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The Pencilsword: Rent rage

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29 comments

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Joe Publicabout 1 year ago

Great cartoon

Half the problem is miss information by the media including this unfortunately

The LINZ report gave us all the information we need. It is just how nz media choose to report it which is the issue.per the LINZ report
- 4% buyers non resident
-35% buyers temp visa workers and foreign students.
Total foreign buyers 39%

In Australia foreign person refers to non resident + foreign students + temp visa workers. So in the above example 39%.

The recent stamp duty in Australia is applied to foreign persons. So 39% would pay the tax. So gore is similiar in that permanent citizens pay less than everyone else.

In nz for some bizzarre reason the media go on about non residents only. The true amount of foreign buyers should include temp visa workers and foreign students. 39%
Foreign students and temp.visa workers are not permanent citizens so why do they have equal right on property purchases.

A 15% stamp duty on foreign persons would benefit nz in 2 ways
1. Reduce demand dramatically from one of the largest group on buyers
2. Any tax collected can help pay for the infrastructure NZ so badly needs.

I would apply the same amount of stamp duty in investors who make up 46% of buyers.

Madness that so much demand coming from these two groups no wonder FHBs are struggling and prices are so high. Nz has the lowest property purchase tax in the world . Zero%.

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Night Busabout 1 year ago

Belgium has the highest property taxes in the world so why are houses in Brussels worth so much more than the rest of Belgium?

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Kimuchover 1 year ago

This is nonsense. Stop using made up facts to fuel people's anxiety.

The LINZ report states:

Between 1 January and 31 March 2016, 3 percent of transfers involved buyers who indicated an overseas tax residency. Of the remaining transfers over this time:

Fifty percent of transfers involved buyers who have only New Zealand tax residency.
Thirty-seven percent involved buyers who did not need to provide tax information – the majority of these were New Zealand citizens or residents who were buying their main home.
Ten percent involved buyers who did not need to provide information because their sale and purchase agreement was signed before the law came into force.

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Kimuchover 1 year ago

Spreading false information like this just fans the flames of xenophobia and ignorance. Get your facts straight.

The LINZ report actually states:

Between 1 January and 31 March 2016, 3 percent of transfers involved buyers who indicated an overseas tax residency. Of the remaining transfers over this time:

Fifty percent of transfers involved buyers who have only New Zealand tax residency.
Thirty-seven percent involved buyers who did not need to provide tax information – the majority of these were New Zealand citizens or residents who were buying their main home.
Ten percent involved buyers who did not need to provide information because their sale and purchase agreement was signed before the law came into force.

Next time you want to try and blame foreigners for our problems why not do your homework first. Our housing problem is a result of antiquated tax incentives and a lack of vision from both national and regional leadership. They are the ONLY people we should be pointing the finger at.

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Trevor J about 1 year ago

Right on Joe ...foreign students and temp visa workers are just proxy buyers for their rich folks or connections back home. There is so much liquidity (some of it dirty money) looking for a home in China it could eat the available NZ housing stock overnight. Double down on this with on the mutual PONZI scheme of NZ speculators and investors bidding up prices and flogging them to each other ..and until recently with b...all restraint from banks ..... we all know whats happening. But these individuals are not to blame ...money is like water flowing to point of least resistance .....its our government local and central who have been asleep on the wheel on this for the past couple of decades. Its their role to create the policy settings that promote social equity and reasonable access to housing. The bstrds now say they want house prices to stabilise - not go down. Who are they protecting. Never been angrier in my life with the sleep walkers in the Beehive. What a pathetic lack of foresight they have displayed. The squeeze on savings and discretionary spending accompanying excessive rental and housing costs is a disaster for the real economy. Key et al can take their GDP % growth they fall back on all the time and got to hell. Disgraceful!


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George Lakingabout 1 year ago

This situation has a side that is truly evil, namely when children's health is ruined for the rest of their lives by overcrowding in damp cold houses. For example rheumatic heart disease, asthma and bronchiectasis. It is a situation for which the upper echelon of political influence bearing society in NZ holds complete responsibility. NZ property wealth is directly answerable to young people with wrecked hearts and wrecked lungs. See http://www.healthyhousing.org.nz


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Stephanie Cabout 1 year ago

What an amazing piece of commentary. Sobering stuff and so brilliantly conveyed.


