Residential - Boom or Bust

[KW]

I've noticed the Williams Corp boys are busy pulling their own money out of the WC investment funds.
12 May - $500,000
1 May - $225,000
31 Mar - $605,000

If the funds are sound, why are they sucking their own cash out of it.  Bit on the nose considering they have prevented other investors from getting their money back for a year on the basis that the company needs to hang on to the money

"The development business said it needs to keep the money for longer, documentation allows extend timeframes, and it was "prudent" to do so." https://www.nzherald.co.nz/business/williams-corporations-1524m-investor-funds-six-monthly-withdrawals-extended-to-annually/YPVZBD3KN5FC3OEGMMOFBERIDE/

"Safe as Houses" obviously doesnt mean "Safe as Townhouses" LOL

[Crackity]

As we are leading the charge for investigative journalism here I note the Invest With Us section of the www.williamscorporation.co.nz seems to have been deleted

It used to have the pdfs and investment details of their various funds.

Tick tock tick tock for Williams and Duval et al

[KW]

As we are leading the charge for investigative journalism here I note the Invest With Us section of the www.williamscorporation.co.nz seems to have been deleted

It used to have the pdfs and investment details of their various funds.

Tick tock tick tock for Williams and Duval et al

Maybe the market for selling permanent residency to Singaporean's is dead.  
https://www.williamscorporation.co.nz/how-singaporeans-obtain-new-zealand-residency/

[Stoploss]

As we are leading the charge for investigative journalism here I note the Invest With Us section of the www.williamscorporation.co.nz seems to have been deleted

It used to have the pdfs and investment details of their various funds.

Tick tock tick tock for Williams and Duval et al

I got an email from WC Capital on 3rd May looking for investment funds .Made it look like a Ponzi to me . I wondered how they could still be taking money when they can't repay a good deal of people that want their money out .
 

[KW]

I got an email from WC Capital on 3rd May looking for investment funds .Made it look like a Ponzi to me . I wondered how

I am getting spammed with ads for their "Williams Academy". 

 You cannot view this attachment.

[Stoploss]

I am getting spammed with ads for their "Williams Academy".

 You cannot view this attachment.

I was going to reply to that one and enquire. If you can't repay your investors
why do you think you can teach anyone anything ....

[Shareguy]

I think the market is turning. In South Auckland anyway.

https://www.oneroof.co.nz/news/it-was-a-swarm-44-bids-for-740k-leaky-home-80-bids-for-south-auckland-bungalow-43598

[Onemootpoint]

Slight signs of life in the mortgage market according to this:
https://www.interest.co.nz/personal-finance/123221/reserve-bank-figures-show-seasonally-adjusted-basis-there-may-be-slight

[Shareguy]

Spoke to agent yesterday who works the South Auckland market who said the market is without doubt improving. Early days but more people at open homes, multi offers common, and prices improving. Rents also going up with shortages in some areas.

[Mr Cashflow]

IMHO equilibrium price or sustainable price for property has not reached yet. Moreover, wage inflation, high energy,  raw material prices could lead to stagflation . Purcahsing power is coming down worldwide as a result of on going inflation. Energy  prices have gone up again. The Labour market still remains strong, but rising cost of doing business could lead to job cuts world wide.  It's very scary to see the  global property chart for the past 10 years. What goes up will eventully will come down.

https://www.globalpropertyguide.com/pacific/new-zealand/home-price-trends

[Hectorplains]

Sydney market is firing. 

[Shareguy]

Just came back through Auckland international airport. The queueing for non-residents was all the way to carousel five. I'm  talking maybe 500 people. Lots of them with piles of suitcases and I'm picking future Kiwis. I think house prices are indeed going to rise a lot more than people think.

[KW]

Net passenger movements has swung back to positive recently, although its more of a decrease in people leaving than a sudden increase in people arriving.  July was massive, and Sept is setting up to be another positive month.  This would align with the recent sharp increase in rents, and I would expect more in the future as vacancy rates fall.  Will we get 30% rent increases like in Australia? 

Jan     9,199

Feb   58,997

Mar  -24,355

Apr  -34,339

May -33,250

Jun  -15,930

Jul    46,522

Aug  -7,203

Sept  9,616  (YTD)

The drop in people leaving is likely one of the reasons for the low listings at the moment which will help support prices.  However, unlike Australia which allows temporary residents to buy houses, in NZ even those coming in on permanent resident visas have to wait 12 months before buying.  But that 12 month lag time will be up for those PRs who arrived Sept-Dec last year when the borders reopened. 

Combined with a more positive outlook as NACT looks set to win, and its likely the bottom is in.  A few risks do remain - I think post election the RBNZ will raise rates again, and when NACT revoke the 5-10 Brightline tax there will be a lot of financially stressed investors who will take the opportunity to sell up, especially since Nats have said they won't immediately restore interest deductibility. But that's next years problem 

[Shareguy]

Independent economist Tony Alexander released his latest monthly Mortgage.co.nz survey results from mortgage brokers this morning, showing a surge in inquiries from rental property investors ahead of the election on October 14. Alexander said they were seeing strong population growth from migration, rent growth and a rise in residential land values, along with polls showing a higher chance of a change of Government.

[Shareguy]

This article states that our government reduced the number of rentals with their policies and increased the number of people on the state waiting list.  Tenants pay the price.

https://www.thepost.co.nz/a/nz-news/350085397/unfair-price-landlords-and-tenants-have-paid-misguided-tax-policy