Ouch. The latest figures show that if on the average income, 75% of your take home pay would need to go on mortgage repayments. The recommended level is 40%.
I purchased in 2001, luckily before some of the big increases. To pay it off early I’ve been contributing well over half my take home pay. I am looking forward to an increase in my standard of living when it is all finished!
In Auckland it is even worse. There on average you need to out 93% of your after tax income into the mortgage. And in Queenstown it is 105%.
The report calls for a big increase in the housing supply as the only way to fix the problem.Tags: New Zealand