Monday, Dec 18, 2006

Renting v Buying in NZ

NZ Herald: Renting v Buying in NZ

An excellent summary of a book looking at the NZ housing market which is way worse than the UK. Contains some very obvious points that are rarely made in the pro property NZ media eg you need growth of > 9% to be better off buying v renting, a rate which is of course unsustainable. I will be sending a copy to my friends for christmas.

Posted by squirrell @ 01:27 AM (2869 views)
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2 Comments

1. monty said...

Nice to see someone doing the numbers and taking the emotion out of it. It has strengthened my view that the housing ladder is not all it is cracked up to be. The only way a property's value increases in real terms (i.e. removing inflation) is through modification or a change in supply and demand (which is what the interest rate affects.) What makes the ladder seem plausible is the idea that, due to promotion, a salary should increase over and above inflation, thus allowing for greater borrowing and buying bigger better nicer houses.

Monday, December 18, 2006 03:42PM Report Comment
 

2. Northernlad said...

...daft as a brush us Brits!

Monday, December 18, 2006 07:27PM Report Comment
 

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