Labour / NZ First Government

[Bjauck]

You need to be reasonably wealthy and well-paid to even get the deposit and leverage necessary to enter the real estate market. So many people are excluded from sharing in all those leveraged capital gains. Labour's core support used to be from those who were not so wealthy. However I agree that the current after tax yield curve, has meant that those who are able to invest in assets, whose returns are mostly in the form of capital gains, are the beneficiaries of current policy and the system.

[artemis]

You need to be reasonably wealthy and well-paid to even get the deposit and leverage necessary to enter the real estate market. So many people are excluded from sharing in all those leveraged capital gains. Labour's core support used to be from those who were not so wealthy....

The article at the below link is worth a glance - The benefits of rising wages and lower interest rates on mortgage payments for first home buyers have been more than wiped out by rising house prices.

Can't argue with that, but check out the tables in the article. They set out deposit required at 10% or 20% for typical first home buyers and prices in the lower quartile. Including years needed to save the deposit, and repayments as % of after tax pay.

The years to save are not zero, obviously, but are surprisingly realistic except perhaps for Queenstown and Auckland. Even then those locations are under 5 years to save 10% deposit, not that onerous if these households are determined and focused.


https://www.interest.co.nz/property/...st-home-buyers

[nztx]

https://www.stuff.co.nz/national/124...of-mine-tunnel

Andy (The Scruff's) pet project - wasn't it ?

Peters liked the idea too ..