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04-09-2021, 01:48 PM
#2251
Originally Posted by artemis
That is not what I'm saying at all. I am saying that planning for home ownership while there are two incomes and shared expenses is rather more likely to result in home ownership than in life long renting in private or social housing. This is not new.
Feel free to disagree but suggest that first check out the examples and anecdotes in the N&S article, including which organisations have provided them and see if you think there is an agenda running. Ask yourself how many of the thousands of first home owners who buy each and every month were interviewed about how they did it. Apparently "according to one estimate, 70 per cent of first-home buyers need the Bank of Mum and Dad to help with a deposit" - we are not told who estimated this, or based on what.
Are there stats on the average age of first home buyers and on the average age of first time mothers, who own their own home. I suspect aspiring geriatric mothers (age 35+) are more common as result of delayed motherhood becoming more frequent as couples struggle to afford a suitable stable home, without being dependent on a Landlord's agenda. Although only anecdotal I know of several situations like that.
Last edited by Bjauck; 04-09-2021 at 01:49 PM.
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13-09-2021, 08:54 AM
#2252
Wow $1million average. Save a $200,000 deposit and take on an $800,000 mortgage.
https://www.oneroof.co.nz/news/40139
Quotes from the article.
Arthur Grimes, former chairman of the Reserve Bank and a former board member of the Financial Markets Authority, said the situation was “crazy”.
“It’s appalling to pay [$1m] to get an average house in New Zealand, in a country with huge amounts of spare land and not much population,” he said.
“It just comes back to intergenerational inequality. The haves just get richer and the have-nots get poorer and nobody seems to want to do anything about it.”
Focus on building
Nick Tuffley, the ASB’s chief economist, said that for first home buyers, access to the “bank of mum and dad” mattered a lot more.
“That’s where it’s turning it into the fortunate remain fortunate but the unfortunate are finding that bottom rung just keeps lifting away from them,” he said.
A focus needed to be placed on bringing down the cost of building houses, he said, pointing out that other countries were able to mass produce homes much better than we do.
I wonder what Arthur Grimes thinks we can do. He has said take the inflation target back to 0-2%. I wonder if he has any other solutions.
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13-09-2021, 09:17 AM
#2253
Originally Posted by Aaron
Wow $1million average. Save a $200,000 deposit and take on an $800,000 mortgage.
https://www.oneroof.co.nz/news/40139
Quotes from the article.
Arthur Grimes, former chairman of the Reserve Bank and a former board member of the Financial Markets Authority, said the situation was “crazy”.
“It’s appalling to pay [$1m] to get an average house in New Zealand, in a country with huge amounts of spare land and not much population,” he said.
“It just comes back to intergenerational inequality. The haves just get richer and the have-nots get poorer and nobody seems to want to do anything about it.”
Focus on building
Nick Tuffley, the ASB’s chief economist, said that for first home buyers, access to the “bank of mum and dad” mattered a lot more.
“That’s where it’s turning it into the fortunate remain fortunate but the unfortunate are finding that bottom rung just keeps lifting away from them,” he said.
A focus needed to be placed on bringing down the cost of building houses, he said, pointing out that other countries were able to mass produce homes much better than we do.
I wonder what Arthur Grimes thinks we can do. He has said take the inflation target back to 0-2%. I wonder if he has any other solutions.
He has some good points,I found this doctor he has some even better points.
https://youtu.be/M63C14437rQ
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13-09-2021, 09:20 AM
#2254
Originally Posted by Aaron
Wow $1million average. Save a $200,000 deposit and take on an $800,000 mortgage.......
Yes it is a bit crazy, but the median sale price across the country is a tad less than a mill (REINZ). That means half sales are under the median. So the first thing is to consider buying a first home in that half. Of course tens of thousands FHBs manage to buy each year.
Household of DINKs in my family, both under 25, have well over $100k (and rising) in Kiwisaver between them. They have a plan.
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13-09-2021, 09:39 AM
#2255
Originally Posted by Aaron
Wow $1million average. Save a $200,000 deposit and take on an $800,000 mortgage.
.
"Yet, figures from OneRoof’s data partner Valocity show that first home buyers are still active in the market. In fact, their share of new mortgage registrations has barely changed over the last two years, dropping less than two percentage points from their 40.7% share in the third quarter of 2019 to 38.9%."
1mil isn't actually a significant amount compared to M3 money supply in the system.
Last edited by TeslaGod; 13-09-2021 at 09:41 AM.
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13-09-2021, 10:13 AM
#2256
Originally Posted by Bjauck
For those who don't already own substantial equity in a house, then owning a house with today's valuations is being wealthy?
With the current highly inflated values, unmortgaged home owners may have the option of downsizing and investing or selling, renting and investing. Moreover for those who already own a house and then inherit other ones, that will be where the wealth may also amass.
Originally Posted by TeslaGod
"Yet, figures from OneRoof’s data partner Valocity show that first home buyers are still active in the market. In fact, their share of new mortgage registrations has barely changed over the last two years, dropping less than two percentage points from their 40.7% share in the third quarter of 2019 to 38.9%."
Of course, not everyone is buying the 'average' home - half are buying below 'average' homes so don't need so much deposit.
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13-09-2021, 10:16 AM
#2257
Originally Posted by TeslaGod
"Yet, figures from OneRoof’s data partner Valocity show that first home buyers are still active in the market. In fact, their share of new mortgage registrations has barely changed over the last two years, dropping less than two percentage points from their 40.7% share in the third quarter of 2019 to 38.9%."
1mil isn't actually a significant amount compared to M3 money supply in the system.
That couldn't possibly be any more irrelevant.
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13-09-2021, 10:22 AM
#2258
Originally Posted by fungus pudding
That couldn't possibly be any more irrelevant.
It's irrelevant to you because you don't understand how money in the system works.
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13-09-2021, 10:24 AM
#2259
Originally Posted by dobby41
Of course, not everyone is buying the 'average' home - half are buying below 'average' homes so don't need so much deposit.
Arron want's his first home to be above average with a short walk to Ponsonby cafés.
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13-09-2021, 10:33 AM
#2260
Originally Posted by fungus pudding
That couldn't possibly be any more irrelevant.
I don't know. I thought inflation was always and everywhere a monetary phenomenon(milton friedman)
A graph of the NZ money Supply M3 from 1977 to 2020 (I think)
https://tradingeconomics.com/new-zea...ch%20of%201977.
A graph of NZ house prices.
https://www.rbnz.govt.nz/statistics/...e-price-values
I think FP is arguing that it is just a matter of supply and demand, and investment in houses has been lagging population growth no doubt, but there also seems to be a correlation between money supply and house prices and an inverse relationship to interest rates. Central banks might be creating significant inflation but not in the CPI.
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