tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Property predictions prompt anger

An article in this week’s Herald on Sunday, outlining Olly Newland’s claim that house prices will double in ten years, has prompted quite a lot of angry reaction.

Tuesday, July 31st 2012, 12:00AM 2 Comments

by The Landlord

The claim is supported by Auckland Property Investors Association president David Whitburn.

Readers were quick to jump on the article, saying the media is responsible for pushing up prices, that irresponsible reporting creates panic and that those making the claims are only trying to line their own pockets.

One respondent even said that Kiwi women, angry that all the country’s men have gone overseas to work because of high property prices, will shoot all of the country’s real estate agents.

I can’t see why articles like this prompt so much vitriol.

As Newland himself said, he’s made similar predictions several times over the past 50 years. Many times he's been proved correct, sometimes he hasn't.

Prices douibled last decade and to double again in ten years,  only have to rise by about 7 per cent a year. That seems more than achievable in Auckland at present, if not the rest of the country.

Many critics of the claims say it is impossible for Kiwis to service the kind of mortgages required on doubled house prices. But Newland says prices aren’t tied to income. Things such as immigration push them up, as well as the well-publicised housing shortage.

But while price rises are good news for investors, Newland is right that they aren’t good for the young people who are our next generation of taxpayers.

His suggestions of GST breaks or grants for first-time buyers, as in Australia, have merit.

It’s time we talked about house prices in a sensible way. Instead of pointing the finger at “greedy” baby boomers wanting top dollar for their investment properties, let’s discuss ways to get young people on to the property ladder.

Instead of desperately trying to keep prices low, let's focus on increasing our earnings. That way we can keep pace with these "foreigners" some seem so sure are responsible for our rising prices.

« Property investment a safe betThe Block: Show us the numbers »

Special Offers

Comments from our readers

On 31 July 2012 at 4:03 pm alttab said:
The baby boomers' children will inherit all this real estate. Eventually. The real "problem" if it can be called that, is increased longevity slowing down the transfer of inter generational wealth. One solution could be the mass creation of low-cost retirement villages, with access to the universal old-age pension linked to their post codes?
On 1 August 2012 at 9:57 am John Caldwell said:
I agree with the article, infact I predict there will be another boom with in the next 4-6 years.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com