I’ve been on a bit of financial planning binge over the last several months. This was prompted by a bunch of books I’ve been reading including the books from the ‘Rich Dad, Poor Dad‘ series and a bunch of investment books (including shares, bonds and property).
Meanwhile there has been a house price spike in Auckland, New Zealand as can be seen from the tail end of the graph below (data from Barfoot & Thompson).
Interestingly, during this period, total returns are 21% or 4.2% per annum. Adjust that for inflation and you got a 1.8% return on your investment, hardly amazing. But that’s a subject for another post.
Back in 2005 when we bought our current house (a 3 bedroom house on a small section on Auckland’s North Shore) we were able to get it with a mortgage of about 3.5 times our combined income. We then went overseas for a couple of years and came back ready to have our first child. Fortunately, my income had increased, so we could still afford our mortgage (3.7 times income).
These days, with two growing pre-schoolers, a wife who’s just finished studying and is returning to work our mortgage is a very healthy 2.3 times income.
Here’s the issue, like many of our peers (and generations before us) we’re now growing out of our 3 bedroom house on a cross leased section.
In previous generations they may have just added an extension (not possible with so little land) or simply moved to another house with only a marginal increase in their mortgage.
Even though our house price has to some extent kept up with house price increases, acquiring a four bedroom house on a full section in our neighbourhood would require us to increase our mortgage by 82%.
This would mean our mortgage was now 4.3 times earnings, without the likelihood of the dramatic salary increases possible in the earlier years of your career. [Note, this site suggests 2 – 2.5 times gross earnings].
So what am I saying?
There’s a lot written about housing affordability and the fact that people can’t afford a first home. I’m looking on one step further, even if you can afford a small first home, based on two incomes, what future can you look forward to when kids come along and you eventually need a bigger place?
The answer is pretty clear to me, either:
- A lot more middle class New Zealand families will be renting their homes in the future (maybe from overseas residents (again a topic for another post))
- A lot more middle class families will be forced to live outside Auckland
- There will be a major correction in house prices as people refuse to pay the unaffordable prices
- Many families will undertake a massive (possibly unsustainable) debt burden that will negatively influence their entire life.
The last point is the one I worry about. What does a society look like where families are toiling under the pressure of their massive mortgages? Unable to take holidays, struggling to put food on the table, unable to even think about supporting their community (either financially or in time)?
That’s why, I would encourage my peers and those just starting out their adult life to seriously think whether the traditional aspiration of house ownership is still relevant.
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Pirámide de backlinks
Aquí está el texto con la estructura de spintax que propone diferentes sinónimos para cada palabra:
“Pirámide de enlaces de retroceso
Después de numerosas actualizaciones del motor de búsqueda G, necesita aplicar diferentes opciones de clasificación.
Hay una forma de llamar la atención de los motores de búsqueda a su sitio web con backlinks.
Los vínculos de retroceso no sólo son una estrategia eficaz para la promoción, sino que también tienen flujo de visitantes orgánico, las ventas directas de estos recursos más probable es que no será, pero las transiciones será, y es tráfico potencial que también obtenemos.
Lo que vamos a obtener al final en la salida:
Mostramos el sitio a los motores de búsqueda a través de vínculos de retroceso.
Conseguimos conversiones orgánicas hacia el sitio, lo que también es una señal para los buscadores de que el recurso está siendo utilizado por la gente.
Cómo mostramos los motores de búsqueda que el sitio es líquido:
1 backlink se hace a la página principal donde está la información principal
Hacemos enlaces de retroceso a través de redirecciones de sitios de confianza
Lo más vital colocamos el sitio en una herramienta independiente de analizadores de sitios, el sitio entra en la caché de estos analizadores, luego los enlaces recibidos los colocamos como redirecciones en blogs, foros, comentarios.
Esta crucial acción muestra a los buscadores el MAPA DEL SITIO, ya que los analizadores de sitios muestran toda la información de los sitios con todas las palabras clave y títulos y es muy positivo.
¡Toda la información sobre nuestros servicios en el sitio web!
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