So let’s say you decide to get qualified. All the way to the top – you decide you’re going to get a PhD. Why stop halfway? That’s a very long time as a student, during which you won’t have a proper income to save up for a house. But hey, with a PhD your income will be well above average, which will compensate for the time lost, right? Wrong – because during that time, house prices double, even triple in some cases. When you get your prized degree, it occurs to you that there are only six Universities in the whole country (well, six real ones, and a handful of training colleges of various kinds), and the chances of you landing a job at one of them with your new degree in hand are virtually nil. So let’s forget the compensation of a higher income in NZ because of your degree.
So let’s see, now you’ve spent many years getting a degree in New Zealand that won’t get you a higher income in New Zealand because the taxpayer funded mafia control and own the education racket (no competition there!), the same mafia which, coincidentally implemented very hefty regulation that deliberately and severely restricted the availability and hugely increased the cost of land for urban housing meaning that once you got your degree, not only was it worthless in regard to your income, but now you’ve not a snowball’s chance in hell of ever buying a home in this country.
Oh, you think I’m exaggerating? Nope. It’s official. New Zealanders, as a rule, can’t afford to own a home.
According to the Fairfax Media home loan affordability index:
It now takes 80.0% of one median income to pay the mortgage on a median priced house purchased in September, down from August’s 80.6%. This index reached a high of 80.9% in June 2007.
No, that is not a typo. Eighty percent. Oh, and it gets better. “With house prices still high, the median income for a typical buyer is not high enough to buy a median priced house, even with a 20% deposit.” TWENTY percent. So if somehow you’d robbed a bank while you were getting those degrees and stashed away a twenty percent deposit, you still couldn’t do it.
[sarcasm]State control of education and property development. Gotta love it. It’s just so good for our future.[/sarcasm]
One guess whether or not PhD grads will be staying in New Zealand for long.