Affordable – in your dreams

Written By: - Date published: 7:03 am, June 15th, 2015 - 69 comments
Categories: housing - Tags: , ,

Nick Smith, who Duncan Garner astutely characterised as “the cold-hearted politician”, is at it again:

Nick Smith defends ‘affordable’ homes

The Building and Housing Minister is defending the use of the word “affordable” for around 200 new Auckland homes. Nick Smith has announced a third of the 1000 apartments and townhouses being fast-tracked in the suburb of Hobsonville will be affordably priced. However, that price bracket has now ballooned from $485,000 to $550,000.

Mr Smith told TVNZ’s Q&A programme the properties are within reach. “If you’re on an average income in Auckland, and you’re a member of KiwiSaver for five years, you would have built up $35,000. The Government’s home start scheme gives you $20,000, that means you’ve got $55,000,” he says. “The Government’s welcome home loan scheme means they only need a 10 percent deposit.”

300 odd units “affordable” units will not even scratch the Auckland housing crisis, but never mind that. Those prices are not affordable to the average Kiwi. Let’s assume Smith’s best case, a deposit of $55,000 and a purchase price of $485,000. That’s a mortgage of $430,000.

The median income of an employed person is $863 after tax (median is more useful than mean which is inflated by huge top-end salaries). That’s $1,726 a fortnight.

Using the Sorted mortgage calculator a mortgage of $430,000 at 6% over a 30 year term has fortnightly payments of $1,189. That leaves $537 a fortnight, or $268.50 a week to live on. In this scenario mortgage repayments are 69% of net income. A figure of 40% is sometimes considered affordable in NZ, that’s high by international standards.

You can find a similar set of calculations by 3 News here.

Nick Smith reckons houses are affordable if they are “affordable to someone”. But even under the best assumptions an average house in NZ or one of Smith’s “affordable” houses in Auckland is not remotely affordable for the average paid worker. It takes more than one median income (secure for the next 30 years yeah right) to buy a house.

69 comments on “Affordable – in your dreams ”

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  1. One Anonymous Bloke 1
    15 June 2015 at 7:20 am

    Nick Smith belongs in front of a judge and jury articulating his feeble and self-serving defence to charges of human rights violations.

    • Brutus Iscariot 1.1
      15 June 2015 at 11:53 am

      You forgot to put in your usual spiel about Section 46 of the Crimes Act.

      • One Anonymous Bloke 1.1.1
        15 June 2015 at 12:03 pm

        I’m curious as to where you draw the line. Are you ok with Australia sending people to death camps, for example, or is that a step too far?

        Is there any human right that the National Party must respect, in your view?

  2. One Anonymous Bloke 2
    15 June 2015 at 7:35 am

    At least he’s been forced to suppress his urge to sell land he doesn’t own.

  3. vto 3
    15 June 2015 at 7:45 am

    The elephant in the room is the bank debt that has snuck so sneakily into our system that we think it is somehow normal..

    Ask yourself where our system would be if that disappeared in a puff…

    partake at your peril

    • One Anonymous Bloke 3.1
      15 June 2015 at 7:50 am

      We don’t have to ask ourselves – we can look at similar situations from history.

      • vto 3.1.1
        15 June 2015 at 8:00 am

        That’s right. It is surprising how willing people are to turn a blind eye to history and reality…. greeeeed – always the downfall.

        The banks rub their hands in glee in so-called boom times like this as they incrementally claw more money out of the people’s pockets and into their shareholders hands…

    • AsleepWhileWalking 3.2
      15 June 2015 at 8:46 am

      The confluence of potential black swans this year means a systemic issue sooner rather than later, and there are more swans landing on the lake every day.

  4. Charles 4
    15 June 2015 at 8:18 am

    Hobsonville wasn’t ever going to be the new Massey (it’s close, much less well heeled, suburban neighbour) of West Auckland. It never was, not even in 1990. So the idea that any government like a right wing government was going to build anything like “affordable”/egalitarian housing near there is a joke. Take a drive out to Westgate on the weekend, and have look. You’ll need to drive, because public… oops, I mean commuter transport… runs on retail peak hours. Who’s missing from the “affordable” picture Hmmm? It’s pretty “white”, and able-bodied, much like the Nth Shore – minus “Asian” people. How many of the affordable new houses are being built for wheelchair access?

