If I advertised a house for sale, knowing in 5 years time that my income from rental was going to reduce by 1/3rd and also knowing that my neighbour in the next year was going to change and become a gang house – then I wouldn’t expect a high market price. In fact I probably wouldn’t even sell knowing all that. However the government has sold Meridian, knowing that 1/3rd of its income is in jeopardy ( potentially losing the aluminum smelter as a customer) and having the Labour/Green choir singing that they will unravel the deal. Good luck to the shareholders is all I can say.
We have had the same issue with the Reserve Bank ( read that as the government) with the 20% house buying equity nonsense…..Maybe the reason for that was to take a huge numbers of New Zealanders out of the house market and dangle in front of them the Meridian share offer….well that failed miserably and now the poor first home buyer has to see houses going up by another 10% in Auckland, meaning the chance of owning a home ( which actually becomes a compulsory superanuation plan, as paying off a mortgage is compulsory ) is lost.
Instead the government should be encouraging everyone to get into a home as once its paid off that allows the elderly to have a comfortable old age supplemented by the ridiculously small pension. Anyway Equinox still have loads of houses to sell so don’t contemplate buying a house or apartment in auckland without going to www.eqgroup.co.nz
Thats all for today!