This endless housing crisis.
Yesterday I saw this article on stuff: https://i.stuff.co.nz/business/118831756/rising-regions-make-nzs-housing-market-less-affordable.
I encourage you to have a read.
Quite frankly – where is the leadership and common sense to fix this problem? We seem to be 'going around and around in circles' with no clear direction from anyone on providing solutions to reduce the impact this issue has on hard working New Zealanders – whether that be the past or present governments, local councils or the reserve bank for that matter.
Once you have read the article, then refer to this quote.
"All kiwis want is someone to love, somewhere to live, somewhere to work, and something to hope for." – Norman Kirk. 29th Prime Minister of New Zealand.
Here are two questions for you to consider. • Why are we so accepting of this issue and the lack of action which affects us all in different ways? • What example are we setting for future generations who hope to buy a home and potentially raise a family?
This problem is far more reaching than most people wish to admit. It is so much bigger than about paying the mortgage or rent payments. This problem creeps into every aspect of our lives – our general health and well-being, our personal and professional relationships which affects our productivity within New Zealand.
Most people I know personally put a very brave face (a mask) to the outside world that all is well. They spend money as if there is no tomorrow. For many of us, our financial security is built on sand as is our unsustainable housing market.
Many people I know think nothing bad will happen to them – i.e.: 'They are Bulletproof'. They make a decent income and can pay their mortgages or rents along with other general household, personal commitments and luxuries. Life is great. But we never know what is just lurking around the corner to 'knock us off course'. Our personal circumstances can change very quickly due to the loss or death of a partner, a job or even ill health.
I would put money on it, that most people don't have much put aside these days for a rainy day due to the constant increase in the cost of living and household incomes not keeping up with this. I often ask people if they lost their job or became ill how long would it be before they got into financial trouble. For many, this is as little as 6 to 12 weeks.
In our view, we are the current guardians of New Zealand and it is our job to hand it over to the next generation in better condition. We also owe it to ourselves to focus on creating a better New Zealand where people feel valued at work, happy at home and within the wider communities they live in. We need better work/life balance where both parents aren't having to work every hour to bring enough income in to pay the bills. Our families deserve better. We deserve better.
Think about the middle-class Kiwis which includes our teachers, nurses, firefighters, police officers, social workers as Hugh Pavletich talks about in this article. We all rely on these people at some point in our lives – in fact we expect their help. What if they can't afford to live in the main centres or regions – then what do we do. Don't these people deserve to earn a decent income considering how dependent we are on these amazing professionals?
You may now be thinking – hey it isn't my problem. But what about your kids, your parents? Are you prepared to help your kids get into a house? To pay household bills for them if they get into financial trouble? What about the older generation who believe that their homes are their retirement fund or are asset rich – but cash poor?
We all know at some point the mortgage interest rates will start to rise. Just think what a small increase would do to the monthly cost of servicing a mortgage or rent per household. Where will this extra income come from?
I want my kids to be able to earn a good living, be happy in life and be able to buy a home of their own when the time is right. I would love them to stay in the same city location as us – especially if and when they start their own families. We want to support our kids and develop a great relationship with our future grandchildren.
Family is important. Families should not become disconnected due to housing costs in many of our cities where many of the jobs are located.
This article explains it very clearly and I believe the problems are linked to the following:
• The past and present governments (National turning a blind eye to a growing housing problem for 10 years) and recently Labour talking it up with very little action – i.e.: kiwibuild.
• Those in charge have been extremely complacent in not putting procedures in place to prevent this problem growing to the level that it has become.
• Local council inaction regarding land release and building the necessary infrastructure required.
• People's inability to increase their household income to keep up with inflation as this goes hand in hand with mental and physical well-being of people and their families.
In the end, none of us win. Unless somebody with clear direction and leadership skills comes forward and takes this issue on for all the right reasons – nothing is going to change for the better. We will continue to spiral out of control down a deepening hole in the same vane which means we and future generations will suffer even more. Not a pretty picture or anything to be proud off.