4 ms·

> It's clearly reasonable for the person paying the rent How so? They may not have an option to not pay it(as we're seeing happen in cities all over the world)

> It's clearly reasonable for the person paying the rent How so? They may not have an option to not pay it(as we're seeing happen in cities all over the world) Definition of reasonable[https://www.merriam-webster.com/dictionary/reasonable https://www.merriam-webster.com/dictionary/reasonable] 1 a : being in accordance with reason - a reasonable theory b : not extreme or excessive - reasonable requests c : moderate, fair - a reasonable chance a reasonable price d : inexpensive

isostatic 8y ago
Unless you live in a tiny country like singapore, you have a choice where to live. Economic theory says that if the price is unreasonable, people won't pay it.
- spronkey 8y ago
  You have to live somewhere though, and in NZ cities rents are high enough that they prevent many renters from saving any money at all. So, no, supply and demand theory kinda doesn't stack up when it comes to housing.
  - isostatic 8y ago
    2 bed house, $310 a week, that's under half the minimum wage. That doesn't seem too extreme to me. That's for a two bed remember, so if you are a couple on median wage, you'll be earning $1800 a week pre tax, about $1500/week take home. https://www.trademe.co.nz/property/residential-property-to-rent/auction-1737239163.htm https://www.trademe.co.nz/property/residential-property-to-r... Should be able to save $450 a week out of that. After 3 years that's $70k, a 20% deposit on https://www.realestate.co.nz/3341361 https://www.realestate.co.nz/3341361, with a mortgage then costing about $330 a week. The problem people who complain about house prices seem to have is that they want to live in very specific and desirable locations (Certain parts of Auckland for instance). There is a high demand for these locations, therefore price is high. But clearly the price is reasonable as people can afford to live there, otherwise they wouldn't pay the rent/mortgage. When people stop paying high prices for rent in aukland, and instead live elsewhere, then companies in Aukland will have to either 1) Relocate to cheaper locations to attract staff 2) Pay staff more so staff can live in the area It's the same the world over. You can buy a house in the UK half an hour out of two major cities for £125k. That's a £7k deposit (£44/week or £190/month for 3 years) and £550 a month after that. If you can afford £600 a month for housing costs (£400 rent plus £200 deposit), you can rent for 3 years, then buy, within 35 minutes of Leeds and Manchester. Minimum wage is about £1200 a month after tax.
- sametmax 8y ago
  And hence live and crappy houses or very far away from work, good scools and social life.

isostatic 8y ago

Unless you live in a tiny country like singapore, you have a choice where to live. Economic theory says that if the price is unreasonable, people won't pay it.

spronkey 8y ago
You have to live somewhere though, and in NZ cities rents are high enough that they prevent many renters from saving any money at all. So, no, supply and demand theory kinda doesn't stack up when it comes to housing.
- isostatic 8y ago
  2 bed house, $310 a week, that's under half the minimum wage. That doesn't seem too extreme to me. That's for a two bed remember, so if you are a couple on median wage, you'll be earning $1800 a week pre tax, about $1500/week take home. https://www.trademe.co.nz/property/residential-property-to-rent/auction-1737239163.htm https://www.trademe.co.nz/property/residential-property-to-r... Should be able to save $450 a week out of that. After 3 years that's $70k, a 20% deposit on https://www.realestate.co.nz/3341361 https://www.realestate.co.nz/3341361, with a mortgage then costing about $330 a week. The problem people who complain about house prices seem to have is that they want to live in very specific and desirable locations (Certain parts of Auckland for instance). There is a high demand for these locations, therefore price is high. But clearly the price is reasonable as people can afford to live there, otherwise they wouldn't pay the rent/mortgage. When people stop paying high prices for rent in aukland, and instead live elsewhere, then companies in Aukland will have to either 1) Relocate to cheaper locations to attract staff 2) Pay staff more so staff can live in the area It's the same the world over. You can buy a house in the UK half an hour out of two major cities for £125k. That's a £7k deposit (£44/week or £190/month for 3 years) and £550 a month after that. If you can afford £600 a month for housing costs (£400 rent plus £200 deposit), you can rent for 3 years, then buy, within 35 minutes of Leeds and Manchester. Minimum wage is about £1200 a month after tax.
sametmax 8y ago
And hence live and crappy houses or very far away from work, good scools and social life.