The Weezer

I posted how my husband and his father, in their time, were able to secure property because of a more advantageous economic environment than there is today. People worked hard, they struggled, but they generally were able to buy a house, which is more than can be said about the current generation of young families. I certainly never said they had it easy, because, as anyone who is honest with themselves knows, life in New Zealand isn't. They owned a home, but they still had to live incredibly frugally, and work very hard. I wouldn't like to think I would have to mend and make do like they did just to scrape by. It's no recipe for the good life. BUT they were able to own a home. If they were starting out now. considering the cost of living, less generous social welfare, and insanely expensive housing, I'm absolutely certain they would have resigned themselves to renting. Their generation did not like debt. Today's New Zealanders, many of them at least, need to accustom themselves to enormous personal debt in order to keep up with their elders.

davros1984

You are correct. This is also why I made the comment around a crash needing to happen, people need to be taught a lesson! I do feel sorry for her though that this is what she has committed to. Her partner has a zero-hours type contract so can occasionally contribute (he is a form of standby nurse) so he can chip in a little but doesn't have a regular income.

The madness mentioned above does make it impossible/hard for those of who are sensible. I know my salary, I am not willing to borrow more than 5 times (max)my salary or 3-4 times the income of me and my partner. I have made the conscious decision to stick to the above. Thus I cannot afford to buy a reasonable house in Auckland (whereas at home it is far easier for us).

Those who don't believe me, again happy to list a swathe of properties. We are looking in east/west midlands, so we have the following places to gain employment in: Manchester, Sheffield, Leeds, Derby, Notts, Stoke, Huddersfield, Wakefield, Stafford.

The vast majority of these places have many more IT and nursing opportunities for me and my partner than Auckland. In addition, there's more flexibility on working hours and times. Also, there are a number of pretty villages and towns to relocate to that are all commutable to those areas.

To Hokey-Pokey, NZ (especially Auckland) is already stuffed, you just don't know it yet. House prices are vastly unaffordable for the masses and it will only get worse for our kids and their kids. As Purrball said, at some point the market will have to correct itself.

A Rush And A Push

$700K on a $58K salary seems insane. Surely there must be another income? Or maybe she had a massive deposit due to an inheritance or something?

When we got our mortgage we were on a joint income of a bit over twice her salary and we were told we could go up to about $500K (and this was 2006 so before the GFC). Even that seemed huge to us and we chose to borrow an amount in the low 300's.

A Rush And A Push

Sorry, just read the post again and see she does have a partner, albeit one who doesn't earn much.

I'd love to know which bank/financial institution gave them that big a mortgage!

davros1984

I will try to find out. I will point out though that she is not the only one we know. We know another couple that bought a house up at Gulf Harbour. Today they could not buy the house due to deposit rules, however 12 months ago, they were able to take out a mortgage (approx $580) with a 5% deposit.

Justcol

You are absolutely right, there does need to be massive realignment of Auckland prices, unfortunately when it happens
it will be the rest of us who end up paying for it, the idiots up there who are driven by pure greed deserve every bit of
negative equity and the pain that brings that is coming to them. As I have said elsewhere there will be interest rate hikes
to try and curb the market, this means the rest of us will also be paying more.
Bellasmum is on a different planet where no one is more righteous and worthy than she is, add her to an ignore list
and she can be as pompous as she likes then without it bothering anyone else
Saddly its what everyone else thinks is a typical Auckland attitude, which it isnt, its just her.

Justcol

Cant you get a cream for that !!

bourbon-biscuit

I'm so dense - I only just worked out that Bellasmum's OH is a real estate agent!!!

Hokey-pokey

Hi Davros. I enjoy reading your opinions even if I don't always agree with them! You have an interesting outlook and I think you make some compelling points. I'm keen to read your views on why you believe NZ is 'stuffed'. Apart from the Auckland housing market and corrupt politicians, what other things have brought you to this conclusion? I'm genuinely interested in seeing how others perceive NZ and how these perceptions came about. I'll understand if you don't wish to elaborate further. Thanks HP.

Pom_Chch

WE'RE ALL DOOOMED, DOOOOMED I TELL YA!

Stormer999

davros1984

I have to say justcol, you really made me laugh when you wrote this. I really felt she was out of line. On the Work/Life balance thread her post r.e. "my generation" was really out of order. Hence my somewhat angered post there and here. Anyway, glad to see we can agree on here .

