Duncan Garner: Our housing market is an uncontrollable freight train - get used to renting for life

OPINION: There's great news for homeowners, especially in Auckland. One of the county's top property experts says we are at the start of the next seven-year-cycle.

Off she goes. What's frighteningly unaffordable now will likely double in price in just the next five years. 

A million-dollar home which is now entry-level in Auckland will cost $2 million to buy in five years. The house will earn more than you do by going to work each day.

No wonder first home buyers and those locked out are panicking. 

Despite COVID-19's toxic spread, our house prices jumped 20 percent in just one short year. 

Blame the Reserve Bank. They are printing up to $128 billion dollars and giving it to the banks so cheaply that interest rates will never be this low again.

The beast has become a runaway, uncontrollable freight train.  

As a result, more people will have to get used to renting for life. 

Since the year 2000, house prices have quadrupled and wages have only just doubled. See the problem?

A house will now cost you ten times the median wage. When I was born, it was three times Dad's wage.  

The Government knows, of course, but it's become a possum in the headlights.

It rarely talks about affordable homes because they don't exist. It can help first home buyers but really only at the margins.

My understanding is it will increase the brightline test from five to 10 years. So if you buy a house and sell it within ten years you are taxed on the profit, a Capital Gains Tax in drag. 

Basically our politicians have been utterly useless on housing for 20 years

Sat there and done nothing but watch the bonfire. Clark, Key, and now add Ardern to the list.

It's daunting for those who miss out as each open home they attend is sold to someone else.

This should now deeply worry this Government. Its supporters are set to be disappointed.

Keeping them on side may be this Government's toughest test.

Duncan Garner hosts The AM Show.