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Interesting perspective on house price affordability

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  • Interesting perspective on house price affordability

    Ashley Church can string a sentence or two together and his piece on home affordability or more accurately mortgage affordability is worth the read.

    His point of view is there's been little change in affordability in years. I.e. lower interest rates = less mortgage rate interest = cost of servicing about the same.

    No need for an artificially controlled price drop. Let the markets do their thing and consumers will as they have always done - change their behaviour.

    My 2 cents worth...

    Agree with his sentiment. Smaller homes are now the trend - out with the McMansion new builds on tiny sections. In with the 150 sqm 3 bed, with some outdoor space. The floor plan is really important - no need for the huge entrance hall, but add in a laundry. The washing machine and dryer stuffed in a cupboard had to be a male's idea.

    cheers,

    Donna


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  • #2
    I'll have to disagree with Ashley on this one.

    ​​​​​​The cost of a new builds are going through the roof.

    Developers spending in excess of 1million on a 607sqm site in working class suburbs of South Auckland lock FHB out.

    Add to this more regulations towards home ownership of higher LVRS , Bank imposed DTIs and international sky rocketing house prices caused by the same institutions that caused the artificially inflated house prices through the lower cost of borrowing.

    Remember these same institutions that control our lives are no more intelligent than you or I , they are only human and humans make bad mistakes, they believe they are solving a problem but lack the capability to understand they are only making the situation far worse.

    You will find New Zealand will become a genuine class system, I have prepared well in advance for these upcoming changes as "The new normal"

    Over the coming decade, achieving home ownership with out inheritance will consist of

    Highly intelligent well educated individuals (not doable by everyone)

    Self employed which will require many years of hard work 7 day week's, and because you can't borrow working capital against a house you don't own this will stall your journey to prosperity and early retirement.

    New Zealand will become a nation of renter's whether we like it or not, caused by the very people who tried to protect our economy.

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    • #3
      Nicely put Jeffa
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      • #4
        Originally posted by donna View Post

        No need for an artificially controlled price drop. Let the markets do their thing ....

        cheers,

        Donna

        I thought the whole market was artificial in price?

        (With the asset price inflation being caused by the Central banks dumping loads cash into the system).

        Ps , Check Ashly Church's work history, he's anything but an impartial information source.

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        • #5
          I wish I owned property in Sydney, makes Auckland look cheap.
          How can this be ? They have a capital gains tax.


          From the SMH today....

          Sydney’s median auction house price has soared to a record $1.92 million, up an astounding 32.3 per cent over the year and 11.8 per cent in just one month.

          Australians continued to buy property under the hammer at record rates during August, according to the latest Domain Auction Report Card, despite the protracted lockdowns in its two biggest capital city markets.

          In the depths of lockdown — and winter — Sydney’s clearance rate of 77.3 per cent was the highest for the month of August since Domain records began.

          The median auction price for units hit $1,113,000, also a record high.

          “It’s phenomenal. For some buyers, lockdowns aren’t deterring,” said Domain chief of research and economics Nicola Powell.

          “The fact is, lockdowns or not, some people still need to buy; they could be in between houses, they could have missed out earlier in the year, and now they’re ploughing ahead and making a strong offer.”

          Sydney’s strong clearance rate was largely supported by the fact that there were fewer properties on the market while buyer demand remained high.

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          • #6
            Let that be a lesson for our Govt. They can not control the market let alone even influence it for a meaningful period.

            cheers

            Donna
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