    Last time I looked at the figures, Massey has the highest unemployment in West Auckland, the ethnic distibution is wide, the West in general fares badly, second only to South Auckland.*

    So the “average wage” as referred to in the statistics NZ site link above says $991 from wages or salary. 42.5% of Maori* in Auckland earn $20k per year or less. How’s those Treaty Obligations going for you, National? Not very close to $991pw, in fact, to rent a place in the West if you have a family, both parents would have to be working, or having their costs subsidised, at that income level. Not many extras are affordable.

    The point is these new houses aren’t for the “average” person.

    *I hate having to quote these rudimentary figures and facts because it gives the impression, by middle-class “lifestyle at all costs” standards, that poor people are deadbeats, Maori are “inherently poor”, and that the unemployed are criminals/worthless/on-the-out; and by comparison, all the whiter/wealthier shades in the West are evil overlords. The suggestion does not bear-up to the personal experience, that whenever I come into contact with people from the South or the West, they are the some of best people Auckland have to offer. Of course, I don’t voluntarily frequent the criminal set, so make of anecdote what you will.

  5. Liam 5
    15 June 2015 at 8:20 am

    What’s the average (median) income for an Aucklander though? That would be a better measure to the national median.

    • lprent 5.1
      15 June 2015 at 8:40 am

      Probably way less than you think. A cursory look at the stats http://stats.govt.nz/Census/2006CensusHomePage/QuickStats/AboutAPlace/SnapShot.aspx?type=ta&ParentID=1000002&tab=Income&id=2000007

      For people aged 15 years and over, the median income (half earn more, and half less, than this amount) in Auckland City is $28,100. This compares with a median of $24,400 for all of New Zealand.
      40.2 percent of people aged 15 years and over in Auckland City have an annual income of $20,000 or less, compared with 43.2 percent of people for New Zealand as a whole.
      In Auckland City, 25.2 percent of people aged 15 years and over have an annual income of more than $50,000, compared with 18.0 percent of people throughout New Zealand.

      • Phil 5.1.1
        15 June 2015 at 11:46 am

        That’s not the right metric either.

        Any calculation of home loan affordability will be based on household income, not an individual’s income.

        According to this article, the median Auckland household income is $76,500.
        http://tvnz.co.nz/national-news/census-data-shows-auckland-income-rise-5823255

        I don’t have time right now to look into the nitty-gritty of where all these numbers come from and how they’re being presented, but your $28.1k for individual income seems quite low by comparison.

        • lprent 5.1.1.1
          15 June 2015 at 1:28 pm

          The stats I was quoting are for everyone over the age of 15.

          People in work would be my bet for the difference. Once you drop out the enormous block of pensioners you get a big jump in median income values. You then get small shifts as you drop out other non-working groups.

          Typical news article – no links and not enough data to find out the source.

          • RRM 5.1.1.1.1
            15 June 2015 at 2:08 pm

            Should 15, 16 and 17-year-olds be able to afford mortgage repayments?

            There must be tens of thousands of kids in that age group in Auckland doing a few hours a week after school, and a full shift at the weekend, all at minimum wage.

            OF COURSE the median wage is going to be far too low to make mortgage repayments, if you take a median wage calculated including those kids.

            I wonder what the median income of 25 – 35 year-olds in Auckland is?

            Double that, and THEN you’ve got an accurate estimate of the house-buying power of first-home buying couples in Auckland.

            Anything else is just choosing figures to support an agenda…

            • One Anonymous Bloke 5.1.1.1.1.1
              15 June 2015 at 2:11 pm

              You should tell Nick Smith to calm down. Why is he wasting all this time (not to mention your hard-earned taxes) on a problem you’re in denial of?

            • lprent 5.1.1.1.1.2
              15 June 2015 at 8:04 pm

              Not really. If you actually read my comment rather than immediately polestroking your outrage….

              1. I said that it was the first accurate thing I laid my hands on with median incomes. Cursory means that to me. A dictionary could have told you that.
              2. The fact that the link for incomes says that it was quick stats.

