A news paper editorial was probably written by a bitter inner city lefty with a tinge of jealously.
This week the Reserve Bank released the sort of data on mortgage lending that we have not previously seen. It revealed banks have made three times as many loans to investors as they did to first-home buyers in the past year, and the average amount lent to investors was larger. The figures may not have surprised anyone who has attended house auctions in Auckland but they are hard evidence of what has undoubtedly been happening for a long time.
Nobody should listen any longer to the suggestion that all would be fine if Auckland’s house building matched its population growth. Certainly the city needs to increase its rate of new house building but when three houses out of four are being bought by investors in rental properties, it is going to take more than the country’s capacity to boost supply if New Zealand is again to give all young people a chance to own a home.
Would these be the same young people who have no qualms at all in dropping thousands of dollars on an OE and come home penniless and are now moaning about not being able to buy a house with no deposit because they pissed it away rooting them way around Europe? Read more »