Originally Posted by
stanace
What I find interesting is that no one remarks on the following;
1 Interest rates overseas for borrowing are far lower than NZ, in fact in some places they are negative, which means that anyone overseas, not just China, or Asia, can borrow money to invest in NZ, at a cheaper rate than us.
2.I do not have the figures, but what percentage of New Zealanders own a property? And I mean own, mortgage free. I would think that would be quite a low number, although many have mortgages.
3. Which leads to point 3. People do not want to buy a home, most want to get on the property ladder. After all, if most people have not paid off their mortgage, and sell after about 7 years, (I think that is the average that a house is held for). then it is just an ongoing cycle which has been going on for years.
4. And for those older people who are making a fortune due to price increases, will their children not benefit, either when it is left to them, or immediately, when the bank will lend based on the increased value.