COMMENT: In October 1957, Theodore Geisel (better known by his pen name, Dr Suess) published a children’s Christmas story called How the Grinch Stole Christmas! Written in verse coupled with iconic illustrations, it followed the story of the Grinch, a solitary, grouchy creature, who hated Christmas and who, in an early premonition of “cancel culture”, tried to cancel it by stealing gifts and decorations from residents of the nearby town of Whoville.
In the story, the Grinch eventually comes to understand that Christmas is a state of mind and that Christmas gifts are about the motivation and intention behind the giving rather than the gift itself.
There’s some debate over precisely why the Grinch originally hated Christmas but perhaps the clues are in a line from the famous book: “He had shoes that were too tight. His head wasn't screwed on right. His heart was two sizes too small, with this reason being the most likely of all.”
In other words, there wasn’t one particular reason why he hated Christmas – but many – and in that, there’s a parallel with the housing market and the endless succession of naysayers who seem to hate something about the market and are all too ready to share that gripe with the nation. Depending on who you talk to, interest rates are too high, house prices are too high, the market is weighted too much in favour of tenants, the market is weighted too much in favour of landlords, the Reserve Bank or Government is interfering too much, the Reserve Bank or Government isn’t intervening enough – the list goes on.
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Jim Carrey in the 2000 film How the Grinch Stole Christmas. Photo / Supplied
I’m familiar with this “grinch-like” behaviour. Indeed, I’m one of the worst culprits. Most of my articles are devoted to defending some aspect of the market or criticising an action that I don’t agree with – but let’s face it, if I fell off my perch, there would be three more to take my place so we’re unlikely to see détente break out in the property equivalent of Whoville anytime soon.
But just for this week – because it’s Christmas – I’m going to outline five things which, in my opinion, should give us good cause to be very positive about the property market and remind us that most of our problems are relative:
1. Interest rates are very low by historic standards
Yes, interest rates are higher, relative to where they’ve been for the past couple of years – but they’ve only actually returned to the levels that they were at a couple of years ago and are still very, very low relative to historic norms. While they may go up a bit more – don’t panic - it’s a bump, not a trend.
2. The majority of us own our own home
As much as I regard myself as a champion of the cause of first home buyers and our need to do more for them, I also recognise that a significant majority of us – around 65% - already live in a home owned by ourselves or our parents. That’s a remarkable achievement.
3. Most of us have a roof over our head
Yes, there are people who are doing it tough and a few even living on the street and we should do everything that we can to help them. But that shouldn’t detract from the fact that the overwhelming majority of us have regular food in our stomachs and a roof over our heads and that the quality of our homes, relative to international standards, is high.
Ashley Church: “Interest rates are still very, very low relative to historic norms.” Photo / Ted Baghurst
4. Our combined housing wealth underpins our economic success
Kiwis now have over $1.3 trillion invested in residential property as owners or investors, and there is absolutely no doubt that property ownership is the engine which drives our economy. It affords us the opportunity to improve our lifestyles, raise our kids better, renovate our homes, travel, buy the things that we want, invest, and create businesses.
5. We (still) live in the best country on Earth
Despite political differences and division – we remain a blessed people in an incredibly benign environment with freedoms that have been unknown for most people for most of history. Fight your fights by all means – but remember to also be grateful to your higher power for the fortune that shines on you.
I wish peace and health to you and yours this Christmas.
- Ashley Church is a property commentator for OneRoof.co.nz. Email him at [email protected]
