So the reserve bank says prices rising because Aucklanders don’t want development next door to them – translation – the time it takes developers to get consents is awfully long as the RMA process allows anyone to object. Housing minister Nick Smith – says its because land prices have gone through the roof – translation – overseas buyers who have no clue are land grabbing. Master Builders Federation says prices only going up 5% a year – translation YEAH RIGHT.
So what really is this issue – Its mainly because we are too confident – When we and immigrants to Auckland feel our economy is strong and confident then house prices go up. It is impossible in the short term for the government RMA tinkering or Housing Corp strategy or reserve bank comments to have effect. Good on the government for trying to implement medium and long term strategies by freeing up more land and making the process shorter. Although house affordability is off the scale house servicability isn’t – so with a structural change to NZ having lower interest rates means buying may be more expensive ( each week!) however living in the houses is far cheaper than it was decade ago thanks to stable interest rates.
So keep on buying especially Grove Rd (eqgroup.co.nz) as there will not be a cheaper time to buy than now! ( unless you want for the next GFC)