Auckland House Prices

Raw feedback for John Key

Caution:? unedited feedback:

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Suggested Sabotage of Auckland house prices Socialist Shipwreck waiting to happen

en.wikipedia.org Shipwreck

en.wikipedia.org
Shipwreck

The Daily Blog currently has an article promoting the sabotage of Auckland house prices.They provide a link to a site that publishes both satirical and serious articles. It is hard to imagine that a call to force Auckland home owners into a mortgagee sale is a serious article.

Labour and the Greens should not be scared to support economist Arthur Grimes? call for policies to bring down Auckland house prices by 40%. We don?t need to support all his policy suggestions. But let?s recognise that a 40% drop would only bring the Auckland median house price (now around $820,000) down to what it was four years ago ($495,000). Why not aim for that?

How is hurting middle income and upper income families in Auckland who have managed to get a foot on the housing ladder going to help those who currently haven’t?

Let’s assume that those who currently cannot afford a $820,000 house in Auckland have saved a 20% deposit for a house worth approximately $500,000. With a ?deposit of $100,000 they are in a strong position to buy a property in every single town and city in New Zealand. They are in that position whether or not Auckland houses have their value sabotaged.

The most simple solution for those who want to own their own home is clearly to move out of Auckland. Market forces determine value and Auckland is very popular. If you want to live in Auckland you need to pay the price. If you are fortunate enough to own a house in Auckland you benefit ?from capital gain but you also pay high rates as a consequence. If you are a property investor who wants capital gain Auckland is the place to be. If ?if you want passive income from your investment property Auckland clearly is not the place to be. ?Landlords go where the returns are and people who want to own their own home need to do a cost benefit analysis. ?The lower costs associated with living outside of Auckland can result in a much better lifestyle. Towns like Tauranga still have excellent capital gain, 23.6% this year alone.

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“flee the city to provincial New Zealand”

Auckland is now in the top 10 of least affordable housing in the world, when the median income is compared against the median house price.

The average Auckland home is rising in value by nearly $300 a day more than what most workers earn in a 9-to-5 shift.

Newly released figures analysed by the Weekend Herald show the standard Auckland house added $427 a day in capital gain in the 12 months to September.

But Auckland workers earned just $132 a day, according to newly published median wage figures from Statistics New Zealand – meaning house-price growth is outstripping people’s earnings by $295 a day, or more than $100,000 a year.

The grim figures shed new light on the deteriorating affordability of Auckland housing, which has been labelled unsustainable by the Reserve Bank and at risk of a steep price reversal.

It would now take the average family nearly 10 years of household income to buy a median-priced $771,000 Auckland home – putting the city of sails squarely among the 10 most over-valued housing markets in the developed world.

Experts warn the situation is shutting a generation out of home ownership, forcing them to become perennial renters or to flee the city to provincial New Zealand in search of lower-cost housing.

Shows you the contempt that journalist Lane Nichols has for “provincial” New Zealand. ?Apparently you “flee”. ? Become an Auckland refugee even. ?? Read more »

Poll shows Labour’s and Twyford’s ugly legacy: the seed of distrust against Asians has found fertile soil

Digipoll did a poll for a newspaper, and it makes for ugly reading

Credit: Digipoll/A newspaper

Credit: Digipoll/A newspaper

Notice the extremely injurious way this poll was pitched. ?The real problem, according to commentators (and if borne out by still non-existent evidence), is the number or percentage of non-resident purchasers of property. ? But as you can clearly see, A newspaper has simply labelled everyone ‘a foreigner’. Read more »

Minister of Housing issues statement: I am not responsible for Auckland house prices

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Good grief. ?Has it come to this? ?Explaining is losing. ?Making excuses for something you aren’t even responsible for? ?That’s top grade losing.

Opposition parties are piling pressure onto Housing Minister Nick Smith after the average Auckland house value rose by $74,000 in just three months.

The Massey University report revealed the city’s 56 percent less affordable than the New Zealand average, and on track to get worse.

Labour and the Greens are placing the blame squarely on Dr Smith, but he says it’s not his fault. Read more »

Don’t live in Auckland? Then Aucklanders will come to you

After months of property price increases in the country’s largest city, new figures show that Aucklanders on the hunt for a house are now looking further afield.
Property listing website Realestate.co.nz says the average asking price for a house in Auckland last month was $800,000.

Chief executive Brendon Skipper said the website’s data also showed that there had been a huge leap in the last year in the number of Aucklanders looking at properties in the regions.

“In particular, they’re looking in the likes of Hawkes Bay, Waikato, Northland – so we thought it was interesting given … that house prices in Auckland have been going up quite steadily over the last six months.”

