Mark Smith

A huge thanks for your post, that sums up my life from 2003 to 2011 in the UK. When asked why I came to NZ, I like to say its because I want the same lifestyle afforded to my parents (through hard graft) but denied as the cards were stacked against my generation.

Justcol

So just to set the record straight so everyone is clear on the matter, Bellasmums family have worked much much harder
than anyone else ever has and they deserve what they have far more than anyone else deserves what they might have.

For goodness sake, take the broom from up your arse and get over yourself love, your not that special

gazmac

This is a great read when working nights, more intriguing than a Jack Ryan novel.

Nothing like a good catfight.

Bellasmum

No cat fight from me. There is nothing wrong with a debate but this is not up for debate I see. The pack is howling loud and clear.

It is amazing how some people can conveniently misuse the contents of a post from its content just because it doesn't sing their song (or is it a full moon tonight).

My comments here are over. Think I will go out and bang my head against a brick just because I can.

gazmac

You better have a bottle of Buckfast before you go banging your head on a brick - and why just the one brick?

Purrball

It's a big problem and it's not just specific to the UK or New Zealand. For those who are interested in looking at the bigger picture, it's also becoming a concern in the United States. Three pieces have recently caught my eye, the first two in the New York Times:



And more importantly, Thomas Piketty's book, Capital in the Twenty-First Century which is making huge waves at the moment. The general scope of his argument is this:




This is also what has happened in New Zealand. Same in parts of the UK. Here's the title of a piece in The Guardian:

What does it tell us about the housing market that my flat earns so much more than I do?

So Piketty is right in the sense that owners of capital — real estate, stocks and shares and so on — are seeing larger returns than those earning wages.

But the additional problem in New Zealand is that a couple of its core industries: primary exports and tourism are not huge earners. They're the pillars of many third-world economies and New Zealand's main problem is that it's so far away from markets for export goods.

So, in the larger sense, the returns from the property market in New Zealand are unsustainable in the long-term because they're outstripping people's ability to earn enough to meet those costs. There will be a stagnation or correction at some point.

This is the Governor of the Reserve Bank of New Zealand just a few months ago:

Doubled over the past two decades. Exactly what I've been saying all along. No amount of harking back to the 70s and early 80s is going to change this fact. It's a totally different world these days and those who can't or won't understand this aren't part of the solution, in my view.

ExKiwilass

The same debate is going on in Vancouver, BC, Canada too. I agree with Purr - this is an international issue.

We were lucky, in retrospect, to get in the market here in 2004. Now I don't know what we would do - probably still buy but in a much different area to where we have ended up with the gross commute to match.

Hokey-pokey

If this happens NZ is stuffed.

bourbon-biscuit

Yeah, I'm not sure I'd wish people to lose 50% of their property value - think of all those folk who would be in negative equity for the next 20 years

I've got a better plan: CGT, plus tighter regulations about what landlords must provide (reduce the get-rich-quickness of being a LL). I have a gas heater and hot water in my rental and when we asked if they could both be checked/ serviced the landlord and the agent thought this a very funny request and have not had it done. Needless to say we won't be using the unflued gas heater (with fuzzed up filters) while here. Also, we have NO smoke alarms, and some windows don't secure shut well- nothing on the DHB site suggests a landlord is compelled to fix these issues, and anyway, we all know the rules: piss off your landlord in a house you like at your own peril.

Northern Henry

Fully agree ,But Davros would be laughing his head off, as this issue wouldn't affect him, however rising house prices do so he's taking his ball home. Don't go moving to London, Vancouver, Parts of OZ, UEA, Paris, most major cities in the UK etc etc. As the ranting will continue once there also.

Some very bitter commentary for an armagedeon situation, which many levelled economic outlook puts as unlikely (in real "crash" terms - a slowing and short-term dip more likely), but such a situation could affect a high number of people, likely young families/ mainly indigenous with mortgages to pay.. Wanting this out of spite is childish.

Hokey-pokey

Yes I've been running through a few domestic scenarios to bring about the 50% drop in Aucklands house prices. Foot and mouth outbreak, volcanic eruptions, terrorist attacks. It's all a bit much for my morning tea break.
Of course if the Chinese economy grinds to a halt that could possibly do the trick too. But that would stuff up the whole world, so maybe that wouldn't be so bad? Or would it? Oh dear

Northern Henry

all possible and rightly so, you missed asteroids ,
But your comment wasn't bitter, more the quoted wish from others to a wider audience in different circumstances.

Hokey-pokey

Thanks I knew u weren't directing at me. I was agreeing with you!

davros1984

The 50% is what needs to happen , however I know its not realistic. It would hurt too many people. Although part of me does wish these people would learn a lesson. Please note that after Bellasmum's shocking comments in another thread, it riled me up (hence an outburst). That was me letting off some steam. But you're right northern henry, it would amuse me.

A friend of ours (she's a nurse) was allowed to buy a house for $700,000 early last year as a first time buyer. She earns a salary of $58,000. As it stands now, she struggles with the repayments, so when interest rates go up..... Madness.

I think a limit on the number of properties you can own, CGT on additional properties etc would help NZ.

As for my return home, moving back around the East Midlands. Looking at some beautiful 4-5 detached houses for around the 225K GBP mark (already have a big enough deposit).

Tom1983

$700,000 on a $58,000 salary? Who on earth did she go with? You don't mind me asking, is it a joint mortgage or a single?

The most I could ever get (before the 20% came in) was $693,000 and my salary is higher than hers.

That's amazing, i'm surprised she was accepted. That's probably 3/4 of her salary gone on mortgage repayments?

I don't want to sound a patronising old idiot but did she not think as to whether or not she could afford this? Did they not give her an inidication of what her repayments would be? I'm shocked that she went through with this - hope it works out but that it is a huge risk she took on.