If there is more money available the value of an asset will rise. banks love houses as they are reasonably safe investments. If the value of an asset rises then so does the purchase price. Also , such as in Christchurch, supply and demand have influence pushing the cost of a house up
The accepted ratio for hose to income is around 30% of income. Or something called mortgage stress may occur.
If the income is not matching , you end up with Tokarora (sp) or Hornby !
not rocket science
Stephen
"Look, Madame, where we live, look how we live ... look at the life we have...The Republic has forgotten us."
Bookmarks