You have to live somewhere though, and in NZ cities rents are high enough that they prevent many renters from saving any money at all.
So, no, supply and demand theory kinda doesn't stack up when it comes to housing.
So, no, supply and demand theory kinda doesn't stack up when it comes to housing.
https://www.trademe.co.nz/property/residential-property-to-r...
Should be able to save $450 a week out of that. After 3 years that's $70k, a 20% deposit on https://www.realestate.co.nz/3341361, with a mortgage then costing about $330 a week.
The problem people who complain about house prices seem to have is that they want to live in very specific and desirable locations (Certain parts of Auckland for instance). There is a high demand for these locations, therefore price is high. But clearly the price is reasonable as people can afford to live there, otherwise they wouldn't pay the rent/mortgage.
When people stop paying high prices for rent in aukland, and instead live elsewhere, then companies in Aukland will have to either
1) Relocate to cheaper locations to attract staff
2) Pay staff more so staff can live in the area
It's the same the world over. You can buy a house in the UK half an hour out of two major cities for £125k. That's a £7k deposit (£44/week or £190/month for 3 years) and £550 a month after that.
If you can afford £600 a month for housing costs (£400 rent plus £200 deposit), you can rent for 3 years, then buy, within 35 minutes of Leeds and Manchester. Minimum wage is about £1200 a month after tax.