BRO­KEN FAM­I­LIES

Auckland City Harbour News - - YOUR PAPER, YOUR PLACE -

Grand­chil­dren are one of the con­so­la­tions for get­ting old. Liv­ing near them means be­ing able to see them, and chip­ping in with school pick-ups and care so they don’t have to spend hours and hours in af­ter-school care ev­ery day. But high house prices can mean gen­er­a­tions of the same fam­ily strug­gle to live near each other. Some peo­ple even see their chil­dren flee their home cities in search of bet­ter, and cheaper, liv­ing else­where. have to start up new homes alone. They have a lit­tle shy of $300,000 each to go shop­ping with. They’ll be lucky not to end up dou­bling the debt they in­di­vid­u­ally carry, if they can ever buy a home again. What a way to start sin­gle life again. There’s been a drive to get us to think about our­selves as self­ish in­di­vid­u­als seek­ing only to max­imise per­sonal wealth. Fam­i­lies don’t think like that. Home­own­ers watch with hor­ror when their young ones take on mort­gages of $600,000-$800,000, know­ing what the re­sult will be. Paid back over 30 years, there’s $650,000-$850,000 in in­ter­est to pay, as­sum­ing an op­ti­mistic 6.5 per cent in­ter­est rate. What par­ent wants their chil­dren to be life­long slaves to banks? some­times, but down­siz­ing, or up­siz­ing can be­come a night­mare in a hot prop­erty mar­ket where un­con­di­tional auc­tions are the norm. If you ac­ci­den­tally end up shut out of the mar­ket, things can very quickly turn against you.

123RF

For many young peo­ple the key to their own home is out of reach.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.