NZ first in the world!

Written By: - Date published: 2:23 pm, January 15th, 2016 - 46 comments
Categories: housing - Tags: , , , ,

NZ. First in the world for domestic violence. And now for housing unaffordability…

housing-afforability

46 comments on “NZ first in the world!”

  1. Detrie 1

    This is what happens when you have a leader who is also a multi-millionaire / investor in his spare time. He sees rising prices as a good thing and something to be proud of…. And we know that violence is all to do with drug use too…

    All praise to Key and the National Party, for their wisdom and exulted leadership.

    • aerobubble 1.1

      Nz is very very rich. Water, soils, educated pop. Etc etc. In order to maintain an economy so far from markets the economy needed lots of fiscal interchange with the world, so to reflect the distance a risk premium was added to borrowing. This explains why during deflation the nz economy still has very high comparable borrowing rates, we have a record of rich, stability, and wealth sharing globally.
      It was then no surprise that a gate keeper to broking the currency to the world is now the pm. However as humans get better and better at putting themselves out of work while racking up profits, the imbecility of sharing wealth upwards is exposed.
      If only Key started to walk the talk, and back his PR spin of being nice to poorer nz.
      Unfortunately its not been imbued, rather the cult of the age neo lib misaligned wealth creation with personal ability rather than just crazy amounts of Arabian cheap fuel. The promise of a better society was stolen by the thatchites and hoarded as a personal status symbol of their brilliance. The growth of the financial sector, out of proportion, to the actual size or merit, was nothing short of growing new cult members to the ponsi scheme of the century.

      We have lots of money, but little small minded bigots in charge of it who would rather spend it in super yatchs, empty penthouses, than better global humanity, the planet or our collective endevour.

  2. Expat 2

    Not really surprising to read that, and it’s not like NZ has the most expensive housing in the world, it’s just the fact that the incomes are so low for so many, an inditement of the Nats economic policies and ideologies, low wages is a “drag” on the economy, using high unemployment as a mechanism to keep wages low.

  3. Tc 3

    Exactly as planned by the hollowmen, no cgt, unchecked speculation, residency for cash, flog off state housing stock, dont build enough new ones etc etc

    It doesnt help that thanks to the oligopoly in building supplies (fletchers,chh) the cost of building is a cosy cartel driven affair.

    Maybe this is what shonky meant when he said he wanted us to be the next ireland.

  4. Danhob 4

    It fits so well with all other NZ stats, poverty, violence, ignorant population massive inaquality. It’s a credit to John Key and his band of blind followers that we are now ranked number one in this category. The longer the hypnotised floc stay dazed, the more number one rankings we’l have. Key will be cheering from his home in Hawii

    • Expat 4.1

      Hi Danhob,
      “John Key and his band of blind followers”
      Maybe NZ needs a lot more optometrists (lol like that would help).

      These number one rankings are really new records that have been broken (mostly negative) , no other govt has stooped so low to receive so many (number one rankings)

  5. fisiani 5

    This is exactly what happens when councils do not permit developers to build the houses that people need. The multiple restrictions and petty rules on housing makes it hard to build affordable housing especially in Auckland. Every reform in housing regulation has been opposed by the Greens so they have a real cheek to even mention it. Auckland has to grow up literally. Apartments in inner cities and more land for growth. are needed
    Just checked the link. Typical Green bullshit. I should have known. Auckland is not New Zealand.

    • One Anonymous Bloke 5.1

      🙄

      Fitch are communists, probably.

      • Neil 5.1.1

        That’s a standard right wing response to something that don’t fit their agenda is to label them communists..

    • Neil 5.2

      The only bullshit round here emanates from your brain washed mind through your mouth.

    • Draco T Bastard 5.3

      This is exactly what happens when councils do not permit developers to build the houses that people need.

      The councils aren’t stopping people from building houses.

      Every reform in housing regulation has been opposed by the Greens so they have a real cheek to even mention it.

      You mean they oppose every reform that you support because that would actually make things worse.

      Apartments in inner cities and more land for growth

      And you show your ignorance yet again. Green policy:

      Housing developments should optimise land use, reduce car use and be built to sustainable building principles.

      So, yeah, I’d say that they do, as a matter of fact, support inner city apartment buildings and higher density in general. They don’t support more sprawl though as more sprawl is really bloody stupid because it costs more. Of course, because it costs more means that there’ll be higher profits for National’s rich mates.