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A JOE PUBLICabout 1 year ago

{ FRACTIONAL RESERVE LENDING }, FIND OUT WHAT THIS IS MEANS ? THE BANKS CREATE THE CURRENCY OUT OF THIN AIR , YOU PAY IT BACK IN REAL MONEY AND INTEREST THAT YOU GO AND WORK FOR , FOR THE REST OF YOUR WORKING LIVES , SHIT YOU THINK WERE NOT ENSLAVED , AND THE GREAT PART IS YOU CAN NEVER EVER REPAY THE THE DEPT, IT ALWAYS GET PASSED ON TO OTHERS { FIND OUT HOW CURRENCY IS CREATED}
SPECULATORS DON'T CARE WHAT DEPOSIT IS PUT ON BORROWING ITS A BUSINESS , NEGATIVE GEARING , THE END USER THE RENTER WILL PAY , THAT'S THE WAY IT WORKS , CAPITAL GAINS TAX SURE ,WHO IN THE END PAYS ITS ALWAYS THE BOTTOM FEEDERS YEP , INFLATION THEY SAY , DO YOU REMEMBER A TIME WHEN THAT WAS A DIRTY WORD AND GOVERNMENTS AVOIDED IT AND ELECTIONS COULD BE WON OR LOST ON THE VERY SUBJECT , NOW THEY SAY WE MOST HAVE IT 2 - 3 % NO ITS MORE THAN THIS DO THE SHOPPING EACH WEEK ETC , WHAT THEY ARE SAYING IS WE NEED TO PAY MORE FOR EVERYTHING, REALLY IS THAT WHAT WE WANT YOU AND ME TO PAY MORE FOR EVERYTHING ,THE ECB ,JAPAN AND OTHERS ARE NOW IN NEGATIVE INTEREST RATES SO WHERE WOULD YOU PUT YOUR MONEY IF YOU HAD SOME , MAY BE YOU WOULD INVEST IN NZ OR VANCOUVER OR LONDON OR SYDNEY CHEAP MONEY BIG PRICES BIG RENTS

JUST A THOUGHT

A JOE PUBLIC


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Torfrida Wainwrightabout 1 year ago

Great cartoon summary of the housing crisis. Pity the casual dig at green lifestyles, given the Green Party is the ONLY political party to come out with a plan and an intention to make house prices drop from 10 X average income to 3 x average income

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Shifty Girl4 months ago

Its more of a dig at faux green lifestyles.


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Jo Squiresover 1 year ago

Night Bus, I live in Christchurch and I dob't want to own a house here because our average house sucks, may have hidden earthquake damage, or be on dodgy land. There might be another earthquake that wrecks your "new" house. You might get the current earthquake claim handed on to you as part of the purchase with all the palaver included. There are lots of homes sold "as is, where is". Property sellers actually write that on the advert.

Last time I looked, the average rent was about $400 a week for a two bedroom house, most of which are terraced and therefore tiny. Most of our jobs are for building or roadworks, which I would not move for if I had an office job. Our power bills are also higher in the winter compared to Auckland, because it is colder, but our houses are no better insulated.

These are all good "other reasons" to not live here, but you make it sound like people are acting spoilt. I stay for my friends, who are the best I have ever had, and I don't think I could build the same community elsewhere.

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Night Busabout 1 year ago

So if you didn't have your friends you would move to Auckland? And what if there is a volcano in Auckland? Would that be as bad as the unexpected earthquake in Christchurch or not as bad?


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mc peatabout 1 year ago

Hi Toby,
The way you pay rent when you're 80 is to build a financial asset base that will (by then) provide you with enough income to pay the rent at that time. A financial asset base consists of term deposits, mutual funds, ETF's, shares, bonds, perhaps some commodities such as gold or silver . Raise your Kiwi-Saver to the maximum level.
A financial adviser may well be very useful once you move into shares and bonds.
These financial assets are all available to you now and while it is true that these are moderately expensive as well (QE has had a big impact) it is Auckland property prices that are very expensive and do not provide good value at this point.
Enjoy the benefits of tenancy such as no maintenance, flexibility, no crippling deposit (apart from a bond), no exposure to interest rates (they will rise one day).
Don't let house prices prevent you from building your asset base other than by paying off a mortgage.


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Raena Jackson-Armitageover 1 year ago

People DO move to other places. Then those places' prices hike up too. Don't believe me? It's already happening just over the Tasman.

