Sounds fairly much like a pop up campsite...!

The stupid thing is that the PM before coming into power in 2007 ish said that there was a 'housing crisis' caused by Labour. But nearly 10 years later, it has only gotten worse, and he isn't calling this a housing crisis. Pretty much everyone else is calling it a housing crisis. I am guessing there is a reason why they aren't calling it a crisis?

The fact is they are bringing in all these immigrants, yet they don't have the housing or infrastructure for such a dramatic population growth. If we can't house NZers, we should be stopping immigration. . Overseas house buyers see a huge opportunity to make a huge capital gain, and opportunities for good rentals from this, because our slow moving laws are stupid enough to allow it too happen.

The thing is that it isn't just a crisis in Auckland. It was caused by Auckland, but because the government didn't fix it, it is now affecting other regions.

The link above looks to be a survey, as it links to a Survey Monkey survey to fill in. Maybe is was setup by a political party, to get an idea of the need for such accommodation? Is anyone really going to accept payment for someone living this way, and I would hope living in a car doesn't meet NZ living standards?

Not just Auckland. We were in Christchurch recently and there seemed to be more homeless compared to a few months back. There is also an increase in Wellington.

MikeB4:

 

Not just Auckland. We were in Christchurch recently and there seemed to be more homeless compared to a few months back. There is also an increase in Wellington.

 

I am guessing one reason people don't want to do much about the housing crisis, is that the home owners and developers have a lot of clout. And as house prices go up, people feel richer, and can borrow more against their house. So for many, they feel far better off. But even the CEO of the ANZ has spoken out against the problem. IMO something is going to crash as the bubble can't continue. I don't think a Labour/Greens coalition party coming in is going to be able to fix this either, as their policies aren't much better.

Political basis on the table in that I am fairly left of centre and that I find this type of bottom feeding just appalling and slightly ironic considering whose electorate this potentially illegal activity is now taking place in. However having spent the last 18 months trying to build a modest house in Auckland  I would say the Auckland council have a large part to play in the supply side of this complicated issue.

At any rate I don't believe there is an easy fix like stopping immigration but clearly something more needs to be done and the people to lead us in this are our elected officials/leaders/politicians. I would really like someone to take a pragmatic economically rational look at this and present a plan that actually tackles what is a clear issue. What we instead seem to have currently is people on the right, quasi ignoring the issue and people on the left coming up with headline grabbing non-workable alternatives.

*sigh*

mattwnz:

 

... The link above looks to be a survey, as it links to a Survey Monkey survey to fill in. Maybe is was setup by a political party, to get an idea of the need for such accommodation? 

The "survey" is actually a questionnaire for your requirements if you wanted to take this person up on the offer. I don't think it links back to a political party.

mattwnz:

 

The stupid thing is that the PM before coming into power in 2007 ish said that there was a 'housing crisis' caused by Labour. But nearly 10 years later, it has only gotten worse, and he isn't calling this a housing crisis. Pretty much everyone else is calling it a housing crisis. I am guessing there is a reason why they aren't calling it a crisis?

 

The fact is they are bringing in all these immigrants, yet they don't have the housing or infrastructure for such a dramatic population growth. If we can't house NZers, we should be stopping immigration. . Overseas house buyers see a huge opportunity to make a huge capital gain, and opportunities for good rentals from this, because our slow moving laws are stupid enough to allow it too happen.

 

 

 

The thing is that it isn't just a crisis in Auckland. It was caused by Auckland, but because the government didn't fix it, it is now affecting other regions.

 

 

 

The link above looks to be a survey, as it links to a Survey Monkey survey to fill in. Maybe is was setup by a political party, to get an idea of the need for such accommodation? Is anyone really going to accept payment for someone living this way, and I would hope living in a car doesn't meet NZ living standards?

 

I agree. Immigrants should be required to build their own house. Or a means of housing that creates a new home. Cater for themselves. Leave the housing issues for us to manage, but provide your own housing from NOT our house supply. Sorted. 

If you try to drive teh house prices down too much you will find banks have lent money on houses that are worth less than the mortgages. When this happens banks can become bankrupts. Not good.

Its easy to react against "immigration" but I think we need to take a sensible approach. Possibly create incentives for immigrants to look at provincial towns. Definitely create disincentives for anyone at all to sit on undeveloped land or under-utilised buildings waiting for years expecting prices to rise automatically. Maybe part of the solution is for Auckland Council to shift to rates calculated on land value and cost of infrastructure/services to encourage more development.

tdgeek:

 

 

 

I agree. Immigrants should be required to build their own house. Or a means of housing that creates a new home. Cater for themselves. Leave the housing issues for us to manage, but provide your own housing from NOT our house supply. Sorted. 

 

They do in at least some Australian states. It just makes so much sense. But many coming into NZ will initially be renting and not buying, and they will likely remain renting forever due to the high cost of houses. Although it is a rental, it is also a rental that a NZer misses out on, which is why people are living in cars. But  a significant problem is also overseas buyers buying NZ houses, who aren't actually living here, as they are buying for both capital gain and the increasing rent, and that money then heads off overseas. Housing can be a great investment in NZ due to all the advantages it offers, but it is not great for first home buyers. a 1 million dollar house in Auckland is actually going to end up costing nearly 2 million over the life of a loan. 2 million is an insane amount of money, for a often poorly insulated low spec timber house.

