29 July 2004

Home Ownership - The Impossible Dream

New Zealand First housing spokesperson Brent Catchpole says too many Kiwis are being denied the opportunity to purchase a home in the wake of ever-increasing property prices.

Mr Catchpole’s comments follow the release of a report stating that the recent increases in the cost of land over the past 10 years has meant that to qualify for a mortgage, household income had to increase $2890 for every $10,000 increase in housing costs.

The report also states that affordability had reduced most significantly for renters, especially in Auckland.

“The dream of home ownership for many seems to be slipping further and further out of reach. New Zealand is facing a housing crisis and the number of people who cannot afford to own their own home is increasing all the time,” said Mr Catchpole.

“The rising student debt, rising interest rates and the influx of immigrants into this country has meant that housing prices are escalating beyond reasonable expectation, and the incentive to save for a house is disappearing.

“Now the home, the basis of family life, is becoming a luxury, which low income earners will never be in a position to afford. Instead, they will spend their lives struggling to pay for someone else’s property,” said Mr Catchpole.

ENDS

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