Forum Home
PC World Chat
 
Thread ID: 63485 2005-11-11 05:09:00 Government intervention in the housing market. martynz (5445) PC World Chat
Post ID Timestamp Content User
403464 2005-11-11 22:27:00 How many people remember the time when the rough rule of thumb for a mortgage was 21/2 your annual income. Apply that now in NZ; average annual income is $40,000, X 21/2 = $100,000. Where can you buy a house for that?
As for estate agents, I sold my house in the UK, in 2003, and paid 1% commission. Here it can be 41/2% to 5% and advertising costs. Don't tell me that the greedy bastards don't benefit from soaring house prices.

Martynz
martynz (5445)
403465 2005-11-11 22:33:00 You can buy a house for under 5 grand in Patea.

That aside, There are many places around NZ were you can live, the world doesnt finish on the ourskirts of Auckland.
Metla (12)
403466 2005-11-11 22:41:00 I'm going back a bit now, but in the UK, the major source of lending for house purchase was by way of the building societies, an almost unheard of institution here.

That's right, for average Joe Bloggs, 90% maximum mortgage with house value not exceeding 2 1/2 times annual salary/average earnings. Usually any wifes earnings was not counted, as it could not be relied on to continue.

Here banks and others are desperate to lend, that why there tends to be so many mortgagee sales.

The alternative formula was annual repayments (from memory) not to exceed 1/4 of income.
Terry Porritt (14)
1 2