Dear Mr Key, NZ house prices are still too high!

In order to stem the flow of Kiwis leaving New Zealand for a better life elsewhere, New Zealand has to actively attract immigrants such as myself from the UK and many other from all over the world, specifically many parts of Asia, Canada and South Africa.

I came to New Zealand as a backpacker in 2003 and got the chance to stay on and gain permanent residency.

New Zealand summers are amazing, the flora and fauna is exotic (compared to UK) and the people are friendly, helpful and overall New Zealand is a very safe country to live in.

There is of course however, no such thing as a free lunch.

New Zealand, like many places does have its "cons" and one of these is the unavoidable fact that NZ has a low wage economy. Jobs in NZ pay far less then their counterparts in other countries such as the UK or Canada and this seems to be generally accepted by many people, because the New Zealand lifestyle is much better and this is what makes up for it.

Or does it?

Yes the Summers are warm and long, eating out is very cheap and petrol costs far less than in the UK, but there is one very important component in the New Zealand lifestyle that remains unattainable for many people including myself.

Owning our own home.

New Zealand house prices, especially those in Auckland are hideously expensive and I have no idea why. Yes many houses in NZ are fully detached, something that people in UK terraced housing can only dream about, but consider this, for approx $350,000 NZD in Auckland you will maybe be able to buy a small 1 or 2 bedroom unit in a decent area. This unit will not be detached (obviously) no central heating or double glazing and may not even have proper insulation.

I am comparing this to two other places that I know very well. Nova Scotia, in Canada and Edinburgh, Scotland. Nova Scotia in particular is also quite a low wage economy and the prices of houses, fuel, food reflect this. Scotland is a high wage economy by comparison and the house prices, fuel, food also reflects it, makes sense.

For $350,000 (approx 131,000 British Pounds or 238,000 Canadian Dollars) you could buy a regular semi detached house in Edinburgh or and incredible 3 bedroom fully detached home in Nova Scotia, Canada both of which will almost always offer solidly built, well insulated and with economic central heating. Take a look at this startling comparison.

New Zealand Average Price in NZD = $405,235
United States Average Price in NZD = $369,839
United Kingdom Average Price in NZD = $347,992
Australia Average Price in NZD = $623,107

I have already ranted on about the need for New Zealand homes to have decent heating and insulation through the NZ winter, see here >>

So, in summary, NZ is exotic to many people, including myself and I love it here, but when it comes to the basics, lets think about it, low wages + high priced housing = more people will be leaving!

John Key, the new Prime Minister of NZ had said throughout his election campaign that the National Party would address the issue of people leaving NZ, I desperately hope that this issue of extortionately prices New Zealand housing will be high up on his list.

(the image is of a fully insulated, double glazed, dry and warm house in Nova Scotia, Canada)

Muzzerino