NZ 1st homebuyers are ScReWeD...

[TeslaGod]

I suppose what i'm hitting at is why does NZ have to be #1 of having the most unaffordable housing in the developed world?

Because New Zealand is the best country on Earth , possibly universe*

*(To be verified)

https://youtu.be/h_9jhYwpcmY

[ynot]

I suppose what i'm hitting at is why does NZ have to be #1 of having the most unaffordable housing in the developed world?[/QUOTE]

That's an interesting question.
Obviously the problem stems from a few unique facts. The planet's are all all alligned so to speak and our unique set of circumstances culminate in the result being very high house prices.
These circumstances didn't happen overnight, they mature over time and the result is what we see today.
Whats more, it would probably take a left field event to bring it down but I have no idea what that would likely be.

[Aaron]

I smirk when this new generation of investors don't get there way, they spit the dummy.

Get a few more miles on the clock so you can figure out how the world really works .

I'll take the bait.

The Accommodation Supplement in the words of MSD. Accommodation Supplement is a weekly payment which helps people with their rent, board or the cost of owning a home.

I made the assertion that it was a $1.7billion taxpayer subsidy to landlords.

artemis countered that assertion with. "Some tenants don't pay their rent so it isn't" His exact words were "Not an argument. It's a fact. 100% up to the recipient to spend or save."

Despite the name of the supplement the fact that most people pay their rent artemis doesn't see it as a subsidy for landlords. I would have thought checking the percentage of home owners collecting the supplement would have been a stronger argument than that, but I suspect a large percentage would be renters.

And I don't deny that artemis is correct but hardly enough to refute my initial assertion, so my only response was.

Whatever....

"Don't be a f**king idiot" might have been as equally appropriate.

and if I knew his/her age I could have used the classic

"OK Boomer"

Unfortunately my modest financial position precludes me from using the follow excellent arguments

-I'm rich
-Your a socialist or a greenie
-Your rich?...... well I am even richer

All great unbeatable arguments to any discussion and does away the need for "facts", common sense or logic.

[Aaron]

Saw this and thought of SBQ, haven't read the article as I still don't care about the Canadian residential market but reading the headline not the perfect nirvana for housing that it is sometimes portrayed as on this site. Legislation in Canada not quite perfected yet but must be getting close soon.
Or maybe they could tighten up the money supply and raise interest rates. Who knows.
https://www.zerohedge.com/markets/ca...ore-government

[fungus pudding]

Saw this and thought of SBQ, haven't read the article as I still don't care about the Canadian residential market but reading the headline not the perfect nirvana for housing that it is sometimes portrayed as on this site. Legislation in Canada not quite perfected yet but must be getting close soon.
Or maybe they could tighten up the money supply and raise interest rates. Who knows.
https://www.zerohedge.com/markets/ca...ore-government

There is an unbelievable amount of rubbish talked about housing. An undersupply is hard on purchasers. An over-supply is hard on vendors. There is nothing else to know.

[TeslaGod]

Great article Aaron

I couldn't stop laughing

It was as if Trudeau was learning from the book of New Zealand Realestate.

They can't have there housing market fall, just like us.

All politicians lie for the power grab.

I used to believe there would be only two reasons why the housing market would collapse.

War or a pandemic which could wipe out a large amount of the population.

Now I'm even doubting that will lower house prices , permanently anyway.

[Aaron]

There is an unbelievable amount of rubbish talked about housing. An undersupply is hard on purchasers. An over-supply is hard on vendors. There is nothing else to know.

I still think interest rates and monetary policy play a part in the price rises (inflation). As a kid I used to dream of being a millionaire, turns out my dreams weren't very big.

Mass immigration and a lack of supply (Note RMA mention in article) have played a large role, making this article more relevant regarding supply.

https://thespinoff.co.nz/business/09...f-the-century/

[TeslaGod]

I still think interest rates and monetary policy play a part in the price rises (inflation). As a kid I used to dream of being a millionaire, turns out my dreams weren't very big.

Mass immigration and a lack of supply (Note RMA mention in article) have played a large role, making this article more relevant regarding supply.

https://thespinoff.co.nz/business/09...f-the-century/

You might want to reassess "dreaming of wanting to be a millionaire"

Billionaire should be the next goal for you.

Millionaires are growing off trees in Auckland

[dobby41]

You might want to reassess "dreaming of wanting to be a millionaire"

Billionaire should be the next goal for you.

Millionaires are growing off trees in Auckland

When I look at wealth I don't include my family home - I can't eat it.
Investable wealth is what counts for me.
So not as many millionaires in Auckland by my count.

[SBQ]

There is an unbelievable amount of rubbish talked about housing. An undersupply is hard on purchasers. An over-supply is hard on vendors. There is nothing else to know.

I agree. In Canada, the cumulative figures are significantly a lot less than NZ house prices. This kinda reminds me of the bond market in Japan where they trade separate from the rest of the world. You have housing bubbles in N. America where they say a 15% rise in 1 year is a bubble, then you have the NZ figure that is well, significantly higher. Where does this all lead?

Maybe Zerohedge needs to have a look at the NZ housing market? Or maybe NZ is so far away from the rest of the world, it really doesn't matter (just like the responses I hear abroad from how we are dealing with Covid "An elimination strategy in NZ? Who cares!??"

The media in Canada talks about housing being unaffordable - but from the NZ perspective, it's clear the Cdn gov't has done a hell of a lot more to address that issue than what NZ has done. The article references to the extreme for Trudeau to provide a lot more for first home buyers, despite already having multiple programs in existence:

https://www.canada.ca/en/revenue-age...yers-plan.html

https://www.cmhc-schl.gc.ca/en/nhs/c...uyer-incentive

In addition to the CMHC forcing banks to provide low interest rate mortgages through their insurance scheme.

But don't take my word for it and no one is expected to care. I'm just seeing with my own eyes the friends I have in Canada, seeing their children grow up being able to get into their first home without paying most of their entire life, working like a dog just to service the mortgage for most of their life. Their ability to enjoy higher disposable income (noted by the toys and vehicles they're more able to afford) that is kinda incomparable to the NZ counterpart.

Again like all other things, you can't take housing prices in Canada (or Australia) as an absolute. As Bernard Hickey is saying, all hope is lost in NZ. Those that aren't on the housing ladder in NZ and paying rent living in a poverty lifestyle should simply move to Australia where wages are higher, rents are lower, and houses are a lot more affordable. You don't need to be a rocket scientist to see that in NZ, a lack of housing supply, lack of demand controls such as taxation = a disaster for NZ home affordability.