As European - wow, that cheap?!
Though still with horseface management...
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
#32Compared 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.
The average house price in south east in UK is about 500K and the average salary in the same region is about 30K. This is more like ~17x.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#33The problem with New Zealand seems to be that if you have an education, it is often no where else to use that education than Auckland or Wellington. I have never been to New Zealand, but the problem seems to be very similar to the housing problems we have in Norway. The sub arctic capital city of Oslo, has ridiculously high prices.
Not true, I've been in Palmerston North scince getting my degree. There are always high skill Jobs going and not enough people willing to move here. Our house prices are very high as well.
> Palmerston North ... always high skill Jobs going and not enough people
? links to good job boards ?
I know several people (stem MSc / PhD)s who are on and off looking into migrating. They would come with around NZD 0.8-2.4M net capital from selling their current houses.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#34How have other countries dealt with that? In Norway, the cap you can borrow is 5x your income. This cap is total of all loans (student loans, mortgages, limit on your credit cards etc)
Not sure of the effect, but perhaps it has cooled it somewhat You notice certain "bands" on apartment prices. An apartment for a single person is capped at ~5x what a single person makes, then there is a gap until the next band etc. One problem is that normal people are capped, but someone with upper class parents can get help to win the bidding round by bidding just above what most people can. So it can feel unfair, at the same time one probably shouldn't be liable for that amount of loans as well. Dunno.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#35So, 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.
Most mortgages (At any reasonable %) will require more than 10% these days... you're looking at 20-25% in many cases.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#36It 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.
It annoys me when people don't realize that just because Euro States are taxing at 50%, it doesn't mean that the US is cheaper. We're paying for the services that Europeans take for granted while someone else makes a profit off of these services. The US is more expensive and US citizens are getting less for their money.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#37I live in NZ and my home has more than doubled in value over the last 5 years. The rapid increase in prices is scary.
Can you explain what the cause of this sharp rise is? The linked article has nothing on that. It even feels a bit alarming without much depth. And is anything being done?
In the Netherlands, many investors, big and small, are buying up houses to rent out. Airbnb renting was a part of this as well. Many local governments are now creating rules, like, you have to live in the house when you buy it. Also, some taxes for investors have increased a lot. What is happening in the last few months is that less investors have bought houses and more have been bought by people buying their first home. The sharp rise in prices has been more normalized.
Still, there is a shortage of housing and the low interest caused over-bidding by people in a rushed market. The result was that only investors and people which had financial support from their parents could buy houses. Of course somewhat to their own detriment with paying too much and having too big loans.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#38Similar or worse situation is here in Prague, Czechia, person working in Prague needs about ~16 yearly incomes to buy average home here, it's insane, see: https://www.idnes.cz/ekonomika/domaci/praha-byt-cena-bydleni... Also Czech National Bank just increased the base interest rate to 5.75% this week, you can imagine how expensive regular mortgage is currently.
it's household, not person income, which is consisting usually from 2+ people at least in Czechia
the problem with mortgages is that they should be heavily regulated long time ago requiring at least 20-30% first downpayment, cheap mortgages are just pushing prices for everyone including poor people, I'm glad for current regulation, but sadly it's way too late, my apartment in Prague also doubled value in last 5 years, which is insane.
I'm idiot, so I paid it in cash. I am also idiot, I could buy next apartment in cash again without being mortgage slave (I have savings roughly worth 40 m2 Prague flat currently), but nowadays mortgage slaves are preferred instead of people who can save their own money and stupid people happy with cheap mortgages don't realize these are just pushing prices up, instead with inaccessible mortgages prices would be much more stable and you would need to scrap money elsewhere but without greedy banks.
But there are good news, recently prices started to go down and need to be already cut, because they are even beyond of mortgage slaves already.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#39In Norway the median income is NOK 550 920,- and the average income is NOK 609 480,-. The average price for a home is NOK 4 483 328,-. So respectively 8,1 and 7,3 times.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#40Here is something I would like to get opinions on -- whether this is a valid historical viewpoint. Talking very macro here. We (the world) have spent the last 80 years in a period of relative prosperity, peace, and general building up of countries' (and people's) wealth and productivity. Currencies -- stores of value -- have not defaulted generally, and as everyone engaged in producing more over the last decades (rea…
Maybe that 80 years of wealth in bank accounts is largely just a bunch of bs. Money is just an abstract idea we all agree upon.
https://www.investopedia.com/terms/k/kondratieff-wave.asp
https://www.bridgewater.com/big-debt-crises/principles-for-n...