I really don’t understand what it is about New Zealanders and the fascination with home-owning. There are plenty of ways to make money in the world, and just because the baby-boomers appear to have the real-estate market sewn up it doesn’t mean you’re condemned to a lifetime of poverty.
Far from it. Sooner or later the boomers are going to have to sell those houses, and they’re likely to do so all around the same time. I’m too much of a “not an economist” to be able to give you all the details on that one. But it does make sense. They’ll be selling their rental houses to pay for their hip operations, and then you can snap yourself up a bargain.
The talk of the boomers being the “selfish generation” has been floating around for a fair while now. They received cradle-to-the-grave care until they realised they had to start paying for it, then voted it away, hanging the rest of us out to dry.
The only real good news is that with their property money being so vast we can afford to make them pay for their own retirements…
Lets go back to property though. What is it with “property” equalling “normality”? I was trying to describe my previous place of employment to someone at work the other day. It was a government department, which means it has high numbers of ‘operational’ staff. These are the “answer phones”, “open letters”, “man desks” type public servants, and they do a sterling job. And as I pointed out in a blog somewhere else they tend to be what you used to call “blue collar” workers. An alarmingly high number of the staff are what you call “lifers”. They started working there in their teens, after dropping out of school, work there today, and will work there till they retire.
Now while these are all good life choices, and they’re decent people we’re talking about, it means they aren’t what you call highly mobile. These are people who like the security of knowing where their next paycheque is coming from, and knowing that what they have is their own. For many their big OE was a trip to Bali or Brisbane. We aren’t talking about art critics and frequenters of Circa Theatre. And, every country is the world has this type of person.
My experience of working there was of a particular attitude though, what the snazzy, upwardly-mobile, flash hairdo kind of person calls, “a culture”. And that culture dictating that getting so a certain age, saaaayyy… 36, and not having a house, kids, marriage? Then someone must be “a bit weird”. And that’s the particularly New Zealand thing.
New Zealand is to me the kind of place where the expectations of ordinary people like the ones I used to work with are commonplace. New Zealanders don’t branch out and embrace new and wonderful things en masse unless TV or a magazine tells them to. While our society is not as stifling as it used to be, it is still highly conventional. People put all their wealth into homes because that’s what expected of you. They don’t see that paying rent and saving is also an option because the conventional wisdom is that you buy a house. A big one. With a great big mortgage. And give twice its value to the bank in interest payments.
Sure, I’m stereotyping and overstating the case a lot. Plenty of people know that there are options and new things out there. Fashion is as fashion does and it always dictates what the suburbs think. Most suburban people are too busy making ends meet and feeding/smartening their kids to worry about the avant garde. But it also leads to some mighty small and narrow thinking about wealth creation, normality, and one’s way of life, because security requires regularity.
And people like me are caught between these two poles. Baby boomers who’ve always thought this way monopolising all the property, and Gen Xers convincing themselves that they need to own the property the boomers will only sell at a premium. Because that’s the way you amass money. You give it to someone else for their house, so they can make back the money they gave to the bank in interest.
It’s an endless stream of buying their ticky-tacky little houses, they way they always have. Seen Papamoa lately? No. This is what it would have looked like in the 1890s.

The good news is that I’m not buying into it. And you don’t need to either.
7 April, 2008 at 8:35 am
Che said; New Zealanders don’t branch out and embrace new and wonderful things en masse unless TV or a magazine tells them to.
Merc says, (tongue in cheek)…no we usually wait for Che to tell us.
Don’t worry about the property thing, you’ll just talk yourself back to Oz. Eat, drink and be merry, for tomorrow…
7 April, 2008 at 9:42 am
From ‘How You Doing?’, by the Front Lawn:
- Ah, how you doing? I haven’t seen you for…
– Yeah, it’s quite a while isn’t it.
– I suppose you’re happily married with a family and everything now then?
– Ah, no, now way, not me.
– Still, it’s only a matter of time isn’t it?
– Heh… Nah…
– Yeah, eh?
– Heh… Nah…
– Yeah, eh?
– Heh… Nah…
– Yeah, eh?
7 April, 2008 at 4:55 pm
dunno. a lot of the same crazy behaviour was exhibited in australia as well. it’s a kind of bloody-mindedness the likes of which i never really understood.
7 April, 2008 at 6:20 pm
Strive for objectivity grasshopper…less blood pressure. Besides one person’s crazy is another’s normal.
Mind you i adhere to none of this objectivity stuff when I’m surfing…
7 April, 2008 at 7:20 pm
oh, it’s objectivity that got me to here.
subjectivity would have me yelling, “where is my $900k apartment on oriental parade? hmmm? i deserve it!”
7 April, 2008 at 7:23 pm
Dinosaur Junior moment…(I feel the pain…)
7 April, 2008 at 7:37 pm
now there’s a tape i should dig out. the trouble will be finder a tape player though.
ah well. back on goes the tapes n’ tapes.
