NZ 1st homebuyers are ScReWeD...

[troyvdh]

Mary Holm (RNZ) 1515 hrs...again stated that NZ house prices ..relative to income were the highest in the world.

It aint going to be pretty.

People may remember a few years back ..in the UK...I believe about 40 % of house owners experienced negative equity i.e. their mortgages were higher than the value of their home.

History repeats.

[Valuegrowth]

Mary Holm (RNZ) 1515 hrs...again stated that NZ house prices ..relative to income were the highest in the world.

It aint going to be pretty.

People may remember a few years back ..in the UK...I believe about 40 % of house owners experienced negative equity i.e. their mortgages were higher than the value of their home.

History repeats.

Yes. 100% agree.

[kiora]

"What it's really like to try and develop housing in Auckland"

https://businessdesk.co.nz/article/p...ng-in-auckland

[Aaron]

Saw this in the herald this morning.

https://www.nzherald.co.nz/business/...AAJB7XGEW6OWI/

New Zealand topped a 2022 OECD chart for tenants spending more than 40 per cent of disposable income on rent, outstripping Britain, Spain, the United States, Canada, Ireland, Japan, France, Italy, Germany and Austria.

Congratulations to Labour and National should be in order I think we are almost at a boomer home owner utopia. National putting on some finishing touches like interest deductibility, ease of eviction, if only they could get rid of the loss ring fencing we would just about be there. I think this sets up the retiring boomers in a comfortable unassailable position. It is what the major parties have been working towards and pandering to, for many years now.

It is good to see it all coming to fruition just at the right time.

Sadly a lot of young NZers are not buying into the plan and they are moving overseas in record numbers, but not to worry more than enough immigrants to take their place. And they are willing to work and don't eat as much smashed avocado on toast.

With rents so high, there should be plenty of funds available to visit grandkids in Australia or the UK. Mind you if you own the houses your kids are probably not the ones leaving.

Hope the young ones staying have some leftover after rent as they have kiwisaver and student loans coming out of their wages and they need to pay the tax for the increase in national superannuation which is not income or asset tested as well as increased health costs. Home owners don't want to pay for it with a capital gains tax so it will have to come from labour or more borrowings.

[Panda-NZ-]

Yes. 100% agree.

In Aus outside of sydney capital gains seems to subsidise lower rents ($2 mil houses in melbourne for instance but only $6-800 pw).

In NZ piglet landlords want both capital gains (tax free) and high rents. I hope they get neither in the next 5 years assuming the market adjusts closer to NZ incomes.

[Aaron]

Chris Bishop reckons he will bring house prices down? Political suicide?

https://www.interest.co.nz/property/...shop%E2%80%99s

If he is serious all power to him but as this article points out.

In 2007 John Key also made a serious sounding speech about the “home affordability crisis” and how he planned to fix it if the National Party won the election.

I know Chris Bishop has said he wants to double the population of NZ. Not sure how that brings down house prices?

https://www.nzherald.co.nz/business/...KACSHBJX4KBIY/

Talk is cheap Chris Bishop, what are the policies to do this?

Chris Hipkins knows which way the selfish self centred electorate blows, to quote from the article.

And Labour leader Chris Hipkins said deliberately reducing house prices was not "responsible" and Government policy should only aim to hold prices steady, so that recent home buyers don't lose out.
But since there are always new buyers, Hipkins was effectively saying house prices should only ever go up. This is the implicit promise property investors have been taking to the bank.

What a little vote grabbing spineless weasel Chris Hipkins is, he was weak before the elections with his "captains call" on capital gains tax and he is showing himself to be weak now, no vision for the future just pandering to selfish aholes in the hope of getting votes and a pay rise next election. I would be unlikely to ever vote for him, but this statement/promise should improve his standings with the all important selfish boomer/Gen X vote.

[Aaron]

Here is Chris Bishop's plan (too many Chris's in parliament at the moment).

https://www.nzherald.co.nz/nz/politi...IDRWTUEEOGYEU/

Flood cities with houses, to be achieved by liberalising planning rules. Leaky home crisis anyone?

Then flood them with people from overseas and NZ can be just another overcrowded s*ithole country. I have not heard many people coming out of Auckland saying how they love the congestion, the crowds and the queues, but what the hey.

Even if the flood of immigrants can bring wages down enough we have the tyranny of distance if we are going to start competing with China and Vietnam for manufacturing jobs.

I would prefer Scott Technologies et al to replace people with machines.

I guess Christchurch is being held up as an example of what can happen if govt and councils open up land. Christchurch house prices have been reasonable compared to Auckland since the earthquake. Not sure of the stats but by that simple logic you would assume that the West Coast must have the least restrictions on land and housing development.