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Speaker 1: One of the great myths of the modern economy is

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Speaker 1: the idea that young people can't afford a house. Now,

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Speaker 1: the facts are that for every house sold, about a

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Speaker 1: quarter of them, sometimes little bit more about twenty seven

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Speaker 1: percent are in fact first timers. That figure has been

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Speaker 1: remarkably solid over any number of years. Than any type

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Speaker 1: of market can be expensive. Yes, to some people miss out. Yes,

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Speaker 1: are some areas better or worse than others. Yes, But

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Speaker 1: in a world where the negative cells, if you can

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Speaker 1: convince people that the young are victims, it can become

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Speaker 1: very political, very fast. Of course, no government can manipulate

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Speaker 1: the market, and for all the governments that are promised

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Speaker 1: a solution that more often than not ends and tears,

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Speaker 1: And for every levy appulled, there is a counter reaction elsewhere,

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Speaker 1: which is why it is often best to lead the

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Speaker 1: market to its own devices. Australia, though, is dabbling in

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Speaker 1: housing as we speak. The latest scheme involves getting first

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Speaker 1: buyers or first time buyers into their own place where

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Speaker 1: they five percent deposit any first timer any salary. Personally,

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Speaker 1: other always liked the idea of getting young people into housing.

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Speaker 1: Easier entry the better. Often the real impediment and its

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Speaker 1: true here, of course, is not the mortgage but the downpayment.

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Speaker 1: I mean twenty percent of a million bucks, which is

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Speaker 1: basically the equation in a lot of New Zealand is

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Speaker 1: two hundred thousand dollars. That's a mountain for most and

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Speaker 1: an insurmountable one. Even one hundred thousand dollars is hard work.

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Speaker 1: But what about fifty fifty grand? Five percent? That's not

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Speaker 1: hard small town New Zealand, you go to a cheaper

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Speaker 1: place six hundred thousand dollars house thirty grand, that's doable.

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Speaker 1: That's your average key, we say, but why aren't we

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Speaker 1: doing that? Do you lose on housing rarely? Is it

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Speaker 1: a good long term investment? Yes? In Australia they cap

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Speaker 1: the price to a first home type level, so for example,

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Speaker 1: at the moment in Sydney it's one point five million

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Speaker 1: less in Melbourne. But what it will do is get

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Speaker 1: more people into houses. Do people want that? Yes they do.

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Speaker 1: The Reserve Bank worries about a price surge, but this

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Speaker 1: is being done ironically in the middle of a price surge.

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Speaker 1: Australian housing is often running. Their debate about affordability is

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Speaker 1: raging hot, and yet the government is all for it

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Speaker 1: and note it's a labor government. So what about us?

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Speaker 1: Does our housing market need a boost? Yes it does.

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Speaker 1: To first time is need a leg up, see What's

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Speaker 1: stopping Us? For more from the Mac Asking Breakfast, Listen

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