Saturday, October 12, 2013

First home buyers in Auckland have little to hope for.

Reports that first home buyers in Auckland are beginning to give up on getting their dream of entering the property market. The new rules about needing a 20% deposit are simply playing into the hands of investors and speculators. For those 'fat cats' who cry 'foul' when anyone talks about imposing a capital gains tax in order to cool down the demand for investment properties, I say, how about thinking of your fellow citizens for a change? If a significant sector of society is locked out of the NZ dream of owning a home, then expect social disruption as those who are doomed to stay at the bottom seek other answers. We can not have the gap between 'those who can and those can but dream,' ever increasing. Something has to give and when it does, maybe the greedy will take a plunge of epic proportions. To the politicians I say,' get your act together (but not ACT!) and provide a more hopeful playing field.' It is in the interests of us all to have the maximum number of our people with a real stake in the economy. Home ownership along with stable employment are vital factors to achieve this goal. The later of course is another factor in that an increasing number of NZers are employed on a non-permanent basis; called in only when needed. How can they ever save for a 20% deposit?
Of course for some the best action would be to leave Auckland and 'if' they can find employment in the provinces, move there, where the homes are more affordable and life is a little less stressful. I hope that David and the Labour Party is watching and comes up with policies that veer in a new direction. Tine will tell!
www.authorneilcoleman.com