He owned a lifestyle property and recently bought another house and an inner city apartment. My guess (I don’t know for sure) is that he wouldn’t have the income cover and probably used his equity in his existing property to purchase two investment properties. Looks like they are both cashflow negative and he was chasing the capital gain. i.e. speculating. Let me re-itterate – Even if he didn’t lose his job, he couldn’t cover the interest.

Then he says this “The apartment was purchased for “$260-something”, but he did not know the current market value.” This doesn’t strike me as a particularly sophisticated investor – He doesn’t know exactly how much he paid and what his investment property is now worth?

My advice to this guy. Sell both of your extra properties. Meet the market. Don’t ask the taxpayer to cover your three mortgagages.

Yes. It hurts but nobody is crying for the hundreds of big and smalltime property developers and speculators who are in the same boat as this after they too were burned by the decrease in the property market.

WINZ was wrong to turn these people away. On that income they’d be entitled to $91.20 a week in unemployment benefit, accommodation supplement and possible additional support if they have a high mortgage. So why didnt Labour find that out before telling the NZ Herald of this mans plight?

It’s not rocket science.

I agree there is information missing. In 1992, houses were relatively cheap compared to today. New Zealand was just coming out of a recession. If he earns $50,000 today, he would have been earning much less than that when he bought the property and the borrowings at the time would have reflected that as well.

My conclusion here is that he has refinanced for reasons undisclosed and his misfortune today is the product of this, not just because he took out a mortgage in 1992. I agree with others here, if he had not borrowed any more since 1992, banks would allow him to have a mortgage holiday until he found meaningful employment again.

Relevant angle considering the Goff comments that have been in the news, but poorly researched or written.

BULLSHIT from a deadwood media.

They may have purchased the property 20 years ago, but I am willing to bet they also have a huge mortgage now. Probably borrowed for renovations and expansion, or maybe they own another property the reporter didnt bother to mention.

Because the “journalist” obviously left so much out, any speculation we engage in is perfectly valid.

He now fears he will “soon” lose the lifestyle block the couple have worked 20 years to build – and walk away with $500,000 in cash.

Whaleoil needs to smoke these journalists out. There is a huge furry rodent attached to this story. As ever, not understanding money and in a desperate attempt to paint these folk as stable citizens they have shot themselves in the foot.

Do these folk exist? $50k in Albany as a fully qualified Engineer? Hmmmmmm. More like what the journalist hopes to earn when it has written the required amount of scare stories, to try and reach out to middle NZ.

Feeling like Rochelle Rees, and her unconnected political affiliations.

Could it be that this is a back-door type method of pushing the dole-for-the-undeserving thing the quasi-commies are trying to weasel their way back to power with at the moment?

Sign of the socialist political climate we have just come out of (?) that such events can hit the headlines, I guess. My grandparents would not be able to understand what is newsworthy about this case – they survived much tougher times and situations without State help.

For what it is worth, I am aware of a acquaintance with serious health issues and much less able to help himself who is in a much worse situation and getting only minimal and inadequate help from the State – a much more justifiable case for State assistance to the needy. In this instance, because the State is failing to deliver the needed help, there is an interesting intervention happening by the community – pretty much as Adam Smith talked about way back when. Socialism has not quite destroyed local community support and charity yet where we live.

How much money does he give to his church and why would I want to fund that?

They don’t take “extravagant holidays” – when was their last overseas trip I wonder?

I am certain there is more to this story than meets the eye. I wonder if Phil Goff put him up to it? Is he a member of the Labour Party? Where is Whaleoil on this one?