ok, I am pedandic, but they probably mean 'annual'.
That's a really funny comment.
Average home prices in New Zealand reaches 8.8 times average household income
91–100 of 172 posts
Re: Average home prices in New Zealand reaches 8.8 times average household income
#92Where I live (southern Germany), you cannot find a house under 600,000 EUR. The average net household income in Germany is around 43,000 EUR. That means that house prices here are over 16 times the average household income. Yupp, it's bad. My wife and I both have university degrees, we have good and secure jobs, and our net household income is above average. But we have generally accepted the fact that it is impossib…
Well… 100 km around Munich €600k brings one 3-4 room apartment with the size of ~100 square meters. No house under 1 million EUR and it gets more and more worse every year.
With rather average salaries and lots of borrowed money in the family we managed to get a mortgage from the bank for a super old house. Then a super surprise came in - there was no handyman or a company who wanted to work for less than 1000€ a day. Every free minute goes into renovation, even very promising side project was put on hold. I already mastered plastering. Thinking about getting electrician’s license, then I will make more than McKinsey consultants.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#93Earlier quoted context omitted.
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.
Until 9 years ago I was living in a 3 bed semi detached within commuting distance of Birmingham, near a trainline, monthly season ticket was £90 - mortgage was around £400 a month - interestingly, houses there are still relatively affordable.
Coventry is/was that cheap, the downside is you’re extremely likely not to make it home from the train station.
Hardly a reasonable trade off.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#94Earlier quoted context omitted.
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.
I'm not sure what field to look in exactly so here is a very broad search.
https://www.seek.co.nz/jobs-in-information-communication-tec...
We have Massey and plant and food research that often have more academic roles. You'll normally see a few pop up each year.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#95Earlier quoted context omitted.
Not many people can actually do that no
GP must think the maximum tax rate is reached at 5 million euro a year. In most Euro countries you're at 45% (combining both social security and income tax) at around 50k/year. Or actually close to 60% taxed if you count the 33% paid by the company in social security tax that is somewhat hidden to the employee.
https://en.m.wikipedia.org/wiki/Tax_rates_in_Europe#/media/F...
The average in Belgium is around 45k, in Germany 47k, France is ~40k. So aside from Belgium if by close to 60% you actually mean close to 50% then yeah you’re right…
Re: Average home prices in New Zealand reaches 8.8 times average household income
#96In NZ we have created a culture that obsesses with house prices. It's been this way since at least 2000, if not earlier. Many peoples retirements plans hinge on them being landlords or holding large amounts of property. The NZ share market is a joke. Pretty much any serious global company that started in NZ moves away from NZ without even entering our sharemarket. There are a few exceptions of course, but by and larg…
> Holding growth shares in US tech stocks will result in annual wealth taxes, even if you hold and never sell.
Can you explain this more?
Re: Average home prices in New Zealand reaches 8.8 times average household income
#97It 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.
It depends, if you’re earning 200k (or even 100+) private health insurance is probably quite a bit cheaper than ~10%. Obviously for an average person you’re probably right.
Re: Average home prices in New Zealand reaches 8.8 times average household income
#98So, 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.
This is assuming the priced don’t increase. In many places, the prices increase so fast your downpayment grows faster than your savings. Home value goes up 10%, from 1 million to 1.1 million, 20% downpayment goes up from $200k to $220k. If you’re saving under $1666 per mo, you’re actually further away than you were last year. In Vancouver, the average price is $1.36 million and it went up 21% in a year. For detached,…
The greater Vancouver area though is not 1.3M and a detached house is something not even taken in consideration in Europe.
I lived in Rome and having a yard meant you were loaded
Re: Average home prices in New Zealand reaches 8.8 times average household income
#99In 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.
Are you quoting average income per capita or household?
Re: Average home prices in New Zealand reaches 8.8 times average household income
#100Where I live (southern Germany), you cannot find a house under 600,000 EUR. The average net household income in Germany is around 43,000 EUR. That means that house prices here are over 16 times the average household income. Yupp, it's bad. My wife and I both have university degrees, we have good and secure jobs, and our net household income is above average. But we have generally accepted the fact that it is impossib…
It's pretty much the same for anything around the city of hamburg in the north and most of the time it's less about the houses and more about the land they sit on.
Building got more expensive but land even more so. 1.000 EUR/m² of land for adjacent cities are becoming the norm.
Most of my friends graduated from university with either a bachelor or a masters degree and only those who stand to inherit a sizable sum of money or their parents home are going to have houses. A 50k salary simply won't cut it. Most have given up on the dream entirely since 30+ years of debt is not something they can justify.
As a quick back of the envelop calculation:
Let's say you had a household income of 86k for two people (43k+43k) which translates to about 4550 EUR per month after taxes, health insurance and pension fund. Their cost of living on average (not including rent) in the hamburg area would be somewhere around the 1900 EUR mark, leaving about 2650 EUR per month. Since people need to save at least a little money, or go on vacation once in a while or repair their car or maybe they have kids it's probably generous to assume they could use 2000 EUR per month to pay off a house.
Let's say you'd get a house for 600k all inclusive and you had to take on 500k of debt. With a current interest of about 2.76% fixed for 20 years and paying off 2000 EUR per month, then after 20 years you'd still be at about 224k of debt and you'd have paid 203k in interest. Assuming the same interest thereafter it would take a total of 30 years and 10 months to pay the house off entirely. During that time larger repairs or renovations are likely needed which would most likely forbid to pay off more than 2000 EUR per month.
Now one could argue that people could find places for half as much in rural areas but then again, lots of professions won't find any jobs there and those that do often get paid way less. Somehow the situation saddens me. My parents bought a semi-detached house 20 years ago for 200k (which would be 264k today adjusting for inflation). Two identical semis in the same street got sold last year, each for more than 500k, so pretty much double the inflation adjusted prices albeit being 20 years older houses now.