              So when you have cleaned your hands, how about doing something useful rather than whining that someone else did some useful work. Don’t wonder – do some work for a change

              Dig up some more detailed median income stats by region and work status. It will still show that in Auckland that Nick Smith is just a liar with numbers…

              This effort may help to allay the impression that you can’t do anything else with your hands than soft soap Smith…

  6. Janice 6
    15 June 2015 at 8:34 am

    How “affordable” is about 2,000 extra vehicles daily on the already overloaded North Western Motorway?

    • maui 6.1
      15 June 2015 at 11:43 am

      Not affordable in terms of the time wasted commuting and the loss of productivity, let alone the climate.

  7. saveNZ 7
    15 June 2015 at 8:55 am

    Someone is dreaming if they think that $550k is affordable for someone on average local wages.

    I would think more like $350k is what is affordable.

    A few years ago you could get a lot of family houses for that price around Auckland.

    The measures trickling in, should have been put in, 5 years ago.

    Quite a few renovated houses now entering the market, with “change of mind” as the catch phrase, as they were purchased months ago and now on for hundreds of thousands more.

    Agree with the transport issues, especially on the Western Motorway. Unbelievable they are putting up these housing estates, spending millions on the motorway while blocking public transport on that route.

    Ideology gone insane.

    • infused 7.1
      15 June 2015 at 12:15 pm

      Still many houses that price around… just need to… wait for it…

      move out of Auckland

      • One Anonymous Bloke 7.1.1
        15 June 2015 at 12:21 pm

        Yes, of course, only highly waged people should live in Auckland. What a great idea.

        • Capn Insano 7.1.1.1
          15 June 2015 at 12:25 pm

          +1
          I was going to say something about wanting to stick around friends/family and not having to uproot and find a new job etc but that response is straight to the point.

        • Dave 7.1.1.2
          15 June 2015 at 12:52 pm

          People moving out of Auckland and stimulating the regions is a good idea and something that should have incentives, but it needs to be a wide cross section of the earning population, not like infused thinks, that Auckland should be a nice big gated community that’ll open the gates in the morning to let the poor brown people in to clean up.

          • One Anonymous Bloke 7.1.1.2.1
            15 June 2015 at 1:07 pm

            Oh. I thought they meant that all the low-waged workers would be getting massive pay rises. I suppose you’re probably right, though 😉

      • Tracey 7.1.2
        15 June 2015 at 1:03 pm

        can you name the banks that will lend to people outside Auckland without jobs?

        • You_Fool 7.1.2.1
          16 June 2015 at 8:50 am

          or name the government schemes to stimulate job creation outside auckland / incentivise people to move to the regions? Additional cash payment, bigger kiwisaver contribution for first home buying? Business tax credits for operating outside auckland? Not closing down governmental services in the regions?

          • Tracey 7.1.2.1.1
            16 June 2015 at 8:52 am

            Exactly, can name the schemes which moved to regions and a re now being moved to Auckland. The cat seems to have the tongue of our clever friend above.

      • dv 7.1.3
        15 June 2015 at 1:10 pm

        SoInfused who are going to do all the low paid jobs eg- cleaning, rest homes,

  8. te reo putake 8
    15 June 2015 at 9:03 am

    This is an excellent response to Aussie Treasurer Joe Hockey, who said that “If you’ve got a good job and it pays good money and you have security in relation to that job, then you can go to the bank and you can borrow money and that’s readily affordable.”

    http://www.smh.com.au/federal-politics/political-news/working-mother-mel-wilson-gives-joe-hockey-a-lesson-about-house-prices-20150612-ghm7b6

    • Draco T Bastard 8.1
      15 June 2015 at 9:34 am

      “I’m just very tired of politicians making really uneducated and quite insulting comments targeted at average Australians,” she said.

      “They’re uninformed about what it’s like to be an average Australian.”

      And that pretty much applies to NZ politicians as well.

  9. dv 9
    15 June 2015 at 9:04 am

    AND over the 30 years the bank gets about half a million in interest!!!!

    • Draco T Bastard 9.1
      15 June 2015 at 9:35 am

      And that’s the true kicker right there. The usury of the banking system.

