There's a perverse logic to this, but across the Tasman right now, where our flying Kiwis are headed, they're experiencing something of a property boom.
It's the opposite of the stagnant or falling prices we're seeing here, where homes in most regions are now considered, technically at least, affordable.
In Sydney the median prices of a new pad is predicted to increase 7% this year to $2.1m NZD by June 2026.
If you want to be a Melbourne hipster, prices will be 6% higher in a year to $1.2m.
They've not got a problem which we know all too well - prices are squeezing out first home buyers.
You can't get on the ladder for love nor money, look at the new loans from banks.
Landlords: 200k new loans over the year - that's the most since 2022. First home mortgages, they're down to $116k.
Because they're cutting interest rates, houses are more affordable for those with equity - i.e. existing homeowners and landlords.
Typically, this is seen as a problem - you want people to have a stake in their country and the best way to do that is owning a piece of it.
But property is inextricably linked to the success of our economy, falling and flat house prices here are not actually a great news story.
The wealth effect of the biggest asset most of us own informs our spending habits. When we feel richer, we go swipe the credit card. When we don't, we don't.
So the question is: is it better to have affordable homes in a country in which young people can't find a job, or are you better off in a country where homes are less affordable but wages are higher and the economy's stronger?
The answer lies in the number of Kiwis who're voting with their feet and buggering off across the Tasman.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
9 comments:
Take the foot off the back of the necks of the banks and accept the lending practices of Australia and you’ll find that it is easier for everyone to do business in this country. Examples - draconian AML practices that do nothing to prevent money laundering by gangs, attitudes that decry the banks making a profit as though they should behave like a charity instead of acting in the best interest of shareholders (which is what they are required to do by law)….and lending laws that mean the banks lending manager can’t take a punt on a kid with a good credit history and extend a loan to them that they know they will be able to afford to payback - just because it doesn’t tick the govt prescribed affordability box.
Just a few sensible right wing things that I experienced in Oz vs NZ. In Oz 5% deposit loans are the norm for first home buyers and million dollar mortgages over 1 home and no other assets are very common.
Nothing to do with our apartheid ethnostate then?
You have it all wrong, Ryan.
The reason people are leaving here is because they’re sick and tired of all this ridiculous, racist Maori wonderfulness being shoved down their throats every time they turn around.
Maybe re. housing - but still not the major reason. Young non- Maori ( of all ethnicities) - see a racially divided country where they will be 2nd class citizens. A bleak future - so better to go now.
Why can NZers not face this truth ?
Why doesn't someone actually ask them why they're leaving? A proper consideration of the answers might be helpful. But we seem to be happy in our ignorance. Perhaps the pollsters could do a poll from time to time asking why?
MC
I'm an Aussie who retired to NZ but I'm back in Oz on hols to check out where to return to - and to remove my wealth from NZ. The pollies have not got a clue, it is not the "Economy Stupid" it is the " Maori BS being rammed down our throats Stupid"
A simple enough question to put on a departure card, but really it should provide some answers to be ranked on priority by the emigrant.
Many reasons but mainly a population that wont change it. Watch the numbers go up should labour greens get in again.
The Lab Green TPM block will be happy if wrongthinkers leave. They can be replaced by many who share the Green, Gender,Climate etc beliefs from UK Europe etc who would happily comply with ethnic based rule. Business closures would be replaced by state or iwi run outfits. Job losses are no problem because more taxes would levied on those remaining with limits and levies on money leaving the country.
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