Electoral Party most likely to do something about Auckland housing bubble?

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#1538095 22-Apr-2016 13:32

Jase2985:

Sam91:

Higher density housing like Hobsonville Point is a step in the right direction.

it is but not at the price they are being sold for

New houses don't have to be affordable for first home buyers to make a difference to the overall problem. The key thing is increasing total supply. Those that move into new houses free up an old house somewhere (all else being equal)

sir1963

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#1538096 22-Apr-2016 13:32

MikeB4:

The long term solution in my unlearned opinion is we need to reverse the 70's and 80's disaster of centralisation of commerce and industry. We created this mess when we decided that every head office and major business needed to be in Auckland.

What would help there is a REAL user pays system. So instead of industries averaging prices so that their products costs the same in Auckland as it does in Invercargill it should reflect real costs.

So Power for example should cost more in Auckland than it would cost down south.

Lower land costs, lower rates, lower power prices could see some industries move out of Auckland to where the the costs are cheaper.

Limit tax deductions in Auckland , i.e. because of the traffic jams transport of goods costs more in Auckland, reduces the tax deductibles for this, and again the could encourage business to move to the regional cities.

Foreign investment should ONLY be allowed if it creates NEW jobs. Buying an existing business is NOT investment, limit foreign owner ship to 49%, and if they want to have 33% then they need to expand the existing business by 50% (so they own 1/3). Land can only be leased for 25 years by foreign people/companies, they can not own it.

NZ companies can NOT buy land in China, so why let them buy up the farm here ?

Batman

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#1538098 22-Apr-2016 13:33

There is no fix. It will just keep going up.

Disclaimer: i don't own anything there

BTR

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#1538102 22-Apr-2016 13:38

Reducing our immigration intake would be a start, most immigrates arrive in AKL and stay in AKL.

Being an outsider ( From the south island) each time I travel to or through Auckland I can never get over how congested and bad the layout of the city is.

So have fun with that Auckland.

MikeB4

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#1538103 22-Apr-2016 13:38

UHD:
MikeB4:

The long term solution in my unlearned opinion is we need to reverse the 70's and 80's disaster of centralisation of commerce and industry. We created this mess when we decided that every head office and major business needed to be in Auckland.

You mean the way every modern economy on Earth is centralized? I don't think it is a problem created by New Zealanders.

Does not lessen the mistake

Here is a crazy notion, lets give peace a chance.

TeaLeaf

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#1538138 22-Apr-2016 14:17

The main thing im concerned with is a crash, which is quite feasible. Yet it seems noone is managing that risk mitigation, in fact they just keep lowering the interest rates.

What Im wanting to see is simply action from a government to soften the blow, not a sudden 18% interest rates 40% min deposit etc etc.

Combined with the flag and TPPA, Im just over believing this government is acting a nationalist manner. If anything its more of a labour like thing to be doing, no, not even labour would be this complacent.

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#1538144 22-Apr-2016 14:26

MikeB4: I do not think it's politically fixable.

Perhaps, it might have gone past the point of control?

Hang on and hope it doesnt hurt the ones you love.

Salaries already dont justify cost and are nowhere near rising with cost of living, infrastructure doesnt justify cost, almost nothing aside from a nice (yet compromised and quickly being degraded by bad fore site) ocean.

Its a consumer state. So its not production justifying the cost.

Again you could be right, when people go, oh frek we earn $80k and have a $600k mortgage what if things quickly changed, that might be the only things to change. Ie people opening their eyes. But the sad thing to that is its the poor guys who bought into the dream with every last dime and over stretched themselves that will get burnt.

When houses cost more in Auckland than Sydney, there is a real scenario of beyond buyer frenzy imo.

Maybe that is why the government isnt doing anything, they let it get beyond their control by ignoring the reserve bank.

TeaLeaf

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#1538150 22-Apr-2016 14:31

macuser:

We just need people moving back to different regions of NZ, and foreigners moving to other parts of NZ.

that is one answer to one of the questions i deliberately didnt answer because it was in my OP, the other is enticing business elsewhere. Satelitte cites they were calling it in Sydney last time i lived there, ie Penrith, Wollongong, Gosford, Newc etc. But imo a country the size of NZ you could spread it further geographically especially given telecommuting and viable solutions to virtual meetings.

sir1963:

Well, having used the legacy train sets in London, New York, Paris, Rome, Sydney and compared that to the logjam that is Auckland, I know which I prefer.