That's to say nothing of the enormous amount of luck and/or privilege you need to "just pick up and move!" I'm lucky that I have a career and skills I can take to lots of places, and that moving for me was relatively cheap -- no family to pack up and move, no household full of furniture. I can even do a lot of work remotely so I could literally live in the middle of nowhere as long as there's an internet connection. But for some people the jobs that they can do really *aren't* available anywhere. It's a naive position to take and shows no more insight than Toby's relos.


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Michael Logieabout 1 year ago

I'm pretty sure my personal opinion on the housing crisis is as insightful as every other non expert that reads the paper. Instead im Commenting to say that you are once again spot on with this comic Toby. SPOT ON! Thanks for your great work.


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MissFCabout 1 year ago

Thank you for making this. It's true and brilliant ... and I'm vaguely concerned you may have been watching my family dinners through the window given I can relate to every word. Exasperating.


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Duncan Lucasover 1 year ago

Night Bus - I'd move in an instant out of Auckland, if I could be guaranteed a job that paid me an equivalent wage to that I'm getting now. I'll take a hit for a more sustainable and cost-effective lifestyle, I understand the 'provinces' don't pay as well - but here's the thing, I've spent my working life building a career in a specialty which offers very little in the way of opportunity outside a major urban centre.
What am I going to do?
Go labouring and be even worse off, IF there's work?
Work on a farm or in forestry, without any of the additional 'training' that seems to be demanded these days..?

I'll move, just let me know where the 'jobs' actually are...

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Night Busover 1 year ago

That's right. You'll find that the unemployment rate is actually lower in many places outside Auckland for instance:

"The Bay of Plenty had a significant drop in its unadjusted unemployment rate over the year – down from 7.8 percent to 5.1 percent, making it the region with the lowest unemployment rate in the North Island. "

http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/LabourMarketStatistics_MRMar16qtr.aspx

But when it is pointed out that other places have more jobs not less then people say 'I don't want to do those jobs'

The easy way to make house prices go down in Auckland is to not let immigrants settle in Auckland.

but people don't want that either because then Auckland would stop being a vibrant international city.

What people want is a traditional kiwi lifestyle, detached house, in Auckland but without urban sprawl and nice manageable traffic. - Well you can't have it all.


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Sarahover 1 year ago

Toby is such a great cartoonist and this is a scary, well articulated illustration of the situation for people, particularly in Auckland. In my own situation there was no way my partner and I could have afforded to buy a home without help from family and that was in Wellington and that was over two years ago. I don't think we would be in a position to buy a house now in Wellington because the prices have risen so much and it has become so competitive. If we were trying to buy in Auckland it just would have been impossible, even with help. Surely something has to give and the market will have to crash. As reported in the media it is already becoming evident that people are leaving Auckland to be able to buy a home elsewhere and this is resulting in a shortage of skilled, middle-wage specialists such as nurses and teachers. How bad will it have to get before something changes?


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Lee Apadamabout 1 year ago

AND, why isn't there a programme to run alongside "Renters" titled "Landlorders". There are 10 LOUSY, STINKING, GREEDY, TIGHT-FISTED LANDLORDS for every ONE lousy tenant!!! :O....Think I'll contact John Campbell.........


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Night Busover 1 year ago

Here's the problem: Auckland. Why does everyone have to live in Auckland? Why not Otago or Southland ...or Northland? That's when people say there are 'no jobs' in those places. But have they ever tried to get a job in a place where house prices are less than half Auckland prices?

For instance there are 2814 jobs listed in Canterbury so there's just as many jobs per head of population and the median house price is $450,000 (about half of Auckland) but people don't want to live there for other reasons.

Here's the real issue - people want to live in Auckland because friends and family may be living there or cultural opportunities. People want specifically for Auckland to get cheaper while the population is growing from immigration.

It would be the same issue if you moved to London or Los Angeles or Sydney or Queenstown or anywhere where alot of people want to move to. How to solve it? Move somewhere else.


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John Buttabout 1 year ago

Intergenerational beatups are not going to solve the problem, provide an honest interpretation or indeed reach the truth.

Speculators come in all sizes, Auckland has more than enough houses, but high rent and high house prices - go figure.


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Jerzy Kaltenbergover 1 year ago

Recent immigrant (9 years in nz) . I arrived with 0 in savings, have the same job I had when I first arrived (it/engineering, not in management). Am supporting a family of 4 on my income alone, 2 school age kids. 5 years ago I bought a house for just over 400k with kiwisaver + less than 6 k savings. It can be done. Sure, I rode a bicycle to work, didn't holiday in Raratonga, cooked instead of going out. Also, I bought a house in Welly, not Auckland. Cut your ambition to your means. Gtfo of Auckland or get used to renting.

