Saturday, December 4

Many homeowners could not afford to buy their homes if they buy them now.

Three out of five homeowners would not be able to pay for their property if they had to buy it at the current valuation, Consumer NZ revealed.

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New Zealanders More Concerned About Housing Than Covid-19, Says Consumer NZ
Photo: RNZ / Dom Thomas

The figures were compiled through the organization’s sentiment tracker, which tracks how New Zealanders feel about a variety of topics.

About 58 percent of those surveyed didn’t think they could buy their home at its current appraisal, 9 percent didn’t know, and 33 percent said they could.

For people who did not own a property, the tracker found that more than 40 percent felt totally left out of the market.

Consumer NZ spokeswoman Gemma Rasmussen said housing was the biggest concern of respondents, even above Covid-19.

“Our runaway housing market has solidified New Zealand as a country divided by real estate wealth. If you don’t have one foot on the property ladder, the dream of owning your own home is increasingly unlikely. Today, the price Median housing is more than 12 times the national median income, “Rasmussen said.

“We asked New Zealanders what their biggest concerns are right now, and from both a national and a financial perspective, the answer was housing … Regardless of whether you own a house or rent it, New Zealanders are deeply concerned about the state. of the house. “

Those aged 60 to 69 were least likely to be able to purchase the property (66 percent), followed by those aged 50 to 59 and those older than 70 (59 percent). About half of people between the ages of 18 and 29 could still afford their property.

The consumer watchdog provided an example of James, a Whangārei registered electrician who bought his home for $ 450,000 in 2018.

Since then, the property’s capital gains have exceeded the combined annual salaries of both him and his partners.

“We were really lucky to get into the housing market when we did. Between the two of us we had 30 years of KiwiSaver combined, and some savings on top of that. When we bought the house, it was a huge relief that we wouldn’t.” in debt to the owner. It offers us peace of mind.

“If we had acted a few years later, the purchase of our house would not have been possible.”

Renters often live in moldy houses with inadequate heating and pay about 30 percent of their income for rent, Rasmussen said. Midday report.

“It is not about how much money you make, you are in or out, and if you don’t have family support or a very high salary, it makes it very difficult for you.”

On the opposite side, people who own houses are getting richer. The divide exacerbates cycles of poverty, Rasmussen said.

“I think we are going to see two New Zealanders. We are going to see New Zealanders who are enjoying the capital gains from the houses they live in, they are going to be able to accumulate more homes and there will be a smaller population of New Zealand who own a house and investment properties.

“And then there will be a greater proportion of New Zealand who will be definitely left out, and that doesn’t matter if they have a great job or save a lot. If that’s what they were born into, that’s where it ‘will be ready.”

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