When the cost of an essential item exceeds the cost of replacement, then it becomes a bargain. The cost of property over the last fifty years has increased at a higher level than the average trade person renting, and supporting a family could save to buy into at retirement. The smart people learn that at an early age, and climb on the band waggon.
The real dumb ones argue the point, then get caught out in get rich quick schemes risking their future well being.
Four or five years down the track it becomes much cheaper to pay a mortgage than it is to rent in normal circumstances. The really smart people learn how to use the banks money and not their own to increase their property portfolio.
The cost to replace property or in other words build from scratch has increased at a much higher level than the medium price level.
That is the facts, like it or not, we are now in a position where property will increase in price at a much higher level than general inflation.
A few things to to think over that has happened in the last few years that some of you might be unaware off that will hit your property values shortly.
1,Septic tanks now cost four times as much to install thanks to the greenies.
2,double glazing and over the top insulation rules that pushes the price of new homes to ever higher levels.
3,Engineer reports and resource consents at every turn simply because councils are so incompetant that they now wont make decisions.
4,Plans have to be detailed down to extraordinary levels costing twice as much.
5, Developing property at reasonable prices for the future mum and dads is a thing of the past simply because of cost increases before you even start to build..
In ten years time the price of property will be more than double, just like it has always been Macdunk