Home Affordability Planning Calculator - NZPIF (click)
It can be good to challenge assumptions. Here’s an article by my pal (and fellow investor and author) Andrew King, president of the NZ Property Investors Federation.
Andrew examines the subject of the ‘Housing Affordability Crisis’ — a contentious political issue at present — and finds it mislabelled. According to him it’s more a ‘Housing Expectation Problem’ and a ‘Housing Priority Dilemma’.
See if you follow his reasoning, and have a crack at the handy online calculator.
It might surprise you.
– P
Ah… did no one even look at my Mortgage calculator? Available right here, at the Paepae (FREE); because this is the very methodology I applied to determine the weakness in the New Zealand housing market. What was that? Four years ago, now.
http://www.thepaepae.com/wp-uploads/2010/04/ExnzpatMCVersion2.zip
The housing industry can be summed up in one word: mortgage. It all comes down to the relationship between the borrower, the lender, and interest rates i.e. government/economy.
Play around with it, and with the other guy’s (if you must), and see if you can guess what interest rates will do over the next year. Keep in mind, that if people can’t borrow, then banks don’t make money. So, what’s your guess? Interest Rates: up or down?
Okay, I was just playing around with my software and…
I found a little snag. For revision purposes, and to stop commercial exploitation of my FREE software, I placed a minor roadblock into this program. It’s quite easy to overcome, though. The program looks at your computer’s internal date. If the date is older than 31st December, 2012, it closes down. However, the workaround is simple. Just change the date on your computer (before 31DEC2012) and the program will work fine.
I looked at the online program. It really does not give you all the information you need. Try mine, and you will have a far better understanding of the subject matter, and the house-purchasing power of your income.