P.s. the housing situation isn't going to get better. Population is growing, but we're not making more land.

Jk

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Shifty Girl4 months ago

AKA "It worked for me so why can't it work for you?"
Smug and irrelevant.


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David Thomsenabout 1 year ago

My feeling about this topic is not so much anger as resignation. However, I don't live in Auckland and never intend to, so my prospects are slightly less bleak.

This site still allows comments? I thought that was going out of fashion.


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Ryan Johnson11 months ago

Brilliant cartoon, really hits home. Mc Peats comment below mine is informative. While owning a house can be a great way to build wealth, it's not the only way!

If renting is cheaper, you can save and invest what's left over. I've written about how society pushes everyone into buying a house and it's not always the best decision.

If you're young and struggling with the rent buy dilemma, I think my article would really help you. http://ryanjohnson.co.nz/dont-need-house-20s/


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Ted Campbellover 1 year ago

It's the same around Vancouver B.C. Canada. Chinese are buying up everything in sight. So many complaints from citizens last week our Prov. Gov't passed a 15% penalty on foreign buyers. There is also a rental crisis, hundreds of condo's are owned by non residents and vacant most of the year but absentee owners will not rent. Support staff in stores and cafe's cannot find a place to rent, if something comes available the land-lords have so many applicants it takes days to sort through them. The Fraser Valley is the most fertile land in Canada, even raw land is being purchased by non-residents then left. This is NOT an investment to build or farm, it is "money parking" We can't find a place to live, before long we won't have farm land to grow food. Canada is in deep trouble.


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James Abbottover 1 year ago

Hi folks, its been a while. I am seeking a list seat in the 2017 election. I am hiding out in Hong Kong and expect a change of New Zealand government, infact I don't believe John Key will want another term. If there is an opportunity for me, it will depend on *you*. I will do whatever it takes for the campaign but I am opposed to the status quo. I believe in change. Perhaps my best opportunity has yet to materialise.

http://www.newshub.co.nz/politics/eu-considers-blacklisting-nz-over-tax-laws-2016080116#axzz4G3igeB1o

@AbbottMaverick
Ex Internet Party Executive committee
Labour Party Member

Uberinventor first mobile ride sharing platform. Serial entrepreneur: NZFOSS, Payments, Mobile, Privacy, Social, RiseConf, VR, InternetMana, PokemonGo'07, ETNUI


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John Hutchesonabout 1 year ago

Drawing the home owning property speculating landlord types as characters that would weight 40-60kgs heavier in the real world would add to the statement about their privileged position. Some feline features would triple the statement. Nonetheless it is still a powerful statement.


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Countrymanover 1 year ago

It seems to be a given that cities must grow and grow beyond a sensible size while many smaller towns would be better with some population growth. Many occupations can now benefit from the Internet: even, perhaps, the production of cartoons, which can be drawn anywhere from Cape Reinga to Stewart Island and transmitted to editors within seconds!
Government does not seem to have done anything to plan the optimum sizes of cities, towns and even villages throughout the country, together with the communication infrastructure which they need. Instead we have "market forces" with the unfortunate results which we all know.


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M Thomasabout 1 year ago

this is awesome


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Samuel Conaglenabout 1 year ago

well done toby!


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ForeignKickerover 1 year ago

The house prices in Auckland will crash, the current setup is completely unsustainable and the longer it goes on the worse the crash will be.
What is vitally important is that people who do not own houses must not let the Government bail out the homeowners. If this happens then those who have made risky investment decisions and benefitted from the suffering of others will be able to lock in their gains forever and permanently lock out those at the bottom.
The other danger is that the Government may bail out the banks which will let CEOs and directors, who have knowingly handed out unsustainable loans, retain the benefits of profit stripping to their parent companies in Australia all the while earning millions of dollars for the privilege of making New Zealand a worse country.


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Rafabout 1 year ago

I think Duncan's right. It's time to give up on Auckland. Get your whole gang to pitch in together and move en masse to another city. Start out all stuffed in the same big house, live off WiNZ and scatter as you find jobs and somewhere you can afford. That's what I say. The new pioneers!


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Lynnette Williamsabout 1 year ago

Excellent.


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Kumara Republicabout 1 year ago

Generation Rent, meet Generation Rentier.


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kat7 months ago

"upgrade to free range eggs", seriously! humane treatment of animals is not frivolous excess akin to artisan/luxury products.


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