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''The really sad thing is that when I was young Richard Moore didn't seem a common name, however in the age of Google it seems there are about 31 bazillion of us.'' - Richard Moore the 27,000,000,001st.

Richard Moore's Straight Talk Columns

We'll all pay price of greed over housing

25/1/2011

SO TAURANGA is the world's least affordable place to buy a house. Well, no big surprise there.

According to figures from a world housing survey you need to spend 6.5 times your annual salary to buy a house here. That's more than twice the ``ideal income-to-loan ratio''.

Heck, even Aucklanders pay less (6.4) and so do New Yorkers (6.1).

Most of the blame for the high cost of housing here is being placed on the high cost of land. That's true to a degree but really it is bad planning and greed that are the problems.

There is a dearth of two-bedroom units - to suit young or older couples - in the newer areas of the city.

On offer instead are three-four-five bedroom homes that don't really meet the needs of an ageing population.

Then we have the greed of developers who got their mitts on land early on and are selling it off at premium rates in housing subdivisions that require a minimum size of dwelling.

There's the avarice of Baby Boomers who have made an absolute killing in real estate over the past decade as their property values have skyrocketed. But that doesn't stop them moaning about the high rates they have to pay.

Of course the economic downturn should have meant a correction in property prices but that hasn't happened to any great degree. Those who bought at the top of the market and have had to sell have seen major losses but other owners have just hunkered down and are waiting for the prices to rise again.

I reckon that's pretty unlikely as folk I talk to would rather rent than pay stupid money for overpriced places.

And, let's face it, the price of a home in Papamoa is beyond the affordability of many nowadays so when the Boomers go to sell their houses to fund their world trips there will be too few able to buy them. Lastly there's the unspoken-of spectre of leaky homes.

We don't hear too much about the old LH do we?

That's not really surprising when you consider that most of Papamoa's growth was built during the leaky era.

Many residences built between 1987 and 2004 are rated as high or very high risk.

Next time you are driving around have a look at some of the fabulous homes near our shores and tick off the list of danger signs.

Two storeys, parapet roof, a flat roof, internal guttering, tiny eaves, or decks inserted into exterior walls.

As growth in Tauranga continues to stall the cost of our rapid expansion, lax building standards and greed will come back to bite many people.

*******

``American Express _ Don't leave home without it.''

So said the late actor Karl Malden when promoting use of the US credit card.

Well, clearly Karl never landed upon the island of Waiheke, which is situated just off the coast of Jaffaland central.

It is a lovely spot to unwind on holiday but it does have a few quirks, particularly if you are relying on aforementioned plastic to pay bills.

Arriving at the Saratoga winery it was good to see the Amex symbols on all the outdoor umbrellas.

Fab, thinks I, if some of these Waiheke wines turn out to be better than pretentiousness suggests then I can notch up a few bottles on the card.

Now many Waiheke wineries are not overly friendly as you have to pay for some tastings. At Saratoga you not only fork out $5 per person but then they limit the number of wines you can check out to three only. They won't even open new bottles if they run out.

``Sorry. Not done. Boss' orders.''

Despite all this I found a dessert wine that was rather good and so went to pay for two on my Amex card.

``Sorry, we don't take American Express.''

``But you've got the symbol on your umbrellas.''

``Sorry. Not done. Boss' orders.''

Sigh.

Later on we arrived at a beachside restaurant famed for having some of the best fish and chips in Jaffaland.

The fish was indeed excellent.

Afterwards out came the leather wallet with a very reasonable bill inside and I noted it had the American Express symbol on it.

Excellent.

Unfortunately the waiter returned and apologetically informed me there was a problem with the card as they didn't take Amex.

``But it is on the front of your bill holder.''

``Sorry sir, it is an old one. We should get them replaced.''

Sigh.

I think Amex needs to change its message. `

`American Express, don't bother leaving home with it.''

richard@richardmoore.com..