Increasing House Prices
The following letter appeared in the local paper today - and BELOW it is my reply:
Why should there be 1 interest rate on mortgages when we have varying tax rates depending on income?
If investors and developers and those earning over $100k paid a rate of 10% interest, and those earning less than $100k (what $99k? - sorry, my question there!) either with a current mortgage or buying their first home paid say 5%, house prices would be irrelevant to a certain extent because the killer for people on low incomes is the extortionate interest.
Low incomees could afford a house because the payments would be more affordable, and developers/investors would be more disadvantaged and so encouraged to spend their money elsewhere.
We both work full time to pay our mortgage on a house in the lowest end of the price bracket and yet pay nearly 50% of our income to the bank (yes, and the other 50% to the IRD - sorry, me again!)
*******
I do sympathise with this person, and their observations may be correct in relation to the interest, but I do believe their solutions are severely misguided - It just seems all of a sudden people are looking for a scapegoat to blame the high and increasing cost of housing on, and they see developers and think - ooohh, nasty capitalists making lots of profit - lets blame THEM!
But WHO has made it NECESSARY for them to ask higher prices for their developments?
COUNCILS and LOCAL BODY BUSYBODIES!
The high cost of housing has arisen for various reasons, amongst which are.
The RMA
School Zoning (dictated by . . .?)
Council compliance costs (dictated by . . . ?)
Consent fees
Land use restrictions (dictated by . . . ?)
- that's my take on the situation anyway
*****************
My Letter in reply:
Somebody give one moral reason why I (or you), should be FORCED to pay more tax or interest than K Tindall just because I/we earn more than him/her? This kind of thinking smacks of communism - ie “(take) from each according to his ability, (give) to each according to his need.” It intimates that the pursuit of money is wrong! Socialism APPEARS to be a selfless economic theory, however those who subscribe to it tend to be envious of those who have what they do not! Capitalism however is a theory based upon human nature - especially selfishness. Individuals look out for their own interest to make money. Those who cater to the selfish needs of their customers are the most successful. Customers look out for THEIR selfish needs by searching out companies that have the best services or prices. It is THIS kind of selfishness that drives property developers to supply the market with the houses we so badly need. Making things harder for THEM will drive house prices even HIGHER. Councils are making it harder for them to build houses because THEY can’t keep up with infrastructure demands! I say make it easier - FLOOD the market with houses, sack the busybodies (and zoning while your at it) - and watch the FREE MARKET and competition dictate TRUE market prices.
Why should there be 1 interest rate on mortgages when we have varying tax rates depending on income?
If investors and developers and those earning over $100k paid a rate of 10% interest, and those earning less than $100k (what $99k? - sorry, my question there!) either with a current mortgage or buying their first home paid say 5%, house prices would be irrelevant to a certain extent because the killer for people on low incomes is the extortionate interest.
Low incomees could afford a house because the payments would be more affordable, and developers/investors would be more disadvantaged and so encouraged to spend their money elsewhere.
We both work full time to pay our mortgage on a house in the lowest end of the price bracket and yet pay nearly 50% of our income to the bank (yes, and the other 50% to the IRD - sorry, me again!)
*******
I do sympathise with this person, and their observations may be correct in relation to the interest, but I do believe their solutions are severely misguided - It just seems all of a sudden people are looking for a scapegoat to blame the high and increasing cost of housing on, and they see developers and think - ooohh, nasty capitalists making lots of profit - lets blame THEM!
But WHO has made it NECESSARY for them to ask higher prices for their developments?
COUNCILS and LOCAL BODY BUSYBODIES!
The high cost of housing has arisen for various reasons, amongst which are.
The RMA
School Zoning (dictated by . . .?)
Council compliance costs (dictated by . . . ?)
Consent fees
Land use restrictions (dictated by . . . ?)
- that's my take on the situation anyway
*****************
My Letter in reply:
Somebody give one moral reason why I (or you), should be FORCED to pay more tax or interest than K Tindall just because I/we earn more than him/her? This kind of thinking smacks of communism - ie “(take) from each according to his ability, (give) to each according to his need.” It intimates that the pursuit of money is wrong! Socialism APPEARS to be a selfless economic theory, however those who subscribe to it tend to be envious of those who have what they do not! Capitalism however is a theory based upon human nature - especially selfishness. Individuals look out for their own interest to make money. Those who cater to the selfish needs of their customers are the most successful. Customers look out for THEIR selfish needs by searching out companies that have the best services or prices. It is THIS kind of selfishness that drives property developers to supply the market with the houses we so badly need. Making things harder for THEM will drive house prices even HIGHER. Councils are making it harder for them to build houses because THEY can’t keep up with infrastructure demands! I say make it easier - FLOOD the market with houses, sack the busybodies (and zoning while your at it) - and watch the FREE MARKET and competition dictate TRUE market prices.
posted by The Tomahawk Kid at 10:50 pm
1 Comments:
I believe its a cycle that after every five to six years or sometimes even less prices tend to reach either at their maximum or at their minimum level.
Post a Comment
<< Home