  10. Lanthanide 10
    15 June 2015 at 9:09 am

    Small quibble, in that Smith’s figures are for a *couple* earning the average *household* income. Requiring both partners to be working and between them earning the average household income, *both* in Kiwisaver for 5 years. There will be an awful lot of families that simply don’t meet those hurdles.

    • r0b 10.1
      15 June 2015 at 11:20 am

      Thanks for that clarification – it wasn’t obvious from the summary I was working from.

    • Capn Insano 10.2
      15 June 2015 at 12:28 pm

      good point. I remember that Nick Smith twatted on recently about the ‘average’ couple being on 50k each. Aside from, again, the nonsense about using average figures he also makes the assumption that both partners would be earning that much, isn’t a difference much more likely?

      • Lanthanide 10.2.1
        15 June 2015 at 12:54 pm

        I’d say the majority of male-female married couples in their 30s have children, or are just about to have children. These are the people that make up the bulk of the first-time home buyer demographic.

        In many of these families, one of the pair will be working part-time so that they can be around for their children. This instantly means they’re highly unlikely to be making the $50k average which is based on a full-time wage.

  11. Kiwiri 11
    15 June 2015 at 9:49 am

    *Brilliant* arms-length, or rather dead whole body-length, distance from the PM:

    “Prime Minister John Key said he had not seen the plans …”

    /sarc

    (from the link as pointed out, i.e. http://www.stuff.co.nz/national/politics/68753453e/housing-minister-nick-smith-all-houses-are-affordable-to-someone)

    How many more of these eye-rollingly awful excuses has the PM got in his bag of lousy tricks?

  12. DH 12
    15 June 2015 at 10:45 am

    Note there that Smith is talking about average incomes versus lowest prices. His own argument says that people earning below average can’t buy a house and since the average is above the median he’s admitting over half of Aucklanders can’t buy a house.

    Btw Anthony your link says $991 is before tax and it’s also the average rather than the median.

    Median weekly income from wages and salaries is $863 and with straight tax that’s $730 per week. After paying $594 on the mortgage they’d have $136 left…. about enough to pay rates & insurance.

    The welcome home scheme is a farce btw. I sat in on an application for a mortgage and the bank (Westpac) wouldn’t lend on a 10% deposit to someone who qualified for it. They’d lend on 20% but 10%…. nope not even for a smaller mortgage.

    • r0b 12.1
      15 June 2015 at 11:19 am

      Thanks for picking that up (me squinting at the wrong row of the table too late at night!). Fixed the figures in the post.

    • Lanthanide 12.2
      15 June 2015 at 11:22 am

      “The welcome home scheme is a farce btw. I sat in on an application for a mortgage and the bank (Westpac) wouldn’t lend on a 10% deposit to someone who qualified for it. They’d lend on 20% but 10%…. nope not even for a smaller mortgage.”

      It’s a scheme, not a guarantee.

      I expect the banks are perfectly fine with 10% deposits in Auckland, since values are going up so quickly. But in flat markets, probably 10% is just too risky for them. This makes further sense if you consider Auckland is where people are going to have the hardest time saving a deposit, so even getting to 10% is a big achievement, but managing 10% elsewhere in the country may just be seen as “someone who can’t be bothered / lives a lavish lifestyle”. Of course I don’t know the area you’re talking about that Westpac wouldn’t lend, but I do suspect it wasn’t Auckland.

      • RRM 12.2.1
        15 June 2015 at 1:40 pm

        We had no problem obtaining a 90% mortgage in Wellington 2.5 years ago!

        We just re-fixed for 2 more years, current bank has upped our property value such that in theory we have 20% equity now. Bank “B” which we also considered were happy to take us in the basis of about 14% equity.

      • DH 12.2.2
        15 June 2015 at 5:49 pm

        Y’know it doesn’t take much to Google “Welcome Home Scheme NZ” before commenting on it.

        Here…..

        http://www.hnzc.co.nz/buying-a-house/welcome-home-loan

        • Lanthanide 12.2.2.1
          15 June 2015 at 7:43 pm

          Not sure what your point is:
          “You will need to meet the lender’s specific lending criteria.”

          Quite clearly, it is a scheme, not a guarantee.

