Home ownership has become an impossible dream for almost everyone.
Owning a home in New Zealand is an aspiration for many, and it will get even harder over the next decade. The much-quoted figure about the age of first-home buyers now being nearly 40 is not true. In fact, even 50-60 years olds including British migrants who, like their Indian and Chinese counterparts, love to buy their own homes but cannot afford.
An Indian example
A young lady spoke to me about her main concerns and she is only one of many dispirited young people. A 38-year-old from India, she moved to New Zealand with her husband who is highly educated with an advanced tertiary degree. Their combined salary is around the national average.
She said, “I would love nothing more than to own a house, but it is in a fantasy world. I am paying about $600 a week in rent. Even if I manage to save $500 a month, or $6000 a year, it would take 10 years to save $60,000; but by then, even this amount many not be sufficient to place as deposit for raising a home loan.
She said, “I try not to think about it too much, because it is depressing. At the moment I am paying off my landlord’s deposit and he is making profit on top of that.”
It is frustrating, but most people are in the same boat.
This sort of situation is a total lose-lose for our economy. We need to retain our appeal despite comparably high prices; the salaries need to be higher and interest rates a bit lower. The current government is just struggling with these issues.
NZPP Plan of Action
The New Zealand People’s Party (NZPP) is here with an organised plan of action.
Through its First Home buyers scheme, NZPP will help young and old people alike on to the property ladder.
Average house price $800,000
Deposit money needed: 20% – $160,000
Loan to be provided – $100,000 (Interest-free for five years)
For the rest of the country, the deposit amount would be $60,000.
I am in a similar situation. My husband and I are hard-working taxpayers.
It is terrible that the Government has not been able to do anything for people like us.
Bringing house prices down, on the other hand, is much easier: we just have to increase the supply. Commercial developers must be freed up to supply the tremendous demand, in places where it really exists.
I strongly feel that unless something does not dramatically change, it is possible that first-time buyers may never enjoy the sense of security and community that New Zealanders associate with home-ownership. Some will move out of the country. Others will rent for life. A grim, dark future.
We want to bring in a change and make our voices heard, and we can only do this if we have a representing party of the people in the government.
That is the main purpose of our policy making.
We have decided to prioritise the real problems that will decide the future of our country, not wait till the situation worsens.
We need to create more changes and our plans are already in place.
And for this we need your vote – your Party Vote.
We appeal for your support to get New Zealand People’s Party its place in the coming Election to form the next government.
Vote for NZPP. Vote for Change.
Sree Nampally is a Candidate of the New Zealand People’s Party in the ensuing General Election on September 23, 2017.