Everyday Money

There is a high level of concern at the affordability of property for first home buyers. One report claimed that 83% of income is needed - the home loan affordability index showed that the average New Zealand worker on a single income now cannot afford to buy an average house, even with a 20% deposit in any region in the country. The index was created by Fairfax of media fame and as we know headlines are not always what they seem (see Finance & Investments for more on this). A good discussion paper on the house price bubble is at http://www.brentwheeler.com/

I think that a tax break or some form of government financial help would be a great support for first home buyers - meddling with interest rates will not address the problem. Tax breaks or incentives will cause for less damage to the economy.

And if you are not a first home buyer but an investor the next big thing is the moon - yes folks its true - moon prices are skyrocketing; the cost of buying an acre of the moons surface has risen 40% since the 1st of January 2007. Germans are in the lead, owing most of the surface with Swedes, English and Poles next.