          • DH 12.2.2.1.1
            15 June 2015 at 9:48 pm

            I’m not sure what your point is. I said in clearly legible typeface it was a scheme, I made no comments about a guarantee, so I don’t know what you’re babbling about.

            It’s a farce because a scheme that doesn’t deliver what was expressed or intended is a waste of time and misleading to boot.

            • Lanthanide 12.2.2.1.1.1
              16 June 2015 at 8:16 am

              “It’s a farce because a scheme that doesn’t deliver what was expressed or intended is a waste of time and misleading to boot.”

              So you are saying that 0 people have successfully used the scheme to purchase a house?

              Or are you saying that it’s worthless just because the people *you* know couldn’t use it? Pretty small worldview you have there.

  13. Molly 13
    15 June 2015 at 11:05 am

    Mentioned this as a possible innovation before, but remains relevant to conversations about the provision of housing for NZers going into the future.

    An alternative to selling off state homes to private developers.

    Develop enclaves of mixed housing, on current HNZ land. For a brief look at how well designed medium-high density can be achieved, have a look at some of the cohousing developments have taken place in Australia.

    Mixed refers to the development outcomes rather than density, ie. number of houses sold, the number retained by the state for HNZ rentals, and the number privately rented by the cohousing trust. Some of those houses sold can be at market rent, others could be at a perpetual reduced cost – ie. if they are bought at 80% market value, then the buyer can only ask that as a maximum when they decide to sell. Unit titles can be used for this, with individual ownership of unit titles including a share in the unit title for common areas.

    This approach encourages a mixture of economic and social types to live together. In practice, this improves the long-term outcome and connectiveness of the community – as observations in Denmark testify.

    Ensure that the majority of the community is owned by those that live there, ie. Only up to 49% is retained by HNZ, or have a proviso that decisions that impact on the community need to be supported by a 70-80%.

    This eliminates the ease of HNZ sales for any successive government, which will have to consult with each and every one of those communities to sell stock.

    If we have unlivable housing stock on large sections in large collective areas, then we have the potential to regenerate those areas while replacing old housing stock, and providing new affordable homes. Funding comes in part from the value of the land, the involvement and commitment of the purchasers of the houses available to purchase (for their own residential use) and the facilitation of a government loan, and development support service that will take each and every community up to the position where they can get a mortgage from our very own Kiwibank.

    The alignment of cohousing development with traditional Māori and Pasifika values is very high, and would be a coherent response to the paucity of Te Ao Māori in urban residential design.

    Even an allocation of 2% of housing affordability programmes, would allow this scheme to be trialled and refined.

    NZ has an emergent problem with housing, one that cannot be resolved with continued build, use then sell cycles.

  14. Capn Insano 14
    15 June 2015 at 11:47 am

    I was glad to see you put up median income figures in response to the mean figures these National pricks are so fond of using. I’m roughly on that median figure as gross income before tax. I don’t consider these prices to be in the realms of affordability. I’m paying off a car plus the insurance and the other usual living costs, certainly not what I’d consider extravagant.
    Nick Smith still has his head up his arse so much that he can check whether he needs to floss from the inside.

  15. Tracey 15
    15 June 2015 at 12:13 pm

    “300 odd units “affordable” units will not even scratch the Auckland housing crisis, ”

    This is going to be a problem for them when arguing the iwi/right to buy case IF they need to rely on a definition of social housing. I note Smith is already using it interchangeably with “affordable”. Only problem is that “affordable” isn’t in the legislation “social housing” is and it has (I suggest a very different meaning).

    Mostly the Court will look to how “social housing” has been interpreted in NZ and represented throughout our history and legislation.

  16. RRM 16
    15 June 2015 at 1:21 pm

    How do you propose the government might make Auckland housing more affordable?

    Bearing in mind that the current market prices reflect the existing supply of houses that is available and what the existing pool of buyers is willing to pay.

    • One Anonymous Bloke 16.1
      15 June 2015 at 1:26 pm

      Do you actually read any of the myriad threads and comments on that very subject in this very forum?

      Short attention span? Comprehension issues? Or simple malice and bad faith?

