Saturday, January 30, 2016
Auckland costs re housing are hiding an Achilles Heel.
The price of housing in Auckland, be it for ownership or renting, is reaching a point whereby a large proportion of Auckland's inhabitants are living a lie. Their dream of ever owning a home, is receding as prices continue to rise, forcing many to rent---but once again, there is a trap; rents too are rising beyond the means of many. We are hearing stories of overcrowding and sordid reprts of young women turning to giving 'sexial favurs' to unscrupoulus landloads. One wonders if we are rching a 'tip-point,' whereby people are becoming trapped in debt, using credit cards to the point that they are forever paying interest, not being able to move on, to save or to ever get out of debt. That sometimes leads people into giving in, and just going with the flow, entering into yet more debt. That 'tip-point' is going to rebound on the economy, not just if Auckland, but on New Zealand as a whole.Those in power, who are in league with those who gain from ever increasing house prices or from the high rentals, will eventually become part of the 'burnt,' as the ability of people to spend is lessened. Eventually, even the banks will call in the debts. What will people have to 'spend' then, once they lose the ability to create more debt?!Rough times ahead, methinks!