I disagree, government schemes to help first time buyers just inflates the bubble more leading to a more unsustainable situation where the government will constantly have to assist. What we need is government schemes to increase house building thus reducing the under supply and naturally correcting the imbalance.
How do govt schemes inflate the bubble? Reducing the defecit in houses is ideal but because the new houses being built are disgusting quality and for their acreage, volume and price this is what I think is inflating the bubble. It doesn't help that the a large proportion of the money in property goes straight back to those that own multiple properties, because they have two or three houses and rent them out at astronomical amounts. Maybe we should be stopping people from owning multiple homes (unless they are barred from renting them)? Estate agents fees are disgusting too, the whole market needs better regulation. The people that own all the property aren't people renting to cover the mortgage and looking after their family, they are actively making a mint off the poor folk that can't get a mortgage. If it was potentially possible for everyone to own their own property without having to buy some piece of sh*t new build I don't see how it would be inflating at all.
Suddenly NZ is actually looking like a more attractive prospect for me if I ever want to own my own home.
