Housing Slump Begins

The sun sets on a gloomy Sunday for home owners, waking up to the headline in the Sunday Star times Snapshot of a Slump about as catchy as a New Zealand Headline gets! It is actually no laughing matter, people will lose money

ANZ National Bank chief economist Cameron Bagrie said the market was 25-30% overvalued which meant it would take about five years to correct. This year's expected tax cuts would not make a dent in mortgage repayments, he said.

A 30% drop in the value of a home is major. This fact that

With households spending $1.14 for every $1 they earned they would need an "astronomical" tax cut to feel comfortable about rising mortgage rates and increases in living costs.

Will mean a considerable lowering of the standard of living as people struggle to cope. All set against a background of rising costs of utilities and fuel. Personally I'd say the picture isn't great.

But you know you have to analyze the reasons for coming to New Zealand. Was it to make money, to live like a king, to be as consumerist as you were in your former life. Probably not, the scenery, the pace, the wide open spaces, the water none of these things are going away.

Living a simpler live being content to just B. Finding a voice and using the basic right the greatest human gift, choice. (Yes I am reading the 8th habit!)

For those of us here already if may be a little interesting, for those thinking of coming it may be an opportunity. If you market doesn't decline at the same rate you should get a great deal if your buying in a year!

Becca noticed to day a huge number of new homes to the market in Devonport, people trying to beat the worst of the downturn.

Their is an upside always!