barnsleymat

it was shown on Sunday, we watched it thanking our lucky starts we'd got away from the rat race up there.

I'm not sure if you'll be able to watch it overseas but I thought I'd post it anyway.

http://tvnz.co.nz/sunday/2013-06-16-video-5466290

kodachrome

From the Immigration angle, to the first time buyers to the pent up demand and low Interest loans, its Ireland 2005, word for word.

jmh

I agree that house prices are too high. But I don't get where young couples like the one in the film have this idea that on a single income they should expect a nice family home and a section in a good part of the city. In the old days you started cheap and worked your way up. My parents (in Auckland) really struggled on one income for 10 years (mum has stories of watching me, her first child, in a cot with sacks on the windows for curtains) but they struggled and saved, bought a house in a cheap area and once mum went back to work they were able to afford a section out of town and built a really nice place. Now couples expect to have all this ready made and still on one income. At the end the couple were a bit more realistic, but they didn't really illustrate the point of the piece very. I started with a poky little flat, now after years of paying off a mortgage I can afford a nice house.

I think as the BNZ guy said, the knock on effect will be growth in other areas as people move out of Auckland (a bit like the way London has grown). When I was a kid you went to Orewa for a holiday, now people commute from there!

Hazelnut

Watchable in the UK

Interesting that the real estate guy says native NZers stop working at 8-9pm whereas immigrant Asian people work on until midnight. I was rather hoping for a better work-life cut off if we moved to NZ At the moment I work around 30% over my contracted hours every week with no additional pay and I was rather hoping to move to just working my contracted hours.

Bo-Jangles

I saw the TV prog on Sunday but not watched this again so could be wrong; however I recall he was referring specifically to real estate agents working those hours and earning the big money, rather than everyday folk.

Most ordinary people are tucked up in their beds before 9pm

MrsFychan

my husband works longer hours here and weekends and is expected to now travel for his work. provide the money himself for flights, cabs, parking etc and then claim the money back

I'm also expected to pay out for items for my work and claim it back.

Charismatic

I posted statistics here a while back pointing out it was actually worse by some affordability measures.

As long as export commodity prices keep rising and hence NZD keeps gaining inflation will be kept low allowing RBNZ to keep rates low. Despite much talk of action by both the reserve bank and government no serious measure has yet been implemented.

Basically house prices in a are growing at about 20x the rate of wages (0.7% wage growth in June 2012 v.s. 14% house price growth in Auckland, 9.2% nationwide).

However I think it was Peter Lynch who commented that bubbles keep going longer than most people anticipate before they collapse.

elk1973

house prices rise, people still want the house, the banks loan more than peolple can afford, people eventually default on their mortgage repayments, banks have bad debt and hey presto...its Europe.
However I get the sense the NZ scenario is different, from this film, it looks like its foreign money that could be driving up the housing market in whic

whitesand

It is foreign money which is driving up the housing market. Mostly Asian money. Young couples are getting outbid at auctions and don''t stand a chance against the amount of money flowing at the auctions. Some are buying multiple houses at the same auction. Also, there are many shops and businesses being sold and most are bought by Asians and some areas of the North Shore are becoming foreign dominated. I have seen a tremendous change even in the past ten months since I return from overseas.

jmh

I think land banking is driving up prices too.

Bo-Jangles

It's always some other 'wealthier' Johnny Foreigner's fault, for years they blamed it on cashed up Poms and today they're saying it's the Aussies.

http://www.nzherald.co.nz/business/n...ectid=10891504


I suppose next they'll be telling us its the Austral-Asians.

Such contradictions and triteness; especially when some immigration categories particularly seek to entice wealthier foreigners willing to invest in property.

BlackCrossInResidence

Went to an open home in Mt Eden last week - 30 people there - 26 Asians and 4 'non-Asians'. The Asian agents seemed to have little interest in speaking to non Asians.

paddy234

Watching this i was quite surprised to see New Zealander's not seeing the connection between what happened in area's such as the US and Ireland and what's happening here. Greed, greed, greed for too many. The reason's why the bank's will do nothing here is because of the significant profit gain's and when it does collapse which it CERTAINLY will at this rate they won't suffer one penny from it. They'll get their money through the government forcing all of you to pay them which is what's happened in the US and Europe.

People need to understand that those who did this to the US and Europe would do it all over again if they could. They are not the one's facing the consequence's. If left alone some men's greed know's no limit's so intervention need's to happen and sooner rather than later to prevent the inevitable economic collapse that could result. This attitude that market's left alone will mean prosperity for all is nonsense and some thing's need regulated. Foreigner's aren't the problem as they alone couldn't sustain this growth and therefore will also be affected when it does collapse. New Zealander's next time in the election's need to elect those who recognize this and put sound proposal's forward on how they will prevent this from happening.

New Zealand has so much potential for Growth. It's a country 20% larger than Britain and has only 4 million people compared to Britain's 60 million. It need's more growth but it has to be sustainable which will mean it's industries will flourish. So sad to see New Zealand going down this route however

jmh

The problem is the electorate seems to fall for the charms of John Key whose success is pretty much down to market forces. I guess there is no credible opposition offering a new vision that doesn't sound like socialism - I would like a bit of socialism, but here we've caught the red tinted phobia from the US which scares people away from any suggestion of state control. And of course, the wealthy encourage that, e.g. Key's reference to the 'far left' when Labour and Greens suggested price controls on residential power prices.

davros1984

Another article on stuff today showing further madness:
http://www.stuff.co.nz/business/mone...r-half-a-house