So whats the deal. Many are crying foul and anger over aucklands extremely high and increasing house prices , averaging 10% annual increase for over a decade . Compared to the low inflation of NZ around 2% as measured by the CPI putting the average house price close to $800,000 currently (July 2015). Putting that out of reach of most kiwis and resident wage earners.
The NZ Labour party has caused a stink with its claims its chinese buyers causing it, the assumption being they are foreign based on anecdotal data from a single real estate firm. Not the most reliable data but it has highlighted the issue of Aucklands super expensive houses. Labour have called for a foreign buyers register and thats been rejected by the Government , as this would provide some info on who the buyers are there is some validatiy releasing this data.
But this sidesteps a very important point , housing is a right not a privilege.
There is nothing wrong with everyone owning their own home.In fact its a good thing despite what economists would say. Owning your own home gives you more privacy and more security and locks in cost of living and therefore stability and peace of mind.
So if its such a good thing why do many economists and others pointing to europes low ownership rate say its not. How can something good for people be bad for the economy ? Or vice-a-versa, how can something good for the economy be bad for the people. Because capitalist economic system we live in has many contradictions . For example the low wage is good for individual employers as increases profit , it is not good for the whole economy as less wages means less consumer purchasing power and less commodity sales.
If the price of the house has got too high and your wages are low then it becomes cheaper to rent rather than buy. The other reason is economies are measured in the flawed measurement of GDP , Gross Domestic Product.This effectively measures all commodity sales in NZ or put another way how many times money circulates in the economy. The higher the GDP the healthier the economy so its said. House owners who bought years ago have locked in their cost of dwelling from rising in the future (except for rates) by inflation and those who continue renting dont so their dwelling cost will continually rise while inflation exists, thereby spending ore money in the economy.
Houses in a capitalist economy are sold at price set by supply and demand. currently demand is greater than supply.
So while Labour are correct and foreign buyers are a problem , they arent looking at the full picture and that is those buying houses you dont own is the problem be it landlord or speculator , foreign or kiwi. Those buyers compete with the kiwis and residents for houses they (speculators/landlords) dont need in order to make profit therby driving up the price of houses. People and corporations should not be allowed to buy a house they are not going to live in, depriving some else of their right to privacy and security and financial stability in their own home.
Of course Investor speculation can only exist in a climate of population growth. Because youre counting on someone else buying from you at higher price.Which leads me to the second part of the problem.
Population growth. Given its considered 2:2.1 is required
birth rate to maintain a steady stable population and NZs is around
that somewhere, the cause of population increase must be immigration.
We live under capitalism, an economics model based on profit drive
and capital accumulation thru workers and environment exploitation
and scarcity and continuous growth. Growth is mandatory or capitalism
does not function and is not helped by a corrupt banking system based
on fiat currency , debt and interest. One of the best ways to
increase growth by increasing sales is to increase the number of
consumers. This helps overcome the inherent contradictions and
failure of a capitalist economy. Another of course is debt generated
by speculation and by workers not being paid high enough wages and
needing to borrow to support their familys. Increasing house prices generally will increase borrowing and therefore bankers profits. ALL GOVERNMENTS and
political partys in NZ to my knowledge have a policy of increasing
the population of NZ by immigration to sustain the capitalist
economic system. This increase in population to sustain capitalism
puts pressure on housing when there is not enough existing houses
which is happening in Auckland. Immigration is not necessarily bad
for housing , its just bad under a capitalist model. Population
growth doesnt exist because capitalism exists , it exists because
people breed faster than they die. But in the western world it is
only increasing principally by immigration which exist because Govt allow it.
The question needs to be asked do we (both Maori 15% of the population and the rest of us 85% who are immigrants ourselves) want population
increase in the beautiful low populated country ? Those of us already living here should be able to have a say on if we want to reduce our quality of life in order just to keep a failing economic system going , should we not . Isnt that democracy ?
This is without starting on the erosion of Maori sovereignty immigration causes , but thats another topic for another day.
To my knowledge no Government or
political party is willing to either change (not reform) the
capitalist economic system or to educate you on the problems of
capitalism and the solutions known accept Mana. Go on write to them
and ask, I dare you, after all its a “democracy”, they will listen to you, wont they ?
Given the $ millions of profit private enterprises is making s and people and corporations are getting wealthy from increasing land prices the other option is the Government to build thousands more state houses instead of selling off thousands of the existing ones.
Given the $ millions of profit private enterprises is making s and people and corporations are getting wealthy from increasing land prices the other option is the Government to build thousands more state houses instead of selling off thousands of the existing ones.
But if you insist on being told what to do and voting Government back in, write to the Government and ask :
1) Forbid non residents or citizens not living in NZ from owning houses
2) Pass legislation forbidding owning more than one house and a holiday batch by an individual or family living in NZ
3) Build more state houses.
1) Forbid non residents or citizens not living in NZ from owning houses
2) Pass legislation forbidding owning more than one house and a holiday batch by an individual or family living in NZ
3) Build more state houses.