      • RRM 16.1.1
        15 June 2015 at 1:35 pm

        I just Trademe searched houses, townhouses and units (NOT Apartments) in Auckland, 1-2 bedrooms, $300,000 or less, and there were 120 results.

        Fortnightly payments on a mortgage of ($300,000 – $55,000 = $245,000) over 30 years at 6% is $677 per fortnight… that’s a bit more affordable!

        Nick Smith is obviously putting his foot in it trying to defend this Hobsonville Development as “affordable housing” such as first home buyers might consider, but CLEARLY affordable first homes ARE out there.

        You just have to be willing to participate in the gentrification of Mt Wellington or Manurewa.

        Them’s the breaks… 😉

        • One Anonymous Bloke 16.1.1.1
          15 June 2015 at 1:41 pm

          Meanwhile, on Earth, the government and Reserve Bank are trying to figure out what to do about the housing crisis in Auckland.

          Or rather, the Reserve Bank is trying to fix the housing crisis, and the bought government is trying to look as though it wants to fix the housing crisis.

          • RRM 16.1.1.1.1
            15 June 2015 at 1:48 pm

            That wasn’t the question, genius.

            I asked the author of this thread what HE thought the Govt should do.

            Thank you for your concern.

            • One Anonymous Bloke 16.1.1.1.1.1
              15 June 2015 at 1:56 pm

              Just pointing out that people with more influence (not to mention braincells) than you seem to have decided there’s a problem.

              • RRM …
                15 June 2015 at 2:11 pm

                People with more influence [and brain cells] than me appear to want their constituents to believe they are concerned about the problem. There’s a difference…

                • One Anonymous Bloke …
                  15 June 2015 at 2:13 pm

                  Wheeler has constituents? Where do you get these fascinating shiny new facts from?

                  • RRM …
                    15 June 2015 at 2:40 pm

                    FFS.

                    I said “the government.”

                    You said “the government.”

                    The Government has constituents.

                    I have to ask… do you have a job? Or are you just on here all day, every day, practising your bait and switch non sequiturs?

                    • One Anonymous Bloke …
                      15 June 2015 at 3:55 pm

                      I said “the government and Reserve Bank“, by way of an illustration of the fact that you’re in denial of the problem.

                      So why don’t you buy a table at Cabinet Club and pay for your own government policy if you hate this one so much?

            • r0b 16.1.1.1.1.2
              15 June 2015 at 3:48 pm

              RRM – since you’re asking me, I think the govt should
              (1) introduce a broad CGT and cut tax breaks on property speculation
              (2) ensure that overseas investors must build a new house rather than buy an existing one
              (3) improve the support available to first-time home buyers
              (4) encourage “densification” as per:
              http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11464798

              What they are currently doing is cosmetic fiddling round the edges.

              • RRM …
                15 June 2015 at 4:48 pm

                Excellent, thank you.

                (1) I totally support, it is ridiculous the way many on the right complain about how little investment in business there is in NZ, while in the same breath defending the special tax-free status of buying, selling and running rental property (if you do it right.) Why would you put money into anything else when houses are, well, as safe as houses?

                What does (3) actually mean though?
                When we bought our house, we narrowly missed qualifying for a free $5,000 from housing NZ.. I thought that seemed pretty generous of my fellow taxpayers to stump up $5k to help me buy myself an appreciating asset?

        • DH 16.1.1.2
          15 June 2015 at 6:01 pm

          “I just Trademe searched houses, townhouses and units (NOT Apartments) in Auckland, 1-2 bedrooms, $300,000 or less, and there were 120 results. ”

          You people who quote Trademe need to learn how to use it, you just look foolish.

          Try actually reading some of the listings you found. I filtered your search further by cutting out the dross below $150k which won’t be relevant.

          House, Townhouse, Unit, 1 – 2 bedrooms, $150,000 – $300,000

          That reduced your 120 results to 77. Then you need to filter out all the deceitful agents insertions for auctions, price by negotiation… then filter leasehold & then wrong category or area and so on… until you reach pretty much a big fat zero.

          • RRM 16.1.1.2.1
            15 June 2015 at 7:24 pm

            “Wrong area”

            Oh ok you got me, there aren’t many $300k houses in Takapuna or Herne Bay. My bad.

