09-12-2021, 10:17 AM
Young people are stuffed now. Back when we bought in 2008 we bought a 3 bedroom house in an excellent area of town for $250k, which was easily achievable for a couple on a low income with a small amount of savings $16k (we borrowed off parents instead, to be paid back when house sold). It was just a case of looking around and finding something. It would have been considerably easier about 3-4 years prior, but I wasn't married then.
Now the equivalent house is probably 700k and wages have only risen probably 30% since then. The issue is the house prices are on an exponential curve, so it is extremely difficult to get on the ladder. I have a friend in Auckland the same age as me, married with three kids and I don't see any way that he will ever be able to buy a house. His rent takes most of his wages so he will never be able to save for a deposit, as the house prices are rising way faster than he can save. He's ruined.
Now the equivalent house is probably 700k and wages have only risen probably 30% since then. The issue is the house prices are on an exponential curve, so it is extremely difficult to get on the ladder. I have a friend in Auckland the same age as me, married with three kids and I don't see any way that he will ever be able to buy a house. His rent takes most of his wages so he will never be able to save for a deposit, as the house prices are rising way faster than he can save. He's ruined.