Hawke’s Bay attracted the most interest, with a 150 percent increase in views, but Manawatu-Whanganui, Waikato, Northland and Bay of Plenty were not far behind.

Spend some time looking into real estate agent windows, and you get a sense of what is?on the go in various parts of the North Island. ? Read more »

Key’s tax: Rushed, under-cooked, and won’t actually work

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John Key’s new partial CGT proposal is being dismissed by the very people it is supposed to bring into line

Auckland-based financial adviser Becky Bi said her clients, mostly from China, were investing for the long term and buying before prices rise further.

“I don’t think it will affect them at all because either their children will come to New Zealand to study here, and some of them [are] planning to migrate to New Zealand.”

Ms Bi said her clients were often attracted to New Zealand because it was easier to migrate here compared to the United States, Canada, and Australia.

John Shewan of Victoria University’s business school said excluding the family home from the tax changes meant they would not affect rising house prices.

“The real elephant in the room is family homes,” said Mr Shewan, a former chairman of PricewaterhouseCoopers.

“If you wanted to change house prices you should tax all homes including family homes.
“Now, nobody’s going to do that, or they wouldn’t survive as a politician.”

Stepping back a bit it concerns me that Key is now doing a Labour: making up policy on the trot – no detail, no wide party support, and getting shot down by media and public. ?Worse: ?by people in the industry that know better. Read more »

Len Brown positive about Auckland housing market going backwards at a slightly slower pace

Halfway through Auckland’s Housing Accord, housing targets are being met, but an increase in the region’s population has resulted in a deficit of thousands of properties.

In September 2013, the Government and council agreed to the accord with a target of consenting 39,000 new homes over three years.

Auckland Mayor Len Brown told TV3’s The Nation that “good progress” had been made.

“Not great or outstanding progress, but very good progress in terms of lifting that supply.”

New apartments accounted for 40 per cent of consents applied for in the first quarter of this year, he said.

“And we’re seeing that build going on in Auckland at around our metro centres with some real pace.

“So I’m not as pessimistic as that, I’m optimistic for the fact that the Auckland construction industry is building to this demand.”

But property investor and developer David Whitburn from Fuzo Property told The Nation the situation had got worse.

“Even with that housing accord there we haven’t seen that many houses built yet, there’s been a number of infrastructure challenges.”

There was really strong demand for houses, fuelled by a growing number of migrants to the city, he said.

All the Housing Accord did was clear some obstacles in the consent process. ?But then we saw the other day that only a 130-something affordable properties were completed…. in total. ?In the mean time, Auckland continues to be flooded with new migrants.

Auckland as a whole is sliding backwards with demand increasing and supply not even keeping the backlog in place.

But, according to Len we’re going backwards slower now, and thats…

good progress…?Not great or outstanding progress, but very good progress in terms of lifting that supply

Lifting supply? ?Where are the houses Len? ?Actual houses?

 

– NZ Herald

Repeat after me: There is no housing affordability crisis

As certain countries, and certain areas within countries become more economically successful, it becomes a more desirable place to live and work. ?More people want to go there. ?Pressure goes?on the amenities. ?Demand increases, and the prices go up.

To try and reverse that, you can do two things. ?One, is to increase supply. ?Unfortunately, in terms of housing, there are a number of very slowly reacting resources at work: ?land availability, and actually building the infrastructure and the houses. ?It is much easier to get a plane load of immigrants to arrive than it is to create a place for them to live.

As you can learn from overseas, places like Sydney, Toronto and London, you can slow down the problem, but you can not reverse it. ?The only way to reverse it, is to make the place a hell hole, so nobody wants to be there.

Once upon a time, on the back of the lucrative auto industry, major parts of the US were wealthy and desirable. ? Now, you can buy a house for a couple of hundred bucks.

Times are tough in Michigan, a point made clear when a home in Flint recently went on the market for a mere $188.

The house — located at 2518 Dakota Ave., off Michigan?s Route 59 — is 1,225 square feet, and sits on a lot measuring less than half an acre.?Built in 1928, it has two bedrooms and two bathrooms, the Detroit Free Press reported this week. ? Read more »

So What?

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“Property investors take 40pct of market” screamed the 3 News headline last night. ?My response: so what? ? What is so shameful about someone else owning the building and paying rent?

The Auckland Council’s website crashed this morning after too many people tried to view their new property valuations online.

Many homeowners will be delighted by rising property prices, but people trying to buy a first home won’t be so thrilled.

Auckland valuations are up an average of 29 percent from three years ago. Read more »

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