    • ropata 5.4

      this is what happens when central government policy permits non resident overseas investors to buy up all the land and houses using untraceable fiat currency (laundered money, i.e. proceeds of crime) and is too chicken to use the proper legislative structures that every other government in the world uses. (CGT, LVT, restrictions on land banking & foreign buyers, or any other mechanism to restrain idiot speculators and market manipulators)

      another failure of the “free” market, but a victory for crony capitalism and the filthy rich 10% of nz. incidentally these are the same people who oppose the Auckland Unitary plan because it includes more density. fishy is either a NIMBY or a numpty who doesn’t care about the greater good

    • Hilarious – nothing to do with National running the country for three terms – it’s councils.

      • mac1 5.5.1

        For fisiani, having used the standard blaming others excuse, the proper solution then is to sack the Auckland council, having already been reformed by this National government, and appoint another autocratically selected kleptocracy.

        Fisiani, and Key, should remember Winston Churchill’s famous remark regarding democracy, that whilst it has its faults, it sure beats whatever comes in second place.

        As a whimsical by-line , I should record for posterity my first attempt at typing this- “Nztional”- for which I blame a second glass of epononymously named whisky.

        • Whispering Kate 5.5.1.1

          I agree, why is it the Government always have to blame everybody and everything else for what is currently happening under their watch. I would have thought with such a clever clogs of a money trader running the country the present government would have “amended any anomalies” that were currently in practice when they took over the treasury benches in 2008 and had the country humming by now. Especially as he was supposed to know everything financial that mattered – had accumulated such wealth that it was obvious he knew how to save and grow assets. What a bloody laugh – he keeps the wages so low that most people cannot even afford to get their rent paid each week. He has a distaste for children and allows them to live in uninhabitable homes and go to school hungry. Give us a break please and vote him and his cohorts out at the next election. And please Fizzi and others stop blaming Labour for the country’s plight, it’s becoming boring and you are being immature with no vision – if this Government can’t sort it out in its third term it doesn’t deserve the Treasury benches.

    • Keith 5.6

      Dear oh dear Fisiani, what utter bullshit. Even if coucil rules ceased to exist all that building more houses achieves under the current regime, ecouraged by the dumb arses in the National Party, is more fuel for investors to add to their stinking greedy “portfolios”, be it local or overseas!

      FIrst home buyers and in fact any poor bastard renting are and will be permanantly shut out until this greed is dealt to by way of tax or other major disincentive.

      It certainly isn’t the “Brigher Future” renting in the land of your birth!

  6. Neil 6

    Not only that New Zealand has reached the pinnacle of world number one in domestic violence, now New Zealand has become number one in the world for being the least affordable place to buy a house, relative to income. If this is the brighter future that Key & the national party told us we would get if they were elected back in, I would hate to see what they have in store for New Zealand should they win the next election.

  7. righy right 7

    this is the genius of john key high house prices are sign of how good the economy is new Zealand truly is a rock star economy new Zealand would be Greece without john key captaining the ship . here in gods own we have found the midas touch of the new economic para dime just like Hitler did john is delivering for new Zealand john key would rival the fuhrer in awesomeness

  8. Muttonbird 8

    These two firsts are linked.

    Housing unaffordability is indicative of a society under stress and so high alcohol consumption and violence ensue.

    NZ house prices a ‘catastrophic regulatory failure’

    Even the “shocked” Property Council have finally cottoned on to the the fact the current government has been found asleep at the wheel…

    http://www.radionz.co.nz/news/national/294184/nz-house-prices-a-'catastrophic-regulatory-failure

    • Rosemary McDonald 8.1

      Funny that. I was chatting with a couple of North Shore real estate agents just over a year ago who were saying exactly that….catastrophic regulatory failure.
      Despite the fact these two were rolling in an embarrassment of wealth, they were kind of hinting that the failure of the National Government to regulate to protect the interests of New Zealand buyers was criminal, and the perpetrators should be treated like the traitors they are.

      • sabine 8.1.1

        Guess what Rosemary, non of their children can actually afford a house in their neighbourhoods and they have finally realised that.