This issue is a 'be careful what you wish for' situation. If the "bubble bursts" there will be a lot of collateral damage and its effects will be hard to predict and control.

webwat:

 

If you try to drive teh house prices down too much you will find banks have lent money on houses that are worth less than the mortgages. When this happens banks can become bankrupts. Not good.

 

Its easy to react against "immigration" but I think we need to take a sensible approach. Possibly create incentives for immigrants to look at provincial towns. Definitely create disincentives for anyone at all to sit on undeveloped land or under-utilised buildings waiting for years expecting prices to rise automatically. Maybe part of the solution is for Auckland Council to shift to rates calculated on land value and cost of infrastructure/services to encourage more development.

 

Good points. This crash they all yak on about is noise. If house prices drop 15% thats probably a crash but its not. Those who bought houses in the last two years, including me, took a risk. If my house dropped in price 15% tomorrow, hey, it still looks the same. Im not forking out more money if it did.Time heals all mostly. Those who took too much a risk, i.e.,gambled on a low deposit, low equity, quick cash, well, there you go.

webwat:

 

If you try to drive teh house prices down too much you will find banks have lent money on houses that are worth less than the mortgages. When this happens banks can become bankrupts. Not good.

 

Its easy to react against "immigration" but I think we need to take a sensible approach. Possibly create incentives for immigrants to look at provincial towns. Definitely create disincentives for anyone at all to sit on undeveloped land or under-utilised buildings waiting for years expecting prices to rise automatically. Maybe part of the solution is for Auckland Council to shift to rates calculated on land value and cost of infrastructure/services to encourage more development.

 

Banks will never lose though, because the government will have to bail them out. The government won't want their voters to lose their savings in the bank. But they have done stress tests and the Auckland house prices can drop by more that 40% before banks will become stressed. It is only a small proportion of home owners who have actually purchased an overpriced house near the top of the housing bubble, so the banks aren't necessarily that exposed. Many of their loans will be from years ago when house prices were much lower.

mattwnz:

 

tdgeek:

 

 

 

I agree. Immigrants should be required to build their own house. Or a means of housing that creates a new home. Cater for themselves. Leave the housing issues for us to manage, but provide your own housing from NOT our house supply. Sorted. 

 

 

 

 

They do in at least some Australian states. It just makes so much sense. But many coming into NZ will initially be renting and not buying, and they will likely remain renting forever due to the high cost of houses. Although it is a rental, it is also a rental that a NZer misses out on, which is why people are living in cars. But  a significant problem is also overseas buyers buying NZ houses, who aren't actually living here, as they are buying for both capital gain and the increasing rent, and that money then heads off overseas. Housing can be a great investment in NZ due to all the advantages it offers, but it is not great for first home buyers. a 1 million dollar house in Auckland is actually going to end up costing nearly 2 million over the life of a loan. 2 million is an insane amount of money, for a often poorly insulated low spec timber house.

 

1000% agree. Keep housing issues a Kiwi issue and legislate that external, which are in effect artificial, out of it. Sure there may be issues for skills that we are short of, but others, rock on in with your millions, and build your own.

mattwnz:

 

webwat:

 

If you try to drive teh house prices down too much you will find banks have lent money on houses that are worth less than the mortgages. When this happens banks can become bankrupts. Not good.

 

Its easy to react against "immigration" but I think we need to take a sensible approach. Possibly create incentives for immigrants to look at provincial towns. Definitely create disincentives for anyone at all to sit on undeveloped land or under-utilised buildings waiting for years expecting prices to rise automatically. Maybe part of the solution is for Auckland Council to shift to rates calculated on land value and cost of infrastructure/services to encourage more development.

 

 

 

 

Banks will never lose though, because the government will have to bail them out. The government won't want their voters to lose their savings in the bank. But they have done stress tests and the Auckland house prices can drop by more that 40% before banks will become stressed. It is only a small proportion of home owners who have actually purchased an overpriced house near the top of the housing bubble, so the banks aren't necessarily that exposed. Many of their loans will be from years ago when house prices were much lower.

 

And the banks can cover the loans, which even though the house prices dropped a lot, are still the repayments if they hadn't. At a stretch the Govt could underwrite, which gives no exposure, but could do. That the citizens wont want to throw away a home, keeps that in check. Unlike the US where they have a propensity to walk away. 

thestokes:

 

Political basis on the table in that I am fairly left of centre and that I find this type of bottom feeding just appalling and slightly ironic considering whose electorate this potentially illegal activity is now taking place in. However having spent the last 18 months trying to build a modest house in Auckland  I would say the Auckland council have a large part to play in the supply side of this complicated issue.

 

At any rate I don't believe there is an easy fix like stopping immigration but clearly something more needs to be done and the people to lead us in this are our elected officials/leaders/politicians. I would really like someone to take a pragmatic economically rational look at this and present a plan that actually tackles what is a clear issue. What we instead seem to have currently is people on the right, quasi ignoring the issue and people on the left coming up with headline grabbing non-workable alternatives.

 

*sigh*

 

Maybe they need to setup a brand new city, and impose a ban on new immigrants settling in Auckland. But it is never going to happen because so many people have financial interests in Auckland urban intensification, and house prices continuing to go up. Much of the rise is based on the land value, due to the unity plans. This is why 4 houses on average sized sections can sell for 7 million dollars, and they can then build a  multi unit development on the land, that will house over 150 people. The 7 million dollars  for the houses is cheap compared to the potential profit that can be made from it.