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
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
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
FACE OF NEW ZEALAND