Is there a housing crisis in Auckland? You would think so when you read reports of there being many buyers competing for a relatively small number of houses in Central Auckland. All this does is force up the price and put those houses beyond the means of most NZers. It also puts an intolerable pressure on those young buyers who are mortgaging themselves to the hilt. Banks lend them the money, often knowing that the new buyers are going way beyond their capacity to pay.
Allowances are not made with these huge loans for the unexpected; hence the bank will retrieve their money at a later date, sometimes leaving the mortgagees in dire straits.
Would it not be a lot more sensible for these buyers to lower their aspirations? One does not have to travel far into the suburbs to purchase a more realistic deal. Indeed, the buyers would get more for their money and not have the spectre of entering into a later mortgagee sale. What is the point of lumbering oneself with a huge debt and then sacrifice all chance of living a reasonable life. It is this impossible dream from an ‘I want it now’ generation that is turning a whole echelon of young buyers (and others) into a debt ridden, depressed group in society.
Turn back the clock before it is too late and take a leaf out of our grandparents book---- buy what you can afford and move up, if you still want o at a time when you can afford it. Stay with your present frame of mind and reap the consequences!