RMA reforms and higher deposit rules will struggle to encourage enough house building and improve affordability until voters debate and agree to jointly fund the infrastructure costs of high migration
Bernard -you are the first media commentator brave enough to mention the link between our current infrastructure deficit and NZ's 20-year population explosion. I would hazard a guess that most journalists are reticent to mention the link because they do not want to stir up any anti-migrant sentiment. I totally get it. But really the migrants themselves are irrelevant. The issues are 1) the lack of planning for the city of new arrivals that we see every year, and 2) that decisions about NZs population size are being made by our 2 main political parties without either ever openly stating or debating their intention to radically change NZ in this way. Thank you for so eloquently pointing out the associated 'elephants in the room'.
Leveraging the Mathematics
A private home-owner owns their own house mortgage free valued at $1,500,000
They were planning on buying an investment property valued at $1,000,000 prior to 1 January 2021
As a result of the Labour and RBNZ ministrations both properties escalated in price 20% over 12 months
The LVR required to buy the investment property is currently 30%
That requires a security (deposit) of $300,000 at 30%
From 1 May 2021 the deposit rises to 40% or $400,000
The equity in the owner-occupied house has risen $250,000 over 2020
No problems, plenty of security. Could afford an LVR of 50% easy. Didnt have to do a thing
If the investor already owned an investment property, the buying muscle went up more
Bernard -you are the first media commentator brave enough to mention the link between our current infrastructure deficit and NZ's 20-year population explosion. I would hazard a guess that most journalists are reticent to mention the link because they do not want to stir up any anti-migrant sentiment. I totally get it. But really the migrants themselves are irrelevant. The issues are 1) the lack of planning for the city of new arrivals that we see every year, and 2) that decisions about NZs population size are being made by our 2 main political parties without either ever openly stating or debating their intention to radically change NZ in this way. Thank you for so eloquently pointing out the associated 'elephants in the room'.