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Not when the local is downsizieng from a 4 bed house and garden to a 2 bed apartment for retirement, or they simply die and it's local's kids that sell it. The

Not when the local is downsizieng from a 4 bed house and garden to a 2 bed apartment for retirement, or they simply die and it's local's kids that sell it. There's a simple solution to avoiding buying in expensive locations though - buy in cheap locations.

wepple 8y ago
So the local sells to a foreign buyer and downsizes. That’s great for them. But their kids are now priced out of the market, and will never own a home but rent from someone who lives 15h flight away.
- isostatic 8y ago
  Sure. Life sucks doesn't it Fortunately there are many places that someone in NZ can buy a house. https://www.realestate.co.nz/3379275 https://www.realestate.co.nz/3379275 For example is proavly affordable on minimum wage of $32k, certainly with two incomes.
  - wepple 8y ago
    I’m not sure the point you’re trying to make here. It’s a town of 1700 people, described by Wikipedia as a “gang town”. If your point is that it’s possible to buy a house in NZ, sure. But quality of life is totally a thing, no? And even then, your example requires a $40k deposit while earning $32k, a salary which doesn’t appear to have a whole lot left over and the end of the week.
lostlogin 8y ago
There aren’t any cheap locations. Fractionally less expensive, but still many multiples of a yearly wage.
- isostatic 8y ago
  You want somewhere that's affordable for 1x yearly wage? Care to point to some time in history that was possible?
  - lostlogin 8y ago
    Having New Zealand cities with average prices at 10x yearly average household income and a NZ average at over 6x is a radical departure from NZ’s historically narrow rich/poor divide. https://www.interest.co.nz/property/house-price-income-multiples https://www.interest.co.nz/property/house-price-income-multi... https://www.google.co.nz/amp/s/amp.theguardian.com/commentisfree/2014/dec/12/how-new-zealands-rich-poor-divide-killed-its-egalitarian-paradise https://www.google.co.nz/amp/s/amp.theguardian.com/commentis...
    - isostatic 8y ago
      Christchurch is 4.87 times median income. New Plymouth 5.03. Hell parts of the capital are under 5x. That's quite a normal multiplier in today's low interest and 2 income world (in parts of London the multipler is 38!) What you're saying is that you can't afford to live in nice areas of Auckland. So don't.
munificent 8y ago
Local's kids gotta live somewhere too. My understanding is that skyrocketing housing prices aren't much of a benefit to anyone who doesn't own more than one home. Because you always need to live in at least one place, your economic elasticity only kicks in when the number of homes you buy and sell is greater than one.

wepple 8y ago

So the local sells to a foreign buyer and downsizes. That’s great for them. But their kids are now priced out of the market, and will never own a home but rent from someone who lives 15h flight away.

isostatic 8y ago
Sure. Life sucks doesn't it Fortunately there are many places that someone in NZ can buy a house. https://www.realestate.co.nz/3379275 https://www.realestate.co.nz/3379275 For example is proavly affordable on minimum wage of $32k, certainly with two incomes.
- wepple 8y ago
  I’m not sure the point you’re trying to make here. It’s a town of 1700 people, described by Wikipedia as a “gang town”. If your point is that it’s possible to buy a house in NZ, sure. But quality of life is totally a thing, no? And even then, your example requires a $40k deposit while earning $32k, a salary which doesn’t appear to have a whole lot left over and the end of the week.

lostlogin 8y ago

There aren’t any cheap locations. Fractionally less expensive, but still many multiples of a yearly wage.

isostatic 8y ago
You want somewhere that's affordable for 1x yearly wage? Care to point to some time in history that was possible?
- lostlogin 8y ago
  Having New Zealand cities with average prices at 10x yearly average household income and a NZ average at over 6x is a radical departure from NZ’s historically narrow rich/poor divide. https://www.interest.co.nz/property/house-price-income-multiples https://www.interest.co.nz/property/house-price-income-multi... https://www.google.co.nz/amp/s/amp.theguardian.com/commentisfree/2014/dec/12/how-new-zealands-rich-poor-divide-killed-its-egalitarian-paradise https://www.google.co.nz/amp/s/amp.theguardian.com/commentis...
  - isostatic 8y ago
    Christchurch is 4.87 times median income. New Plymouth 5.03. Hell parts of the capital are under 5x. That's quite a normal multiplier in today's low interest and 2 income world (in parts of London the multipler is 38!) What you're saying is that you can't afford to live in nice areas of Auckland. So don't.

munificent 8y ago

Local's kids gotta live somewhere too. My understanding is that skyrocketing housing prices aren't much of a benefit to anyone who doesn't own more than one home. Because you always need to live in at least one place, your economic elasticity only kicks in when the number of homes you buy and sell is greater than one.