A start of the solution to Auckland is pegging how much can be loaned.

If there was a lending limit of 80% of the last GV, that would slow things a LOT and yet have little impact in other parts of NZ where housing growth is more realistic.

agree with all that, thats why i mentioned our infrastructure doesnt justify cost. even sydney is more commutable, but compared to brisbanes train service we are in the dark ages. and as for buses even wellington is well ahead of us.

lending to 20% and raise interest rates along with the CBT.

introduce tolls to fund proper infrastructure in sydney.

you want to drive to work it will cost you $12 each way due to a variety of tolls funding projects like a north shore train line with well thought out links. then parking on top of that. people will start using trains. more. but hey thats not to say they are in a state to cope with it yet.

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#1538152 22-Apr-2016 14:36

gzt:
MikeB4:
The long term solution in my unlearned opinion is we need to reverse the 70's and 80's disaster of centralisation of commerce and industry. We created this mess when we decided that every head office and major business needed to be in Auckland.

Were there specific policies that encouraged every head office and major business to locate in Auckland?

Things tend to tend towards a center of gravity I think. Wellington to Auckalnd to Sydney to Singapore

nathan

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#1538153 22-Apr-2016 14:38

sir1963:
MikeB4:

The long term solution in my unlearned opinion is we need to reverse the 70's and 80's disaster of centralisation of commerce and industry. We created this mess when we decided that every head office and major business needed to be in Auckland.

What would help there is a REAL user pays system. So instead of industries averaging prices so that their products costs the same in Auckland as it does in Invercargill it should reflect real costs.

So Power for example should cost more in Auckland than it would cost down south.

Lower land costs, lower rates, lower power prices could see some industries move out of Auckland to where the the costs are cheaper.

Limit tax deductions in Auckland , i.e. because of the traffic jams transport of goods costs more in Auckland, reduces the tax deductibles for this, and again the could encourage business to move to the regional cities.

Foreign investment should ONLY be allowed if it creates NEW jobs. Buying an existing business is NOT investment, limit foreign owner ship to 49%, and if they want to have 33% then they need to expand the existing business by 50% (so they own 1/3). Land can only be leased for 25 years by foreign people/companies, they can not own it.

NZ companies can NOT buy land in China, so why let them buy up the farm here ?

The better question is why a landowner can't do whatever they like with their land. Sell it to the highest bidder or choose not to. Chinese landowners can't do that.

TeaLeaf

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#1538154 22-Apr-2016 14:42

kobiak:

- fast rail to Whangarei and Hamilton.

satelitte cities. spot on. even "rail" without the fast. haha.

fast rail to Tauranga

lots of oppurtunities even just for digital age work place.

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TeaLeaf

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#1538156 22-Apr-2016 14:45

GZ for government lol

collective thinkers who give a ....

gzt

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#1538167 22-Apr-2016 15:04

The financial risk is one aspect of the housing issue. The other issue is actually housing.

Fred99

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#1538216 22-Apr-2016 16:16

The financial risk is massive.

Yet there are still people prepared to "invest" at the peak of a cycle driven by:

Record high immigration.
Record low interest rates.

With a background of low wage growth, low GDP growth, low inflation - and a risk of deflation.

We're one "shock" away from disaster - that shock doesn't need to be domestic - it will most probably be something offshore.

I call BS on the claims that "it's always been hard to buy a house". SWMBO and I bought our first home in Balmain, Sydney, it took one year to save a 25% deposit, mortgage repayments were about the same as what we were paying in rent - no more than about 30% of our net income. The difference then was that there were sensible limits on lending (about 2x gross annual income).

wsnz

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#1538218 22-Apr-2016 16:19

Any Government responsible for a sizable correction in the housing market would be turfed out of office at the next election. The reality will bite when a sizable proportion of equity in their home is wiped off the balance sheet.

What people actually want is everybody else's house to decline in value in order to make housing more affordable; They do not want theirs touched!

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