.
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Sep 22, 2015 08:08
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Vahakyla posted:Bad with money: crippling energy drink consumption, multiple cans a day.
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Sep 22, 2015 08:12
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Jeffrey of YOSPOS posted:Yeah genuine demand can certainly drive crazy real estate growth. The appeal of moving to a large city compared to the suburbs is certainly obvious to me, and millions of others. It's then easily compounded with major space constraints(NYC) or restrictive zoning(sfbay, maybe also NYC?). I would speculate that something similar is true in Australia. Definitely also NYC. Bloomberg and his Planning Director Janette Sadik-Khan got a lot of attention for upzoning parts of the city but the administration actually downzoned far more parts of the city than it upzoned.
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Sep 22, 2015 13:59
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Vahakyla posted:Bad with money: crippling energy drink consumption, multiple cans a day. I hope they are sugar-free energy drinks. Even then though, they put so much junk in those things you're better off drinking coffee. I think I'd rather pay $1-2 for coffee than drink free Red Bulls.
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Sep 22, 2015 14:18
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Didn't Red Bull get their asses sued off on account of not only NOT giving you wings, but not even having as much caffeine as coffee? Besides coffee makes you poop and pooping is good.
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Sep 22, 2015 14:21
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Jeffrey of YOSPOS posted:switching from this to free work coffee was a good with money life improvement I think I have the coffee version of Stockholm Syndrome because I'm starting to enjoy the sludge they call coffee at my job. But it's free, full of caffeine, and I'm saving a mint by drinking it.
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Sep 22, 2015 14:27
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I don't care for coffee, but my chosen alternative is cheap caffeine pills. I get tablets which aren't easy to cut in half, but it's fine for me to take slightly large does (about 220 mg per pill) since I'm not very caffeine-sensitive. And I'm only getting caffeine, as opposed to all the other stuff you have in a sugar-free energy drink. I know coffee has other benefits, but I can only drink it diluted very greatly with hot chocolate or milk & sugar that it's hardly coffee and certainly not healthy at that point. Just the smell of black coffee turns my stomach, and if any drink is too strongly coffee-flavored to me, I'll get nauseated from it later. On the other hand, I love coffee ice creams and beers.
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Sep 22, 2015 14:32
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If you must drink energy drinks, try the Red Thunder knock-off at Aldi's. It's only $2.59 for a 4-pack, so it's much cheaper than Red Bull.
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Sep 22, 2015 14:38
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SpelledBackwards posted:On the other hand, I love coffee ice creams and beers. I had a pumpkin and coffee flavored beer the other day and it was loving delicious. It was good with money because it was free.
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Sep 22, 2015 14:40
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SpelledBackwards posted:I don't care for coffee, but my chosen alternative is cheap caffeine pills. I get tablets which aren't easy to cut in half, but it's fine for me to take slightly large does (about 220 mg per pill) since I'm not very caffeine-sensitive. And I'm only getting caffeine, as opposed to all the other stuff you have in a sugar-free energy drink. I know coffee has other benefits, but I can only drink it diluted very greatly with hot chocolate or milk & sugar that it's hardly coffee and certainly not healthy at that point. Just the smell of black coffee turns my stomach, and if any drink is too strongly coffee-flavored to me, I'll get nauseated from it later. Caffeine pills don't make you poop like coffee does, though. Then again, they also don't turn your teeth brown.
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Sep 22, 2015 17:13
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Eat better if you have trouble pooping. I don't have any issues and I drink about three cups of coffee per year. Caffeine pills are way awesome. I work morning radio and I used to down a couple of energy drinks every morning. Since I figured out the pills, my yearly cost is now about the same as what I was spending weekly. I also get terrible withdrawal symptoms and am trying to wean myself off the stuff entirely, but at least I am saving money.
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Sep 22, 2015 17:40
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Scott Walker has personal credit card debt with interest rates approaching 27%. http://www.washingtonpost.com/news/...-they-mattered/
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Sep 22, 2015 18:22
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Antifreeze Head posted:Eat better if you have trouble pooping. I don't have any issues and I drink about three cups of coffee per year. Or you could just make coffee at home and bring it to work in a thermos.
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Sep 22, 2015 18:35
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Antifreeze Head posted:Caffeine pills are way awesome... Since I figured out the pills, my yearly cost is now about the same as what I was spending weekly... I also get terrible withdrawal symptoms and am trying to wean myself off the stuff entirely, but at least I am saving money. So all you needed to save a few hundred dollars a year was a lovely addiction to over the counter stimulants? Goddamn, sign me up!
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Sep 22, 2015 18:41
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Dillbag posted:So all you needed to save a few hundred dollars a year was a lovely addiction to over the counter stimulants? Goddamn, sign me up! He clearly already had that addiction. What are you, chairman of the Christian Temperance Union?
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Sep 22, 2015 18:48
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Dillbag posted:So all you needed to save a few hundred dollars a year was a lovely addiction to over the counter stimulants? Goddamn, sign me up! It's easy to get addicted to caffeine without meaning to. I'm in the middle of doing house renovations and the only thing keeping me going is a regimen of caffeine and the other crap in energy drinks. I'm not looking forward to weaning myself off, but I really don't think I'd be able to function on some days without a stimulant.
