Why housing costs are so ridiculously high

[bogan]

Because there is a government conspiracy to make prices higher in popular areas. Have you not been paying attention?

Obviously, it is to force the plebs into some sort of concentration camp. I'm pretty sure this is the basis behind the housing push in christchurch, move plebs down there, then release the last of the fault line (govt controls these things obviously) and send them off into the pacific.

[flyingcrocodile46]

What I can't understand is, if banks make money out of thin air, why do banks still go broke? That should be impossible.

That's just it. With few exceptions they haven't gone broke. They are nearly all trading insolvent and are being bailed out by politicians who are underwriting their current shortfalls with tax money and the promise of your children's and now grand children's tax money.

They continue to either directly (or indirectly through targeted market lending) manipulate markets and commodities, inflating prices to provide exceptional short and medium term returns. However it ain't anywhere near that simple either as there are are shitload more factors at play than anything covered here. I can't explain it to anyone. You have to get out there and research it.

If you want links I can help, but I ain't breaking it down for anyone. It takes too damn long.

[flyingcrocodile46]

I don't think crocs ever heard of supply and demand. Why do you think there is such a huge price difference between Marupara and Devonport property?

Oh Puleaze... If it ain't an abundance of debt (money from thin air) that causes the demand (On a market wide basis) just exactly what do you think does??

[sidecar bob]

I'm prepared to bet half a dozen apples that the OP rents a house & doesn't own any property.
It just seems to fit really.

You haven't answered, but I'm right aren't i?

[sidecar bob]

Oh Puleaze... If it ain't an abundance of debt (money from thin air) that causes the demand (On a market wide basis) just exactly what do you think does??

No, it's all the Asian immigrants buying the property that causes the demand.

[flyingcrocodile46]

Because there is a government conspiracy to make prices higher in popular areas. Have you not been paying attention?

Fuck! You people are thick. It's the central banks doing it, the govts go along with it because they are made up of shallow fools who's thought process is limited to the opportunities of self promotion and ability to buy votes for the next elections.

[bogan]

Oh Puleaze... If it ain't an abundance of debt (money from thin air) that causes the demand (On a market wide basis) just exactly what do you think does??

Is the debt owed back to the thin air then?

[jasonu]

It's a conspiracy...

There is a lot of that going around (this forum).

[jonbuoy]

Oh Puleaze... If it ain't an abundance of debt (money from thin air) that causes the demand (On a market wide basis) just exactly what do you think does??

No it's a high demand and short supply of houses that cause high prices. The bank just offers you a way to buy one.

You do know the seller sets the price of the house? Retirees with no mortgage can sell for as little or as much as they like.

[sidecar bob]

No it's a high demand and short supply of houses that cause high prices. The bank just offers you a way to buy one.

You do know the seller sets the price of the house? Retirees with no mortgage can sell for as little or as much as they like.

The seller sets the price?? That's a novel yet boring theory, but quite plausible. I think they do it differently on Mars from what I can gather though.

[mossy1200]

Lets shake everything up and dump the market so the ones that saved a deposit and bought a house in the last 5years owe more than the house is worth. Punish them for saving for their home.

I think its more a case of too many people taking on finance for luxury items like phones, interweb, gadgets, vehicles, hookers and fast food so they don't save for a house.
If you think you need own a house but your income or combined income cant fund it upskill or move. You don't need to live in Auckland you choose to live in Auckland. Auckland prices are high because too many people seem to WANT to live there.

[mossy1200]

No it's a high demand and short supply of houses that cause high prices. The bank just offers you a way to buy one.

You do know the seller sets the price of the house? Retirees with no mortgage can sell for as little or as much as they like.

????

Person with the highest and best offer will set the price in most cases surely.

[yokel]

Because there is a government conspiracy to make prices higher in popular areas. Have you not been paying attention?

No, the government conspiracy is that they want more people renting rather than owning their own home, that should be pretty obvious.

and when people start using their kiwi saver for a deposit, that will keep the house prices rising.

the government likes people that need them.

[Woodman]

No, the government conspiracy is that they want more people renting rather than owning their own home, that should be pretty obvious.

and when people start using their kiwi saver for a deposit, that will keep the house prices rising.

the government likes people that need them.

Why do the gummint want people renting?

[Ocean1]

????

Person with the highest and best offer will the price in most cases surely.

Correct.

Which is more than the basis for this thread can claim. Housing in NZ is not, in fact any more expensive that it's ever been. That's if we're comparing apples of course. Hrs worked on an average income per square meter of house is pretty much the same now as it was in granma's day.

The difference in purchase price is almost exclusively down to the size. NZ houses are fucking huge, more than twice the size of gran's and twice the size of the average in the western world.

Now, how desperately poor are we that we can apparently afford a level of luxury well beyond that of our grandparents?