        A few of my customers are real estate agents, and that is the gist of the conversations, a. they can sell but not buy, b. they can’t buy in the first place, c. their children have to move away and they miss out on kids and grand kids, d. the neighbourhoods are changing and getting dangerous cause no one knows any one, and the renters only stay for a few month and the house sell every few month and it is just ‘not safe’ any more.

        Money is a nice comfort thing, until you don’t have enough. At the moment the comfortable middle class in Auckland is waking up to the fact that they are not quite as comfortable as they thought they were, they are waking up to the fact that infill, high density, urban zoning etc is all coming to their leafy suburbs and they don’t have enough cash to just up and move as they previously suggested to others.

        karma, circles, etc etc etc

      • BM 8.1.2

        If you read that correctly, they’re pointing the finger at the Auckland city council.

        “Decisions were made years ago to artificially constrain the availability of land and it’s the golden law of economics that when you, through regulation, constrain the supply of a commodity it drives the price up.”

        That’s a council issue, if Aucklanders want affordable housing they need to get rid of the current council and vote in people willing to fix the mess.

        .

    • Sacha 8.2

      “Even the ‘shocked’ Property Council have finally cottoned on to the the fact the current government has been found asleep at the wheel…”

      They get to proclaim (again) that the only problem is those nasty councils regulating sprawl according to worldwide urban planning expertise. And Labour go along with them now (thanks Mr Twyford).

      Let’s just ignore all the systemic financial incentives for overseas credit to flow into our residential housing ‘market’. Nothing to see there, move along. The PM has no blood on his manicured paws. Bankers are swell.

  9. Muttonbird 9

    And this from the Property Council’s own website…

    “Only last year at our event Prime Minister John Key highlighted the benefits of apartment living, which we agree with entirely. But at this rate, how can we expect to get young working couples in apartments when they’re selling for more than what you would pay for a decent 4-bedroom house in Los Angeles or the Gold Coast?

    Even the (I assume) very conservative Property Council is starting to put the boot into Dear Leader.

    http://www.propertynz.co.nz/index.php/news/cat/news_latest_block/post/fitch/

  10. Colonial Viper 10

    NZ houses least affordable in the world!

    Labour Government 2008 Edition

    Jan 21, 2008

    New Zealand has the least affordable houses in the world.

    It scores worst in an international survey of the world’s six most expensive housing markets, passing Australia for the first time.

    Demographia, an international survey business run by Hugh Pavletich of Christchurch and Wendell Cox of the United States, today issued its fourth annual report, showing New Zealand has slipped drastically on an international scale.

    The United States, Australia, Britain, Ireland, Canada and New Zealand were studied, and the results reveal NZ house hunters face the biggest gap between earnings and house prices.

    Wages are so low and house prices are so high that it takes 18 years and six months of a household’s entire annual income to pay for a home, Demographia found. That measure is based on median house prices compared to median wages.

    Let’s face reality here.

    Cullen and Clark leveraged the “wealth effect” from rapidly rising house prices during their entire term in power for their own benefit. And didn’t give a shit that workers on the minimum wage and the median wage were being totally locked out of home ownership.

    MPs from all sides of the House are profiting handsomely – tax free – from continuing increases in house prices in Auckland, Wellington and Christchurch.

    And note that Labour will never take measures to reduce the value of NZ houses to anything remotely affordable to a worker earning $60K pa, let alone someone on the minimum wage.

    • vto 10.1

      “And note that Labour will never take measures to reduce the value of NZ houses to anything remotely affordable to a worker earning $60K pa, let alone someone on the minimum wage.”

      Exactly.

      Time to give up on political parties… the ‘free market’ is about to do the job anyway ha ha

      • Colonial Viper 10.1.1

        That’s the way it looks to me.

      • linda 10.1.2

        i agree a lot of people are about to get wiped out its a bubble we were only few years behind the rest of the world property will return to a level supported by this economy and NZ incomes. sadly when the tide goes out its going to be ugly but those of us who weren’t greedy it will be time to get out the popcorn and say we told you so all round and of course NZ mortgages are recourse loans i guess the bankruptcy courts will be working over time. the thought of all those over leveraged nat voters going bust fills me with happiness

    • ropata 10.2

      Never say never. Cunliffe had some good policies for 2014.
      Who will be our Bernie Sanders/Jeremy Corbyn/Justin Trudeau?

