Compared to some other countries:
The Netherlands: €31.5k average household income, average house price €387k - so 12.3x.
UK: £31.4k average household income, average house price £274k - so 8.7x.
Average home prices in New Zealand reaches 8.8 times average household income
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Re: Average home prices in New Zealand reaches 8.8 times average household income
#12It annoys me when they compare countries and don't consider income tax - you don't pay with pre tax income... If you earn 150k in High Tax Euro Country you're losing 50% of that. In low tax US state you're closer to 33%. Thats the difference between 75k and 100k.
In high tax Euro country those 50% also include stuff like public health care, retirement and social security.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#13More importantly, mortgage payments have gone from 1/3 of income to 1/2. That's reaching unsustainable levels.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#14I live in NZ and my home has more than doubled in value over the last 5 years. The rapid increase in prices is scary.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#15Housing prices and income have a skewed distribution (more like a lognormal than a normal distribution); therefore the mean is higher than the median. What's the median home price and median income? Also, can the average household get a mortgage on these houses? Affordability is pretty much arbitrary and depends on the banks' lending criteria and interest rates (which depends on regulatory factors mostly). Edit: this…
'Affordability is pretty much arbitrary and depends on the banks' lending criteria and interest rates'
Well, we are at a point where significant % of the population will pass awat before they can pay off their mortgage
Re: Average home prices in New Zealand reaches 8.8 times average household income
#16So, if the average person can save 10% of their income, it takes 8.8 years to save a 10% down payment? Factor in tax and the time it takes to save a down payment is starting to look close to the time it took my parents’ generation to own a house free and clear.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#17More importantly, mortgage payments have gone from 1/3 of income to 1/2. That's reaching unsustainable levels.
That's not normal? I paid half my income to rent when living in London 10 years ago, and prices have only gone up since then.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#18More importantly, mortgage payments have gone from 1/3 of income to 1/2. That's reaching unsustainable levels.
That's not normal? I paid half my income to rent when living in London 10 years ago, and prices have only gone up since then.
I lived up North 10 years ago and my rent for a 2 bedroom house was £320 a month. It wasn't in bad area either.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#19It annoys me when they compare countries and don't consider income tax - you don't pay with pre tax income... If you earn 150k in High Tax Euro Country you're losing 50% of that. In low tax US state you're closer to 33%. Thats the difference between 75k and 100k.
But then you also have to consider what services are included in the tax that the lower tax rate might have to pay out of pocket.
> you also have to consider what services are included in the tax
Yes! And a lot more as well. Many are under the impression that income tax is the majority of their major tax burden.
Total taxation from billing to salary net + vat of normal spending. This must include all forms of employment, social fees, and other government imposed costs for the employer. This is higher than income tax for many regions and income brackets. On top of this should be added other taxes for a given lifestyle. E.g. fuel and vehicle taxes, property taxes, etc.
Then the services provided: health care, schooling, child care, child support, pensions, etc.
Things look a lot different when making a complete cost comparison between countries, and varies a lot depending on what is included as a "normal" lifestyle. E.g: couple with 2.2 children at median income looking at retirement at 70 vs a single high income earner looking to retire at 50... and ... so ... on ...
On top of that we can also include other living costs ... but we started somewhere at average house price vs annual family income?
Re: Average home prices in New Zealand reaches 8.8 times average household income
#20Compared to some other countries: The Netherlands: €31.5k average household income, average house price €387k - so 12.3x. UK: £31.4k average household income, average house price £274k - so 8.7x.
I see your housing bubble and raise you 18x in Prague, 16x in Brno: https://www.numbeo.com/property-investment/country_result.js...
Feels really unsustainable, I don't know how it can continue and I really feel for anyone here who's not earning tech-sector wages