Letters: Landlords provide cheaper housing alternative

An economics lesson in response to Jim Adam’s vilification of landlords.

My parents were in their early 20s when they purchased their first house in Tokoroa for $6000. Their wages were $5200 per annum, which equated to 86.6 per cent of their house price.

In my late 20s I purchased a house in Tauranga for $110,000 when my income was $33,000, which equated to 30 per cent of the house price.

Nowadays, the nationwide average house price is $672,504 and the average annual wage is $52,000, which equates to 7.7 per cent of the average house price in New Zealand.

The disparity between house affordability and income, along with inflation is to blame – not landlords.

Landlords selling their houses, to increase the supply, to lower house prices, does not solve the housing affordability problem.

Investing can be a back-up plan for the future, when your job involves manual, physical labour that eventually health or age, will prevent the ability to earn an income.

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Source: NZ Herald