Duncan Garner: Look at this! This is why home ownership is low

18/03/2014

Look at this folks. This home was sold last week by Mike Pero Real Estate. It’s 93sqm.

It’s pretty tiny, really, and to say it’s a "do-up" is underestimating the work it needs. The bathroom and kitchen need to be ripped out.

Bids started at $500k – it finally sold for $758k. That’s more than three quarters of a million dollars, folks.

Little wonder our latest Census shows home ownership has slipped below 50% for the first time since records were kept. It’s 49.8%, down from 53.2% ownership in 2006.

But for 30-39 year olds it’s way worse. Just 43% of this age group own a home, down from 54.6% in 2001.

Something is wrong. The Kiwi dream of home ownership is slipping away. Maybe the horse has already bolted?

12% of all homes in Auckland are being bought by people living overseas, according to the BNZ’s Tony Alexander. If we don’t do something these statistics will get worse.

Tony Alexander says he doesn’t often dip his toe into policy decisions, but he told me yesterday the time has come to stop this madness. We desperately need decent and reliable statistics to show just how many houses in NZ are sold to overseas speculators. I think it’s more than 12% in Auckland.

These people buying these houses have no interest in NZ except for buying houses to make money. They have seen our loophole, now they're driving their foreign bus through it.

They are cold hard speculators; they do not care for this country. It’s easy for them. No taxes, no stamp duties, no nothing. Easy, easy money, at the expense of Kiwis.

We must send a message that this is no longer OK. They are buying up NZ at the expense of our children and grandchildren. We need more houses, we need supply urgently. We need to free up more land and we need local councils to co-operate on this.

We need to ban foreigners from buying old stock, build new houses if you want to invest here – that’s what happens in Australia. It’s time to stop the madness.

It’s not racist. It’s common sense. Let’s put New Zealanders at the front of the queue and help them, before it’s all too late.

All this week Duncan Garner brings you a special spotlight on the Kiwi housing market - tune in to RadioLIVE Drive from 3pm

source: data archive