            • DH 16.1.1.2.1.1
              15 June 2015 at 9:37 pm

              “Oh ok you got me, there aren’t many $300k houses in Takapuna or Herne Bay. My bad.”

              You’re just making yourself look even more foolish. If you’d looked even at the first page of search results you would have discovered the search included houses from outside Auckland… like Wellsford. Your Trademe search also found propeties in Waiheke, Rakino Island, Great Barrier Island and other unsuitable areas.

              Stop digging… you’ll only get yourself in deeper. Go try again and show us where these sub $300k houses are in Auckland.

        • Wayne 16.1.1.3
          15 June 2015 at 10:42 pm

          My first home was in Manurewa, near James Cook High. Seemed OK to me to get a start. And I am pretty sure quite a few of the houses in that area will be under $500,000. But unlikely to be much less than $400,000.

      • RRM 16.1.2
        15 June 2015 at 1:46 pm

        “Short attention span? Comprehension issues? Or simple malice and bad faith?”

        For YOU, oab, I’ll say bad faith.

        Buying a house isn’t easy. People scrimp and save for years to get a deposit together. People work out how much they can afford to spend, and then they go looking at houses in areas they can afford.
        And then the REAL scrimping and saving begins, once the mortgage repayments start going out, AND the insurance premiums, AND the quarterly council rates bills, AND the maintenance issues that you suddenly can’t just call the landlord about, they are YOUR problem and yours alone.

        So when I see yet another article about how flash new townhouses in nice areas AREN’T AFFORDABLE TO FIRST HOME BUYERS I just think; cry me a river.

        • One Anonymous Bloke 16.1.2.1
          15 June 2015 at 1:54 pm

          You’d better get onto the government then, and tell them to stop wasting your hard-earned tax dollars trying to fix this problem you deny.

          Perhaps buy a table at Cabinet Club. I’m sure they’ll listen to you.

          • You_Fool 16.1.2.1.1
            16 June 2015 at 10:39 am

            Actually it seems that RRM should go complain to the government who are calling these nice shiny new townhouses nice areas as affordable when they are clearly not… If the government wants to call things affordable when they are not then it is anyones right to point this out and to also suggest how to make it better (which is what is happening mostly in this thread)

  17. Colonial Rawshark 17
    15 June 2015 at 5:54 pm

    Four to five times household income is the limit for housing to be considered “affordable.” After that, housing becomes increasingly “unaffordable.” In Auckland I suggest that “affordable” for those privileged to be working decent full time jobs, is in the $300K to $400K range.

    Of course, with the political parties we have now, that’s never going to happen.

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  • Anzac Commemorative Address – NZ National Service, Chunuk Bair
    Distinguished guests -   It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders.   Our presence here and at the other special spaces of Gallipoli is made ...
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    1 hour ago

  • Anzac Commemorative Address – Dawn Service, Gallipoli, Türkiye
    Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia.   Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
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    7 hours ago

  • PM announces changes to portfolios
    Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • New catch limits for unique fishery areas
    Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Minister welcomes hydrogen milestone
    Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Urgent changes to system through first RMA Amendment Bill
    The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
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    2 days ago

  • Overseas decommissioning models considered
    Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
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    2 days ago

  • Release of North Island Severe Weather Event Inquiry
    Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Justice Minister to attend Human Rights Council
    Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order.  “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
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    3 days ago

  • Patterson reopens world’s largest wool scouring facility
    Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024
    Hon Andrew Bayly, Minister for Small Business and Manufacturing  At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin    Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho    Good Afternoon and thank you for inviting me to open your summit today.    I am delighted ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Government to introduce revised Three Strikes law
    The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • New diplomatic appointments
    Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions.   “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says.    “I am pleased to announce the appointment of these senior diplomats from the ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Humanitarian support for Ethiopia and Somalia
    New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today.   “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
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    3 days ago

  • Arts Minister congratulates Mataaho Collective
    Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale.  “It is good ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Supporting better financial outcomes for Kiwis
    The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Trade relationship with China remains strong
    “China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says.   Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
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    6 days ago

  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
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    1 week ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
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    1 week ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
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    1 week ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
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    1 week ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
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    1 week ago

  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    1 week ago

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