He had always believed that owning your own home was the best way to provide a secure and stable environment for your family, so Isabel decided to do everything she could to hold on to their house when Ken died.
She lived extremely frugally, regularly going without so that Helen and Peter could enjoy some of the things their friends got to do. Once she thought they were old enough, she got a part-time job, which became full-time when the children left home, and she was able to pay off her mortgage just before she retired.
Isabel’s sister, Jean, had a very different outlook on life. Jean and her husband Alan came from working class roots and could never seem to save enough to put a deposit on a house.
It didn’t matter. Their relatively low combined income, coupled with their children, meant they qualified for a state house. It wasn’t in the best part of town, but the local school had a good reputation, and the house was theirs for as long as they wanted it.
Once the children left home, they were even able to save for a couple of overseas trips, including six weeks checking out the sights and sounds of Europe.
Isabel hardly ever got out of the South Island. While she owned her own home, Isabel trod a much more difficult path than her younger sister, but the worst was yet to come.
Ken’s untimely death made Isabel determined to leave Helen and Peter with the financial resources to enjoy life in ways they hadn’t experienced as kids.
Unfortunately, Isabel needed rest-home care before she turned 70. She sold her house to pay for her care and wasn’t able to help Helen and Peter the way she’d dreamed of when they were young.
A few short years later, Jean moved into the room across the hallway when Alan died, and she wasn’t able to look after herself.
With no assets to fund her care the cost was picked up by the taxpayer, just as her housing had been for decades.
It is very difficult for the government to write policy that is fair for everyone, but the housing crisis in New Zealand has created a number of perverse outcomes.
A significant number of Kiwi families, even with both parents working, pay so much in mortgage repayments they can’t afford to heat their homes adequately or carry out essential maintenance.
At the same time, the tax they pay on their hard-earned money helps provide modern, affordable, warm, dry housing for people who don’t work.
The percentage of Kiwis who can get a foot on the housing ladder has decreased markedly in the past two decades. Countless New Zealanders will never own their own homes because of the wealthy property investor class that has developed because of favourable tax laws.
What is good for individuals isn’t good for the country as a whole. When it’s time for tenants to move into end-of-life care, the landlord has made their pile, and the taxpayer ends up footing the bill.
High mortgage repayments and escalating rents will hinder the growth of parts of our economy. The retail sector in New Zealand is already stagnating.
Kiwis struggling just to put a roof over their heads have limited amounts of discretionary spending, if they have any at all. Retailers and hospitality owners, especially, will suffer as their customers struggle to make ends meet.
Christopher Luxon thinks New Zealand should aspire to become a more prosperous country, like Singapore. One of the keys to Singapore’s economic growth and success was a government decision made decades ago to dramatically increase home ownership in the small island nation.
Will Luxon and his team be prepared to come up with housing policies and new initiatives for the masses to own their own slice of New Zealand or just look after those who are already wealthy?
Will hard-working people like Isabel be expected to pay exorbitant amounts for their own homes as well as subsidise the living expenses of others? It’s not exactly fair, is it?
The new government should prioritise quality housing for every New Zealander instead of allowing property speculation to line the pockets of relatively few.
Research shows that homeowners have better economic, social and health outcomes. Some things are too important to be left for market forces to decide.
■ Randal Scott is a trained youth pastor, secondary school teacher and mental health support worker.