    • Muttonbird 10.3

      #labourdidittoo

      • Scott M 10.4.1

        Another reason why National and Labour should just combine so that at next election we actually have a choice rather than the same old shit from the same old parties.

  11. Paul 11

    ‘All it takes for young people to get a foot on the Auckland property ladder is hard work, determination – and months-long domination of US music charts.’

    Are the Herald meaning to take the mickey?http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11574655

    • Paul 11.1

      Well, it seems to be the uber-wealthy from overseas can afford our housing.
      ‘Magnate’s island retreat’

      The article again seems to promote Ollie Wall of Graham Wall Real Estate, featured only the other day in their paper.
      Is the Herald following his facebook/twitter/instagram account?

      http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11574675

      Is this country being the escape ‘bolthole’ for the world’s wealthy in case real trouble goes down with climate change and/or the collapse of capitalism?

      This article would suggest so…….

      ‘Where your boss will be come the revolution: ‘Boltholes with airstrips’ in New Zealand that are being bought by world’s super-rich who want a hideout in case of ‘civil uprising’

      As world events threaten the comfortable lifestyles of the West’s super-rich they have begun buying up fabulous ‘bolt hole’ properties in the far-away safe haven of New Zealand.

      The world’s elite are snapping up properties in the tiny country, which they see as a shelter from the threat of terrorism, civil unrest and instabilities in the financial markets.
      Interest in pricey land and homes in the North and South Islands has soared in recent years following terrorist strikes and civil disobedience in North America, the UK and Europe.

      Financial experts attending the recent World Economic Forum in Davos this month revealed many wealthy hedge fund managers have already started planning escapes for themselves and their clients should life in the northern hemisphere descend into chaos.

      Robert Johnson, president of the Institute of New Economic Thinking, said: ‘I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway.’

      Pointing out that the gap between the rich and the poor was increasing even in wealthy countries, Mr Johnson added: ‘People need to know there are possibilities for their children – that they will have the same opportunity as anyone else.’

      Already, several billionaires have bought themselves homes in New Zealand.

      Russian industrial magnate Alexander Abramov, who lives in Moscow, has transformed a farm in Helena Bay, two-and-a-half hours north of Auckland, sparing no expense to build five homes on the land. The entire project – which included a warren of underground passages, to be used by staff, and its own power station in case of cuts – is thought to have cost £24 million, according the New Zealand Herald. But he isn’t planning on living there full time. Instead, two of the homes will be used as a luxury resort, with visitors about to travel to it by helicopter.

      American billionaire William Foley is one of several who have snapped up vineyards, buying Te Kairanga, in Martinborough, in 2011.

      Paypal co-founder Peter Thiel also has property in the country, as does Tony Malkin, whose family’s property portfolio includes the Empire State Building.’

      Read more

      http://www.dailymail.co.uk/news/article-2931325/Super-rich-buying-property-New-Zealand-bolthole-case-west-goes-meltdown.html

    • Sacha 11.2

      “Are the Herald meaning to take the mickey?”

      That’s Nippert slipping one past his editors. Heh.

  12. savenz 13

    Maybe someone should bother to work out, that wages are very low for locals, so now locals can’t afford to compete for our own houses.

    There is so much talk in the media about houses, but not much talk about Low wages!!!

    That’s more of a problem in my eyes or at least needs to be looked at in unison 50/50 with high house prices.

  13. Peter Lewis 14

    Town planners are trained at University.

    University academics hate Property Developers.

    So town planners then work in local councils and translate that hatred into trying in every way possible to block property developers.

    “Hey, success! We’ve got rid of all the property developers – Universal Homes, Beazley Homes, Keith Hay Homes – all gone. Those terrible developers were turning blocks of land into residential wastelands unfit for the watersnails, the pukeko and the kiwi to live in”.

    “What do you mean, there is a housing shortage? Nothing to do with us”.

    Without property developers you get no property development.
    Is that a hard concept to grasp?

    • Scott M 14.1

      As a town planner I can say “what a load of bollocks”.

      There is definitely some blame relating to the fact that urban limits were imposed without the corresponding changes being made to allow intensification to occur.

      But rampant immigration and poor bank lending practices share the Lions share of the blame IMO.

  14. Smilin 15

    Lazy money politics of JK a winner everytime who works these days anyway yeah right u fc Key

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