Auckland Housing Affordability

[Walkerweir]

What are all your thoughts regarding housing affordability? How could Government intervene with property market successfully without adversely effecting housing throughout the rest of NZ?

[PTILoveYou]

My view is the government's hands are tied on this one.

Capitalism and markets are not something the government should interfere lightly.

Simple answer is you can't.

They could increase the LVR requirement for Auckland properties, this will slow the market down even further, but first home buyers will be shut out even more!

[Viking]

Well they can't to unaffordable as they are being sold and banks don't lend without reasonable security.
If ya don't earn enough then ya can't afford one. Go renting. Can't afford that then move to somewhere that is affordable and get a life.

[PC]

Capital gains tax is going to make everything cheap as chips.
Keeping my eye on some down Paritai drive - just have to beat HNZ to them!


(with his tongue in his cheek).

[Maccachic]

They could just tie sale price to inflation ie. after costs you can only add inflation on top - like trying rents to CPI.

Sorted your welcome.

[Perry]

John Key Reminds Aucklanders Of Property Risks
Hamish Rutherford
20/10/2014

John Key has cautioned Aucklanders against ignoring the risks of
property investment, tipping that in the coming years supply will
exceed demand. Today the Prime Minister faced questions over housing
affordability in New Zealand's largest city, as Auckland council
confirmed that council valuations had risen by an average of 34 per
cent since 2011. In some areas, values had risen by almost two thirds
over the period.

But Key warned that the situation had been driven by climbing land
prices and a lack of new supply. The Government has set up new special
housing areas which have seen 5000 new properties consented, and is
aiming to build 39,000 new homes in Auckland over the next three years
under its agreement with Auckland council signed earlier this year.

[flyernzl]

They could just tie sale price to inflation ie. after costs you can only add inflation on top - like trying rents to CPI.

So I'll sell you my place for the Government sanctioned price of 700K
But at the same time you must by my nice new stepladder for another 250K.

[Davo36]

Hands up those who think 39,000 houses will be built in the next 3 years in Auckland?

Or even the country?

I note also that they've been saying 'over the next 3 years' for well over a year now!!! i.e. it seems to be a continuously rolling 3 years... with aggregating house builds...

8 years after they started, when they might have managed to build them, they'll go "See we built them in 3 years!"

[elguapo]

They could just tie sale price to inflation ie. after costs you can only add inflation on top - like trying rents to CPI.

Sorted your welcome.

This has been tried time and again. New York, for example, has rent controls restricting apartment rents to well below what they would be otherwise. Rents for the keys to get into apartments are not restricted, so to get that $100/month apartment, you need to pay $4000/month for the keys.

NZ tried it with the wage and price freezes in the 80's.

[NomoneyNotalk]

I know someone who rents a granny flat for 250 dollar a week, and his daughter goes to the same school as my daughter. He only earns around 40k a year after tax, but still have some money left to save.

So if people lower their expectations, then it is affordable.

[elguapo]

My view is the government's hands are tied on this one.

Capitalism and markets are not something the government should interfere lightly.

Simple answer is you can't.

The property market is interfered with from top to bottom by government, everything from setting the price of finance to the supply of land to the supply of potential residents is regulated by government.

[Perry]

Factory Can Turn Out A New House In 12 Days
Hamish Mcnicol
5 Feb 2015

Houses built on a factory floor in only 12 days could save the country millions
of dollars, a Wellington company says. Matrix Homes officially opened its factory
at the old GM manufacturing site in Trentham yesterday.

The company, established last year, has designed and is building modular housing
at two-thirds the cost of traditional building methods. Managing director Sean Murrie
said the company was founded on a belief that New Zealanders paid millions more
than they should for housing.

[Frezzinghot]

this has to be the best way forward, for 1st home buyers hoping to enter the market. not flash but we need to start somewhere.

[flyernzl]

Problem is, nowadays most first home buyers refuse to settle for anything that is not flash.

[speights boy]

Problem is, nowadays most first home buyers refuse to settle for anything that is not flash.

Sometimes because those "non-flash" places are surrounded on all sides by ratbag tenants with apathetic landlords.