HP - all good. I appreciate what you've said there - thanks. I always listen (or read in this instance) to what everyone has to say on here and try to take their point on board. Certainly I appreciate that everyone has different experiences, different situations and backgrounds. I do believe that I speak for the skilled worker in Auckland or young family in Auckland who don't have wealthy parents to help with deposits, who aren't sitting on a large pile of cash and who are just trying to get on/get ahead with life. Glad you enjoy reading the opinions . having known a life in the (and having been back twice in the past 2 years for good and bad reasons), I can honestly see how much more affordable housing is in areas where there is an abundance of work (compared to Auckland especially).

So in the main, I feel Auckland is truly stuffed because...
1) Growing population without sufficient housing
2) Cost of housing in Auckland is simply unaffordable for the vast majority (and that % will only increase). I am not sure if you spend much time in the CBD in the evenings, but I can tell you that the CBD has changed a lot in the past 2-3 years when it comes to homeless and being harassed on the streets. I am seeing more and more "tramps" or homeless people.
3) Growing population without sufficient public transport and infrastructure to support it. No trains to the shore yet!!! 1 Harbour Crossing - DOH!
4) The greed culture in Auckland. Its vile, totally disgusting. People are obsessed with house prices, mortgages and how much they've borrowed.
5) No control on overseas investors and a 1million of savings NZD visa guarantee (that really isnt much to a good number of Chinese now, hence so many coming to Auckland and snapping up properties).
6) No CGT

Onto NZ... and for the record (where I've posted elsewhere on here) I do like/love NZ a lot. If it wasn't for the crazy prices in Auckland, as discussed at length we could quite easily settle here.
1) Rich people leaving Auckland and driving the prices of houses up elsewhere, i.e. Waikato/BoP
2) Investors targeting areas outside of Auckland, i.e. Hamilton + surrounds
3) How long its taking to sort out CHCH and how so many investors/entrepreneurs have pulled funds out of CHCH
4) Cost of Housing in CHCH (but my friend: POM_CHCH has demonstrated to me that its OK if you're a good 30-40 mins out of CHCH - fingers crossed for you).
5) The Government's policy of making it all about Auckland. The longer I spend in Auckland city, the more and more people I meet who have moved up from the regions, or WLG or CHCH or S. Island as so many jobs are disappearing from there and it appears to be increasingly difficult to gain employment there. In my view, NZ is so empty, businesses should be encouraged to relocate offices or allow employees to relocate where possible.
6) The continuation of the government to ignore the founding principles of the treaty, that NZ is for all and all to be equal. It appears there is a bigger divide between the people of NZ than ever.
7) Allowing WLG to slowly die (John Key's words).
8) NZ'ers not being engaged or too caring about the future of NZ (need more WP voters )
9) The pissing around in CHCH, they need to get on and fix that city including the Cathedral. I meet so many CHCH people (especially when on holiday who are at the end of their tether). The Mainland needs its capital city.

Yeah-nah!

Mark Smith

Sounds like NZ and most other developed countries to me.
http://www.spectator.co.uk/features/...-child-policy/

davros1984

Mark Smith - Good article.
I fear in general for the working and middle-classes. Those born in the 50's and 60's appear to have benefited immensely at the expense of future generations. (I especially blame the 60's decade for a lot of societies ills)

However, in comparison to the Auckland region, the SE does have lots of trains and public transport options. Thus you can get a house for an "affordable level" (less than 250K) with a commute to London. I would argue though that it wouldn't provide a good quality of life.Certainly it is tough, hence why we are moving to a cheaper area of the UK. After living in Auckland, we've had enough of over-priced areas.

Examples:
http://www.rightmove.co.uk/property-...-29111814.html
http://www.rightmove.co.uk/property-...-44652440.html
http://www.rightmove.co.uk/property-...-42761980.html
http://www.rightmove.co.uk/property-...-44248763.html
http://www.rightmove.co.uk/property-...-29136258.html
http://www.rightmove.co.uk/property-...-44612516.html
http://www.rightmove.co.uk/property-...-43846274.html
http://www.rightmove.co.uk/property-...-43547087.html
http://www.rightmove.co.uk/property-...-42746416.html

The last house in particular, there are houses as small as that being built over in Hobsonville and they are starting at $630,000:
http://www.hobsonvillepointliving.co...l%20Homes/163/

Justcol

Ah yes the supposed "AFFORDABLE" housing at Hobsonville

The 3rd one from the list looks nice and would be a nice easy commute to good ol' Landan Tarn