As usual in any economic mess, its those at the bottom of the heap who get the worst of the deal, and sooner than everyone else. For those non-Kiwis, Mangere is a decile 1 area with people on the lowest 10% iof the wealth ladder. Here's the latest. Mangere hit by mortgagee sales as downturn bites.
That's heading for catastrophic and our government needs to be in there. At the very least they need to be buying up the mortgages from the banks at 30c on the $ (yes, they might get slightly better on the open market but the banks have to take some lumps like the rest of us) and converting the owners to tenants to keep them sheltered.
And yes, they aren't my political flavour and it might mean they scoop up a lot of voters who might never otherwise vote for them, but frankly I don't care, we should be smarter than to toss people out of their homes after suckering them into the king of all mortgage traps with irresponsible lending and flashy advertising.
The side-effect would also be to keep those homes off the market and help slow the collapse for the rest of us. Chances that it will happen? Zero.
Even that wont stop the rot but it might slow the fall and let people make better accommodations to their accommodation.
Example, we bought our place for 575k 2 years ago and even then we wrote off 100% of its assumed value because we knew it would go down but had no way to guess how far. Our neighbour has his place on the market, 10% more land but smaller house and undeveloped surrounds. He hoped for just under 500k at auction. No bids at 360.
Now this from Mangere. We can't even see the bottom from here.
A Mangere budgeting agency has seen 27 families lose their homes to mortgagee sales in the past two months as the recession appears to be biting most heavily in South Auckland.
Mangere Budgeting Service manager Darryl Evans said people were being forced to sell up after losing one or both jobs in a household. "In the past two months, about 60 have said one or both have been made redundant in their families. That's quite high given that we are a small service in the community of Mangere.
"In the five years I have worked here, we saw two families lose their homes to mortgagee sales. In the last two months, 27 families have lost their homes," he said.
Even if every Mangere family forced to sell went to Mr Evans for help, the figures mean that Mangere, with only 1.3 per cent of New Zealand's population at the 2006 census, is accounting for about a tenth of the country's mortgagee sales.
Mangere Budgeting Service manager Darryl Evans said people were being forced to sell up after losing one or both jobs in a household. "In the past two months, about 60 have said one or both have been made redundant in their families. That's quite high given that we are a small service in the community of Mangere.
"In the five years I have worked here, we saw two families lose their homes to mortgagee sales. In the last two months, 27 families have lost their homes," he said.
Even if every Mangere family forced to sell went to Mr Evans for help, the figures mean that Mangere, with only 1.3 per cent of New Zealand's population at the 2006 census, is accounting for about a tenth of the country's mortgagee sales.
That's heading for catastrophic and our government needs to be in there. At the very least they need to be buying up the mortgages from the banks at 30c on the $ (yes, they might get slightly better on the open market but the banks have to take some lumps like the rest of us) and converting the owners to tenants to keep them sheltered.
And yes, they aren't my political flavour and it might mean they scoop up a lot of voters who might never otherwise vote for them, but frankly I don't care, we should be smarter than to toss people out of their homes after suckering them into the king of all mortgage traps with irresponsible lending and flashy advertising.
The side-effect would also be to keep those homes off the market and help slow the collapse for the rest of us. Chances that it will happen? Zero.
Even that wont stop the rot but it might slow the fall and let people make better accommodations to their accommodation.
Example, we bought our place for 575k 2 years ago and even then we wrote off 100% of its assumed value because we knew it would go down but had no way to guess how far. Our neighbour has his place on the market, 10% more land but smaller house and undeveloped surrounds. He hoped for just under 500k at auction. No bids at 360.
Now this from Mangere. We can't even see the bottom from here.
Comments