Housing ‘skewed’

The misleading argument that housing cost compared with incomes makes home ownership increasingly unaffordable is based on isolated facts that skew the overall picture.

According to a recent Dominion Post article, the size of homes has doubled since the 1970s, with enhancements such as insulation now considered essential.

Inflation has fallen and incomes have increased. Lending competition offers purchasers preapproved bank loans with not only extremely low interest rates but extras such as cash gifts and free valuations.

Wise use of flexible lending packages provides further savings.

Unfortunately people are either no longer around or have forgotten how hard and expensive it was in the past to even obtain finance, let alone the cost of servicing it in a climate of high living costs with cars, TVs and travel accepted as luxuries.

Deposit saving has always been hard. The former 33 per cent requirement is now 10 per cent with Welcome Home loans. Ability to save is further enhanced in a climate of consistently low inflation.

Some reality on prices would be helpful. In most areas house prices dropped post GFC with the 2016 boom largely a catch-up.

Achieving home ownership has always been hard.

The change is about housing expectations. MAGGIE MILLER Kelburn