Sunday, September 30, 2007

Rent Rage

This story is from New Zealand.

Rent rage in tight housing market
The issue of first-home buyers literally being shut out of home ownership has been a hot topic this year. Only last month a home affordability survey found that, in Auckland, almost 100 per cent of a single median-income was required to afford the mortgage on a median-priced house. In Wellington, it was more than 80 per cent.

Assuming I'm doing the math right, 100% sure doesn't leave a lot for other things, does it?

Allrealestate's general manager Shaun Di Gregorio said rent was becoming the country's new "dirty four-letter word", and there appeared to be a deepening social divide between those who owned homes and those who did not. "As house prices have accelerated, people are starting to feel trapped in the rent world."

One key to a happy nation is to keep the currency stable. Just a theory.

This post was inspired by a comment left for me anonymously.

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