7 April, 2008 at 7:58 pm
…there’s a heap of solace in them tapes…I personally mourned the death of the tape (including mix tape)…rejoiced the demise of vinyl…ok I’m a contrairian, and I hate burning cd’s, love me shuffle tho that I play through my car cassette player…using a cassette converter…playing Patti Smith & Joy Division to the teenagers…priceless…
there you go kids…that’s NOT emo…that’s a rock poet and proto-goth.
…horses, horses, horses…
7 April, 2008 at 9:24 pm
I really don’t understand what it is about New Zealanders and the fascination with home-owning….. And that’s the particularly New Zealand thing….New Zealand is to me the kind of place where the expectations …. are commonplace. New Zealanders don’t branch out and embrace new and wonderful things en masse unless TV or a magazine tells them to.
So what countries don’t have these attitudes as commonplace amongst the ‘common folk’? homeownership seems pretty popular in most countries and we’re certainly no more obsessed than any of the other anglo countries. It all seems to be an odd and somewhat unessesary justification for saying, “I don’t feel like buying a house.”
They don’t see that paying rent and saving is also an option because the conventional wisdom is that you buy a house. A big one. With a great big mortgage. And give twice its value to the bank in interest payments.
I think the main reason people have bought a house has been they want to own the place they live in as a matter of personal security and stability or that the conventional wisdom has paid huge financial dividends for a very long time. You seem to be assuming most people are pretty thoughless automatons.
8 April, 2008 at 7:03 am
but i do want to buy a house. i just don’t want to be sucked into an obsessive pattern of ownership that unnecessarily inflates prices.
you seem to be deliberately overlooking investment patterns in nzl.
it’s real estate and nothing else in these fair isles.
8 April, 2008 at 5:56 pm
you seem to be deliberately overlooking investment patterns in nzl.
it’s real estate and nothing else in these fair isles
Don’t forget Lotto!
8 April, 2008 at 7:44 pm
but i do want to buy a house. i just don’t want to be sucked into an obsessive pattern of ownership that unnecessarily inflates prices.
Well that still doesn’t make your comments about the ‘common folk’ anymore valid.
you seem to be deliberately overlooking investment patterns in nzl. it’s real estate and nothing else in these fair isles.
How can I be deliberatly overlooking investment patterns when I specifically to the financial results of those patterns? Also it’s not the case it’s the only game in town – http://www.rbnz.govt.nz/statistics/monfin/HHAandL2006webcopy.xls. (if you discount the price inflation since 2002 – which has been a global phenomenon – our appetite for financial assets seems to be growing.)
And even if it were the only game in town, that doesn’t support your assertion that people are only investing in housing because it’s expected of them – you’ve just made an unsubstantiated assertion on that one.
9 April, 2008 at 9:21 am
i think you need to get out more. in places in europe, i.e. non-anglo, renting is the norm.
the post referred specifically to my experience of working with a number of people who think in this fashion. the post wasn’t seeking to provide proof that they are obsessed with home-ownership, it was an anecdote.
soo… you’re asking for proof in an anecdotal post. over-demand much?
9 April, 2008 at 8:01 pm
i think you need to get out more. in places in europe, i.e. non-anglo, renting is the norm.
That’s bit of a myth. In my province we own or homes, most other places too. http://www.flickr.com/photos/21674069@N02/2399822049/sizes/o/
I never challenged your anecdote about the lifers, I challenged (I don’t recall demanding proof) the generalisations you made about NZers in general which had very little basis fact. When you construct an ‘it’ and you’re saying your not buying into it, having the ‘it’ being a straw man can hardly go unquestioned – this is the interweb!
9 April, 2008 at 8:54 pm
dunno man. the whingers i refer to in this post are just cashed-up versions of exactly the kind of people i’m griping about.
it’s the audience for the “poor me i can’t afford a house on my $16 per hour” demographic the weekender papers constantly play to.
unless you think that market is a strawman as well?
10 April, 2008 at 6:55 pm
Che, I’ve got no argument with your argument (er, you get my drift) about home-ownership-as-investment, but my big problem with renting is that it sucks. Not because of the houses, or the economics, but because of the way it’s managed and the expectations of landlords.
Last year ours decided they’d like their house back, thanks, and had to be told by the real estate that actually they had to give us notice. Which is just what you want to hear when you’re trying to finish a thesis. I’ve never lived in a rental place that had decent carpet or curtains, or where the landlord leapt into action as soon as we asked for something to be fixed. Nor I have ever been sure that fixing something myself would be well received.
I’m sure I could get a much nicer deal if I paid through the nose, but at that point paying rent to the bank begins to sound like a reasonable deal. Especially if you’re a grown-up and would like to live somewhere you can do the occasional messy and long-term thing, like pull a car to pieces… None of this is inherent to renting, but it’s part and parcel of renting in this part of the world.