Responsible Lending? I wonder….

[blackcap]

It seems to me that a lot of younger first home buyers these days, are not prepared to do what my generation did. We bought a house we could afford. It needed work done. We did it ourselves (most of it anyway). We didn't expect to have a designer kitchen, two bathrooms, a carpeted garage, a spa pool or a BBQ area. We started at the bottom, paid our mortgage off as quickly as we could, and it was "home." We stayed in our first house until my ex's work situation changed and we had to re-locate. At that point we bought a "better" house, which was younger and needed little done to it. We raised two more kids in that house.

Yes, I understand and appreciate that this was many years ago, when interest rates were low, but so were wages compared to now. I also get that house prices are vastly different (ridiculous!) now - but that aside, home buyers need to take responsibility for their decision making. Do your maths and work out what your proposed mortgage will cost you if the worst case scenario arises, interest wise. If it is obvious that you would be screwed if it happened, don't bloody buy that house!

It's not rocket science.

Totally agree with your sentiments. People not willing to do the hard work but also not willing to start humble. I remember my uncle and aunt lived in a garage for 2 years before they had enough money to build their home.

That said: I remember when I was just out of uni, starting salary was $30k. I then bought my first 3 bed home for $73,500. Mortgage was $50pw.

Now starting salary out of uni is $70k? But that same 3 bedroom home I recently saw priced at $695,000.

That is a world of difference. Starting grad salary about double. Price of home almost 10 fold.

[justakiwi]

I agree. But people seem reluctant to ever consider relocating to somewhere far less expensive. It does to some extent, depend on what job you have, but in this day and age, many "professional" type jobs can be done remotely. Jobs at the other end of the spectrum can literally be done anywhere. Why would someone working as a caregiver, cleaner, cook, teachers' aide, builder, mechanic etc, choose to live in Auckland and pay ridiculous house prices, when they could very easily find a job in a far less expensive city or town? If you want more bangs for your buck, you seek out a location that will give you that.

Lifestyle is what you make it. You get to enjoy your lifestyle significantly more if you are not stressed out worrying about how to pay your $800,000 mortgage. If you can buy a similar house for $600,000 elsewhere, why would you not do that???

Totally agree with your sentiments. People not willing to do the hard work but also not willing to start humble. I remember my uncle and aunt lived in a garage for 2 years before they had enough money to build their home.

That said: I remember when I was just out of uni, starting salary was $30k. I then bought my first 3 bed home for $73,500. Mortgage was $50pw.

Now starting salary out of uni is $70k? But that same 3 bedroom home I recently saw priced at $695,000.

That is a world of difference. Starting grad salary about double. Price of home almost 10 fold.