I don't know if that's a symptom of a wealth gap or something else. What ever it is it's a real issue. I personally think prices are inflated by low interest rates and the bubble is going to pop at some point.
We've been saying that for 15 years though.. Sure the interest rates are rock-bottom right now but still most of our countries main investment is property. Until there's legislation to control rent or tax land, I think we're up shit creek.
Thank God you guys have Jacinda, though.
Our government doesn't have the balls to get rid of negative gearing, let alone completely nullifying tax deductions on mortgage repayments.
You have stamp duty and all sorts of other measures in place at a state level (looking at Land Tax in QLD) that at least generates revenue from this. New Zealand has none of these, and as a result property flipping is rampant - the turnover of property is 3-5x higher in parts of NZ than anywhere else in AU.
I don't know if that's a symptom of a wealth gap or something else. What ever it is it's a real issue. I personally think prices are inflated by low interest rates and the bubble is going to pop at some point.