Last week I discussed Australian real estate as a giant pus-filled financial pimple ripe to burst.
Now as nutty as Australian real estate is I thought it worth discussing the small empty island next door: New Zealand.
There is a saying that New Zealand is a country where men are men and sheep are scared.
Well, sheep are the least of New Zealanders’ problems.
New Zealanders like their Australian friends love rugby and real estate.
I’m not sure which they love more but both topics are debated heatedly everywhere and all the time.
Kiwis’ love affair with rugby has seen them win the last rugby world cup – no small feat for a country with a population rivalling that of an average Bangladeshi apartment building.
On the other hand their love affair with housing has resulted in Kiwi households now carrying debt
In the last 5 years alone household debt has risen 23% while incomes have risen by just 11.5%.
How is this possible – you may ask?
Like Bateman’s victims and their Australian cousins Kiwis have ignored the warning signs and instead have been seduced by lower and lower interest costs on their debt.