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.
????????????!
?????? ?????? ????.
operazionispeciali.it/cb-profile/pluginclass/cbblogs?action=blogs&func=show&id=251
Great article! For anyone needing roofing services,
check out Geo Roofing. Marshall Sturgill and his team deliver reliable roofing solutions.
Highly recommend them.
Hello! I just would like to give you a huge thumbs up for the great information you have
here on this post. I will be coming back to your blog for more soon.
Ahaa, its pleasant discussion concerning this piece of writing here at this website, I have read all that,
so at this time me also commenting here.
Left Coast Exteriors, under Cory Goldman’s leadership, is a top choice
for roofing and exterior projects. Their expertise in roofing, siding, and window replacement
ensures your home remains in excellent condition.
I got this site from my buddy who shared with me on the topic of this web page and now this time I am visiting this website and reading
very informative articles or reviews at this place.
Feel free to surf to my blog post … http://superpremium2.premium4best.eu/
Informative post! If you’re looking for roofing services, check
out Geo Roofing. Marshall and the crew provide quality roofing solutions.
They did a fantastic job.
Hi i am kavin, its my first time to commenting anyplace, when i read this article i thought
i could also create comment due to this brilliant paragraph.
my site :: ???????
??????????? ???????????? ??? ???????? ???? ??????????? ???????????? ??? ???????? ???? .
Supporters believe that sex dolls could be beneficial? ?? ?????? for people who struggle with social fears or sexual challenges
????????? ???????????? ????????? ???????????? .
???????????? ??????? ????? http://www.oborudovanie-aktovogo-zala.ru/ .
???????????? ??????? ?????? ???????????? ??????? ?????? .
at 51 sexual encounters a year,?? ??or just less than once a week on average.
Ayisha Diaz, Ashley Allure, Aries Baby Kate, Only Fans Leaks Mega Link Folder( https://UrbanCrocSpot.org/ )
???????????? ?????? https://www.oborudovanie-peregovornyh-komnat.ru .
??????? : ????5?????????????????!
???????????????????????????????????????????????????????????????
??????????????????????????????????????30??????????1000??1000???????1?????????????????????????????????????????????????????????????????????
???????????
???? : RG??
???? : 2019?
???? : ?????(MGA)??????????(BVI)??????(PAGCOR)??????
???? : ????????????????????????????????
???? : 22??????
???? : ???????????
???? : ??15? / ??3-5?
?????? : ??1000-100?
???? : 22??????
???? : ??APP?IOS???(Android)
??????????
???????? ????????
??????NO.1????
??1000?1000??????
???????????
????????????????
??????????
??????????????
??????????????????????????????????????????????????????????????????????????????????????????????????
??????????
???? ????
??????(???7-11?????ok??)
????ustd??
????(??????)
????????????????
??1:1??
??????????
???????????????????????????TLS?????????????????????????????????????????????????????????????????????????????????
??????????????
?????????
??????????????????
?????????
???????????????????????????????????????????????????????????????????????????????????????
????????????????????????????????????????????????????????????
This design is steller! You obviously know howw to keep a reader entertained.
Between your wit and your videos, I wwas almost moved to start my own log (well, almost…HaHa!) Excellent job.
I reawlly enjoyed what you had to say, and more than that, how you prdsented it.
Too cool!
b2B ?????
Hello there! This article couldn’t be written any better!
Going through this article reminds me of my previous roommate!
He constantly kept talking about this. I will send this post to
him. Pretty sure he’s going to have a very good read. Thank you for sharing!
Visit my blog post https://myapple.pl/users/456502-isla-johnston
online casino
??????????? ???????????? ??? ???????? ???? ??????????? ???????????? ??? ???????? ???? .
homosexual porn
You said it perfectly.!
my web blog http://hanchoform.com/bbs/board.php?bo_table=c05_02&wr_id=1231731
Everyone loves it when people come together and share ideas.
Great website, continue the good work!
???????????? ??? ???????????? ???????????? ??? ???????????? .
Remarkable! Its genuinely awesome post, I have got much clear idea
about from this post.
Here is my website; http://superpremium2.premium4best.eu/
??????
???????????? ???????????? ??? ???????? ???? ???????????? ???????????? ??? ???????? ???? .
?????? ????!
??????????? ????????? ??????? ????????? ? ?????????? ????????? ? ??????
diplomyx-man.ru
??????, ??????!
??????? ??????? ??????? ??????? ???????: ????????? ?????
diploms-man.ru
I have read so many articles or reviews regarding
the blogger lovers however this paragraph is genuinely a pleasant article, keep it up.
???????????? ??????? ??? ???? ???????????? ??????? ??? ???? .
Really appreciate you sharing this article post. Keep writing.
??????, ??????!
??????????? ??????? ????????? ????????? ? ?????????? ????????? ? ??????
remotebillpay.com/??????-??????-?-??????-???????????-??
???? ????????? ?????????!.
Thanks-a-mundo for the blog. Really Cool.
Thanks-a-mundo for the article.Really thank you! Really Cool.
Hi! I understand this is somewhat off-topic but I
had to ask. Does running a well-established website
like yours take a massive amount work? I’m completely
new to writing a blog but I do write in my diary on a daily basis.
I’d like to start a blog so I can share my experience and thoughts online.
Please let me know if you have any ideas or tips for new aspiring blog
owners. Appreciate it!
??????!
?? ?????????? ??????? ????? ?????????.
lanouvellemine.fr/???????-?????-??????-??????-????????
???? ??????? ??????!.
Hi there? i am kavin, its my first occasi?n to commenting anywhere,
when i read this ?i?ce of wr?ting i thought
i could also make comment due to this bril?i?nt piece of writing.
bookmarked!!, I like your blog!
?ow, marvelous weblog layout! How lengthy have y?u ever been running a b?og for?
you made running a blog g?ance easy. The fu?l glance of your web site iss magnificent, let alone the
?ontent!
??????!
?????????? ?????? ????????????.
site2.liodiz.ru/2024/07/04/shirokiy-vybor-dokumentov-v-znamenitom-onlayn-magazine
Jasmine Jnad, Fine Ass Arri, Lexi Exotica Only Fans Leaks( https://CrocSpot.Fun )
First ?ff a?l I would like to say terrific blo?! I ha? a quick question ?n wh?ch I’d like to as? if you ?o not m?nd.
I ?as curious to find oout how you center ?ourself and clear your thoug?ts prior too writing.
I ha?e ha? tr?uble clearing my mind in gewtting
my thoughts out. I truly do take ple?sure in writing hwever it just seemss likke the
fir?t 10 to 15 minutes are usuallpy ?asted just t?ying to f?gure out how to begin. Any ideas o? tips?
Appreciate it!
You have made your point quite clearly.!
You are a very smart person! 🙂
Thank you ever so for you blog. Fantastic.
Very good blog.Thanks Again. Fantastic.
payday loan
Appreciate you sharing, great blog.Much thanks again. Cool.