One of many tactical mistakes made in WW1 was the lack of decentralised command. Simply put, lower ranked officers and soldiers on the ground were not permitted to make decisions in response to changing situations. This lack of real time data causes the same problems in the real estate market. The market has changed so rapidly and by the time the media releases sale data and trends it is too old to make...
Hindsight is the easiest way to identify a property bubble. But, the problem with hindsight is that it provides no protection for the present. Economists like to theorise the events that lead to a property bubble. And to attempt avoiding one, they indicate that a market has peaked or is about to fall. The problem with the identification and avoidance of a property bubble is that you expect the...
It has been said that climbers who choose to scale the mighty Mt Everest actually face the most danger on their descent. In the minds of many, successfully scaling the summit is the goal. But, the relief of reaching this milestone can cause a lack of focus on the return to base camp. The same holds true for the NZ property market. With many areas of the country, including Wellington, showing strong growth,...
A pinch of rateable salt. For those who don’t live in Wellington, or read the Dominion Post, you may have missed a recent article heralding the success, or otherwise, of a real estate company who had achieved a sale price of $700K above the RV for a home in Wadestown. The company in question waxed lyrical about the result but omitted key facts notably that the property had undertaken extensive...