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Sep 22, 2015 18:51
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Story: A guy I know, Chris, graduated with a Psychology degree that took him 5 years to complete. He racked up about 35k in student loan debt. Not horrifyingly bad, really. But after graduation instead of pursuing a psych-related job, Chris decided that psychology wasn't for him. Nope, he decided to go into optometry! Yes, because struggling through five years of college to obtain the easiest BA degree possible with a 3.0 gpa is a SURE sign that he's ready to take on an additional 8+ years of intensely difficult math and science classes! But Chris was determined. His first step was to take some science courses at a local community college to earn a BS so that he was even qualified to apply to optometry schools. He had no income, so he took out a private loan for $16k to cover his tuition and living for a year. The bank gave it to him in one lump sum. He deposited the money into the bank, classes began, everything was cool. Fast forward 6 weeks and Chris realizes that he's sick of school, science is hard, and the chances of this incredibly ambitious plan actually working (i.e. making good enough grades to even get into optometry school) are pretty low. So he says gently caress it, drops his classes and abandons the plan completely. Here's what Chris should have done at this point: pay the remaining loan money back to the bank and get a job. Here's what Chris did instead: live off of the loan money plus credit cards for the rest of the year and accrue $10k in cc debt. Fast food, booze, parties, DVD collecting. Life is wonderful and easy and will continue to be forever! Once the loan money dried up he moved in with his girlfriend while she finished her MS degree, working crappy retail jobs, and basically living life with no discernible plan for the future. All the while being bombarded with calls from collection agencies over the credit card debt he's unable to pay. His credit was getting annihilated. About a year later he decides to go back to school, this time for something more realistic: IT. He finished a BS degree through an accelerated program in 2 years. Of course he did this by taking out another $20k in student loans. The good news: Chris has no more credit card debt (his parents helped pay it off with an inheritance they received) and is currently in IT making good money. The bad news: he's got $75k of student loan debt, a good chunk of which (about $20k after interest capitalization) was used to fund a year of slothful, aimless nothing.
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Sep 22, 2015 20:40
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More New Zealand bad with money: apartments falling apart due to not enough maintenance budget being set aside. http://www.stuff.co.nz/business/money/72149091/apartment-owners-face-maintenance-timebomb Basically I see this a lot as a lot of apartments have had to deal with earthquake strengthening as well as regular repairs. Most owners sell because they can't afford to pay for or finance the repairs. Most of the Body Corporates are wrecked by tight fisted owners not realising the are just deferring expenses that will end up costing them money. Devian666 fucked around with this message at 22:25 on Sep 22, 2015 |
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Sep 22, 2015 20:45
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Thank you, thread, for continually reinforcing that I'm not loving up by putting a house off until my 30s
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Sep 22, 2015 20:57
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Devian666 posted:More New Zealand bad with money: apartments falling apart due to not enough maintenance budget being set aside. I can't imagine paying $1200 a month for a tiny condo unit, which isn't even in an area that I'd call "nice." But $2000? No. Let's not.
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Sep 22, 2015 23:39
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I like the "after years of neglect and low fees...". Yep, that's the problem right there and those apartment owners who sold up prior to the fee increase have profited off the other suckers. In NZ apartment values tend to stay flat, part of the issue is the underlying land (where you get the value increase) is often owned by the developer and you end up paying fees for having the building on the land. All the hidden expenses in owning apartments are a nightmare.
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Sep 23, 2015 00:00
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Magic Underwear posted:He clearly already had that addiction. What are you, chairman of the Christian Temperance Union? He's a rep for chewlies gum.
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Sep 23, 2015 00:16
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It's not like Caffeine addiction is all that serious anyway. Withdrawal involves having some light headaches for a few days, then you're fine. I would know, I've gone through it too many times to count with all the coffee I drink. Renegret fucked around with this message at 00:27 on Sep 23, 2015 |
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Sep 23, 2015 00:24
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Caffeine is good with money because you get a work harder longer, so you get a promotion, so you get more money.
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Sep 23, 2015 01:24
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Right on time there's talk of a slowdown in chinese property investment in Auckland, and local investors requiring 30% equity is now starting to bite as the rules are implemented. The slowdown is also triggering sales of property to realise the capital gains (partly just speculation). Who would have thought requiring chinese investors to get a NZ bank account and an IRD number would put so many of them off purchasing.  http://www.interest.co.nz/property/77762/tony-alexander-says-offshore-chinese-property-buyers-and-undercapitalised-kiwis
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Sep 23, 2015 03:38
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Jeffrey of YOSPOS posted:I saw myself at a crossroads when graduating and was like "yep, definitely not touching this web stuff" so now I work on operating systems and low level network code, we still jerk off manually in my department. thats what happens when creative writing/philosophy majors do a code bootcamp and become "Full Stack Web UX Artisans"
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Sep 23, 2015 04:20
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fakiebeanplant posted:thats what happens when creative writing/philosophy majors do a code bootcamp and become "Full Stack Web UX Artisans" Weird, I am reading it as the complete opposite of that. Plus it's weird to bump a month and a half old comment.
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Sep 23, 2015 16:03
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fakiebeanplant posted:thats what happens when creative writing/philosophy majors do a code bootcamp and become "Full Stack Web UX Artisans" DAE STEM??
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Sep 23, 2015 19:21
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Sic Semper Goon posted:Yet another co-worker decided that it might be a good idea to Sic Semper Goon posted:Professional serial killer. I actually read that list and thought "huh, that sounds about par with the guys I used to work with back when I was a baker". It's nice to know that bakery employees are the same type all over, I guess.
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Sep 23, 2015 21:59
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It turns out Australians are going to receive financial advice by robots. The robots have already been getting together to discuss increasing their commissions. http://www.stuff.co.nz/business/money/72358142/roboadvice-tipped-as-next-big-step-in-investment-planning
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Sep 23, 2015 23:15
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fakiebeanplant posted:thats what happens when creative writing/philosophy majors do a code bootcamp and become "Full Stack Web UX Artisans" As a person with a BA in Photography who now works as a contract UX designer I can report this is pretty good with money.
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Sep 24, 2015 10:38
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