Time to protect 1st time home buyers
The Economy is in for a very hard landing as 55% of mortgage holders walk off historically low interest rates onto far higher ones.
We are seeing this destruction of disposable income impact retailers and hospitality as everyone cuts costs to stay afloat.
Those with a mortgage are now spending 49% of their income just servicing that mortgage while the 4 main Australian Banks reap billion dollar profits.
As the economy heads towards the rocks – who should the Government bail out – home owners or the Banks?
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.
The Aussie Banks have done very well for themselves…
ANZ boasts $2.26 billion cash profit, but warns tough times ahead
ANZ New Zealand is boasting a $2.26 billion cash profit for the last 12 months to September 30, 2023 – but is warning of potential tough times ahead for some customers.
The news comes after last week BNZ posted a net annual record of more than $1.5 billion, and Westpac $963m.
Watching them drive Kiwis to the wall with mortgagee sales while they have made billion dollar profits is an obscenity.
This will become a political friction point.
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What about a gofundme for the homeowners: “Show compassion to [Insert name] who has dropped a $200k deposit on a 2 bed do-up drainage ditch and now faces negative equity. Please give generously to [Insert name]”?
No. There is no reason usurious banksters should be paid by donors, there is no reason they should be paid by anyone.
So every man woman and child paid $450 in exported bank profits. Why isn’t it part of the reserve bank governors mandate to stop this from occurring?
One of the advantages of having a state owned bank is that it can offer cheaper mortgages to stressed borrowers, even if it is not in its economic interest to do so.
However I can’t see this awful government agreeing to that since it would probably create problems for the Australian banks.
Protecting first home buyers is subsidising property investors in the same way that accommodation supplements subsidise property investors.
Sometimes you need to make a sacrifice for the greater good, and the sacrifice is not a whole generation of first home buyers, it is a portion of privileged first home buyers likely financed into ownership b the bank of mum and dad.
They will be fine. It is the people who work and want a home but can’t afford one, and renters who are held to ransom by unscrupulous landlords, that you should be concerned about.
And until house prices fall by at least 50% from current levels, or even better 70%, these young people are destined to head offshore to a country that offers more than wolverine tears.