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GREATER PAKISTAN NAVY  and  GWADAR PORT

          Major Failure Auckland city council, Housing crisis

               Housing  crisis is a  big  problems in  Auckland,  At least   twenty  thousands  a  year 

need  new houses.   Now is too   late  because  so behind,  GOVT  need to  act fast  and Quick.

When you calculate the living cost  for normal Person, rent or mortgage  come 33% maximum

of his income. less will be give him a better life, more than 33% Financial institute will decline

 his credit application.


       

              Housing  Pricing in Auckland just a joke, sky rocket, not reachable for normal Person at

any  terms  and  conditions,  even   normal  working  couple  cannot  afford  to buy  a house and

Financial institute  will  decline  their credit  application  because  they  are   out  of   living  cost 

calculation.  

 

         In USA  bank break this  rule and  60% people cannot  afford to pay  the  mortgage  and  they 

leave  the  house  key  at  the  bank counter,  in USA  bank  own  the  house  unless  you  paid full

mortgage  formula  similar  like  rent  to own,  that  why  many banks in USA  become in financial

problems.

 

         In New Zealand work difference way. you own the house bank give you loan to buy the house.

If  you  fail  to pay  mortgage  you sell or bank will sell house on behalf of you, if the selling price less

than mortgage you still have to pay the balance.  GOVT and center Bank always very careful about

 mortgage loans and bank must follow Rules and Regulations.


                  Who is responsible for housing Price:

                  there are many factors to considers before you reach  concolution.

First and the main factor is "Value of your house"   who do that ? (city council) So in Auckland

GOVT Value of the house done by Auckland City Council,they do every three year what formula

they have I don't know. Why they do because your rates  calculate on base of your house Value.

Just a example 20 years ago Auckland city council  value  the house hundred  thousands dollars:

today they do same house one million dollars: in reality that house is 20 years old, tell me if your

car twenty years old what you get ? So why  city council  put up the old house price up,  if you  

compare  house  with other items for  sell,  more they old  they  loose  the  value and  price go 

down but  house  work other way around   (I believe they using wrong formula)

      

                   I never see  city council  come and visit the house and do the valuation, what they

do every three years they just  put up by  percentage (%) for all  Auckland even there are 

many houses may not even good to live, their price also go up ( when you have shortage of

houses, people have no choose they will buy)twenty years ago house was hundred thousands

dollars today GOVT Value one million: ten time more: again  just a example twenty years ago you

was paying rates for this house hundred dollars today you paying rates to Auckland city for same

house thousand dollars. That why Auckland city council increase  the value of the house  every 

three  years.  I believe  they  do  the  valuation  of  the  property  by   their  need  of   expensive

( how much % they need more income  for next three years)  simple word:  they increase the

tax every three years  and  that  the  main  factor  housing  price  are  sky  rocket in

Auckland and will  continue rise unless  Auckland city council change his formula of rates:


        Gaps Between  GOVT value and Market Value

                    1-  Most of the houses sold or will sell around GOVT Value (done by Auckland city)

but  always  the case. Hot spot and LUXURIOUS  Properties  sold  much higher Prices than to

their original (GOVT Value) because of their attractions. These Properties will not effect on normal

houses Prices because they rare.

 

                 2- Gaps between GOVT and Market Value, Second Main reason is shortage of houses.

Example  five houses for sell and ten buyers, demand double than to production, then every

one will bid higher because half of them will be go without house. I again repeat my word all

game going on around GOVT Value and that done by Auckland city council.

 

                  3-Gaps between GOVT and Market Value: that not good sign for businesses and

investors when price going down, how we can say Market not good Prices are down people

don't want to sell their houses, we still measure or compare with GOVT Value(done by

Auckland city council) why  this happen ? example again this time we have ten houses for

sell and five buyers, so only five houses will sold, double productions than to need, buyers

can choose what they like  better value and better houses will sold and rest will be left unsold,

if these people cannot afford to hold the houses (financial problems etc) than they will  sell on

lower price (GOVT Value done by Auckland city council) and some one have bargain. So  whole

housing price game in Hand of Auckland city council.

                Center Bank or center GOVT what ever they do, will not effect or change housing

market. Interest up or interest down. depot higher or lower will not make any difference.

In Auckland you so behind in Production what ever you have terms and conditions some

one will be there to buy the house, houses will be sold higher value than to GOVT Value,

I must say even sold with "GOVT value" Price are  still very high, normal Person cannot

afford to buy. So how you canna reverse the price, Auckland city will not reverse the value

of the houses  because this will reverse their income. That why In Paris (France)

original people move out from Paris to country site or small cities because of the housing price.

 

                That what center GOVT sort out with Auckland city council, not a easy game because

People will not happy. just a example you buy a house (you own) a million dollars  and next year

Auckland city reserve the price to five hundreds thousands dollars, you have mortgage million

dollars and your house value now only five hundreds thousands dollards.you loose your whole

life income. you(owner) don't want that Auckland city council don't want that

(don't want to loose income)

 

 How we canna sort out  this problem

 

 1- center GOVT should add new tax on Private properties sale that will bring housing prices up

(current GST Rate is 15%).

 

 2- Auckland city council give five years free rates plus Plus, what ever best they can offer to 

the new house builder.

     (Center GOVT should announce 5 years Fax free Zone all investments in New House building, that bring heavily Investment)

    offer should only apply on new land and new house building not rebuild or replacement

of house. that will discarriage to people buy ready made houses and they will start building New houses.

Investor will heavily  invest in properties to build new houses BECAUSE EASY TO SELL. Auckland city

must be care full  to do the valuation  for new houses. that will keep every body happy, more jobs, more

business, new consrations.in this way older houses  will sold cheaper because   you have to pay full rate.

that already try in Pakistan work perfectly. Gwadar is example,

    Pakistani GOVT announce five year Tax free  all investment in Gwadar

(Gwadar was undevelopment  city, nobody want to invest)

   Today Gwadar is one of Best Seaport in the world

    China 40 % export go through Gwadar  Seaport.

   
    Many Thanks for Reading

    M.Aslam

    FACE OF NEW ZEALAND

 

   

 

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09.08.2016 (09.08.2016)
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