There is a pretty bloody silly leader on The Herald at the moment:
The piece reads:
Frustrated would-be first-home buyers will get a hand up as the Government moves to lift house price limits for KiwiSaver subsidies and low-deposit loans.
Housing Minister Nick Smith has told the Herald he will make an announcement this month about the house price and income caps for the Welcome Home scheme, which allows first-home buyers to get mortgages from selected banks with only a 10 per cent deposit. The changes are also expected to apply to KiwiSaver first-home deposit subsidies.
Both schemes are currently limited to single people earning up to $80,000 a year or couples on up to $120,000, and buying homes priced below $550,000 in Auckland, $450,000 in Hamilton, Tauranga, Wellington, Nelson, Christchurch and Queenstown, and $350,000 elsewhere. …
Rising NZ house prices fuel debt binge, and a hangover could be brewing
Surging household debt levels will create a lengthy debt hangover, potentially hitting growth for years to come, economists warn.
After several years of deleveraging in the aftermath of the global financial crisis as households reined in spending, New Zealand household debt levels, relative to incomes, have been climbing since late-2011. By March they had hit a fresh high, with household debt as a share of disposable income at 163 per cent.
The level has probably climbed further in the months since, with spending surging at a time of fairly flat income, driven by soaring house prices, cheap credit and a strong New Zealand dollar. …
Pathetic tinkering with loan limits does nothing realistic for first home buyers, but it does add more fuel to the debt fire. We need to actually build some affordable houses. If only there was a party that would do that…