The shock impact of 55% of home owners with a mortgage walking off low interest rates to high interest rates and the economic knock on impact of that have been sorely undercooked.
We are a much poorer people than our inflated housing valuations portray.
The % of income spent on mortgages
60%- Tauranga
55% – Auckland
49%- NZ average
47%- Hamilton
47%- Christchurch
44%- Wellington
43%- Dunedin
We can’t allow first time home buyers to start falling over and see an entire generations wealth burnt off.
The State need stop step in here and offer owner occupiers of first time homes a Mortgage backstop via KiwiBank if the Australian Banks start mortgagee sales as the economy constricts.
We can’t let owner/occupier first time home buyers lose what they have worked for, it would generate a poverty loop that would mutilate an entire generation of home owners.
The speculators can all get smashed, but owner/occupiers must be shielded by the incoming shockwaves.
First time home buyers to become new political friction point as mortgagee sales set to soar.
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Unfortunately, first home buyers unable to access money have zero political clout and ergo are easily dismissed by sociopathic politicians. Kiwibank isn’t necessarily the greatest either, it’s just not off-shore owned, that’s all. David Seymour’s shocking promotion of Paula to Pharmac, should serve as a warning as to how some politicians will hit out at achieved people who stick their heads above the parapet and to whom they know they are inferior, in this instance, trained medical professionals. But the intelligence vacuum currently dominating the Beehive bodes badly for everybody except themselves and their mates. There may be other options rather than the banks, as there have been in the past, but again job security is crucial, and that also seems to be diminishing. National’s low income economy is yet another shafting of the undeserving poor, and tossing out pay equity blatant misogyny.
30 years of government policy making NZ a housing economy (with a few bulk commodity exports) is coming to its conclusion.
NZ doesn’t need to, nor can afford to, shield homeowners from house prices returning to 3 times average income. If you want NZ to return to a fairer and more equitable society, then stop propping up house prices, free up land supply, and let young people buy houses at prices their wages can afford.
Yes Ada, Bernard Hickey once joked that NZ doesnt have an economy, rather a housing market with a few bits tacked on. What the conclusion will be I can”t say for sure but surely it won’t end well for many.
Or increase the wages to match the housing prices!
Of course the house prices were ramped by having collectives of Chinese millionaires wanting a safe, stable, rule of law haven for their money. Investors of the world unite.
Ned Kelly knew how to deal with Aussie Bank mortgages. Burn!
Given the high prices of building materials, the pipe dream of “freeing up” more land will mean that the situation will remain the same.
first home owners will be thrown to the wolves and speculators and land lords will have their mortgages paid by the government .This will happen because we cant have the riff raff workers owning their own homes can we .
Do you own your own home Gordon?….depending on age, and you are in mid 40+….then why not?
If under 30, then you still have time, assuming you are employed of course.
If you DO own your own home, are you being a snowflake and taking offence on behalf of others?
I do own my own home as does one of my 3 kids .One of the boys lost his house due to being taken to the cleaners by his scabby ex who woke up one morning and realised she had borrowed and spent more than she had so it was easier to take everything and cleaned him out .
What I said was on the button just look at who are getting the tax breaks ,it is not first home buyers because if they were all buying their own homes who would be paying rent on Luxons 7 houses
I’m very confused by your comment. Are you suggesting that people whose foreign bank lenders own their homes ‘own their own homes’? Because if your home is subject to a mortgage, you don’t own your home. Even though we could very easily get to near 100% home ownership by cutting out the foreign bankers.
I’m right. It’s worse than it looks. Decent hardworking professionally qualified people now threatened with redundancy may lose their homes, due to funny little things called mortgages. Some may uproot and decamp, which would doubtless make dipsticks like you rejoice, but the country needs them much more than good people need you.
Economic performance,non performance,by the recent reckless Labour Government has made life even more difficult for first home buyers,something Labour supporters cannot admit to.
Right wing supporters won’t admit to Keys reckless immigration settings responsible for smashing out record high house prices of which it is now nearly impossible for first time buyers to purchase. Although it is not difficult for intelligent people to see this, the inept National government supporters cannot admit to it.
NSC once again you copy my theme,thank you for the flattery.
Thank you for confirming my comment, your lack of intellect is noted Bob the troll. If you knew who your mother was she’d be proud.
NSC you are a simple fellow.
How many houses,if I may ask do you own NSC?
6 homes Bob the fister and why admonish you for your stupidity.
Not true. I am happy to admit that Labour have also contributed to the lack of affordable housing by doing sweet FA when they had the opportunity – especially after the 2017 election when they had the numbers to rule alone (something National will never achieve – and of course, ACT and Winston First – well that is just hilarious). But, the Labour governments problem was that they continued along the neoliberal path that they started in the 1980’s, which doomed them to the same sort of tepid outcome for low to medium income earners, that several National administrations have more than feathered (1990-99 and JK’s 2008-2017) – neolib light – which was nearly as useless as the full blown model.
Ok Bob you make some good points with which I agree.
Labour were guilty of being too, old National. This new version of National is a lying disgrace. No one believes that idiot Luxon (and Willis) when he says their tax cuts are fully funded and they won’t rely on borrowing. That’s because it’s a lie, pure and simple. That’s irresponsible Bob
Given the rising price of home insurance, maybe the government should become the insurer of last resort – maybe even first resort.
Bring back the 4% Housing Corp mortgages. The only way to fix this.
Yes please
That requires subsidization by central Government. Are people going to be happy with that? I don’t know.
Well clearly no one is happy subsidising private charter schools. A corrupt practice.
We did that for about 40-odd years up to 1992, and no one had an issue with it. Also, The govenment still subsidizes housing costs via accomodation supplement, which is done way to thinly. You get absurdity of people getting $2 as an accomodation supplement, which is madness.
And hold all those accountable for neoliberalism destroying that accountable for their treason, and give them the appropriate traditional punishment.
cannibal capitalism starting nibbling at the middle class….
lesson? don’t vote nat they don’t love you they love their doners
This country requires a radical correction in house prices. The only question is, who suffers for it the most. Unfortunately for buyers in the last 5 years or so a blind frog could see that the ever increasing prices were unsustainable. So, if you leveraged yourself so heavily that you cannot weather a interest hike, i’m afraid you only have your greed to blame. Owner occupiers should have some sort of govt protection until interest rates come back to a decent level, All others should be left to burn.