When it comes to housing affordability, there's an elephant in the room

Housing affordability the elephant in the room www.wealthandrisk.nz

Any political party is going to support the idea of "housing affordability". Who wouldn't!

The issue with housing affordability is that it relates to property prices. 

Broadly speaking, the way to make housing more affordable is to reduce property prices.

Many voters are property owners. For most of these people, the bulk of their wealth is in property.

To make property housing more affordable, it's necessary to reduce the value of property, which in turn will reduce the wealth of a huge proportion of voters.

It doesn't help that major interest groups (such as banks) are also interested in property maintaining its value, considering it relies on the security of these properties. 

For these reasons, most policies relating to housing affordability are symbolic and ineffectual.

Sonnie Bailey

Sonnie is the founder and principal of Fairhaven Wealth.

Before founding Fairhaven Wealth, Sonnie worked in the legal and financial services industries for over a decade.

Sonnie first became involved with financial advice as a specialist financial services lawyer. For many years, he was an “adviser of advisers”, reviewing thousands of advice files prepared by hundreds of financial advisers, and providing feedback in relation to the quality and appropriateness of advice; industry best practice; risk management; and regulatory compliance. He has published work in industry publications and spoken at various financial advice conferences.

Sonnie has also worked with banks, investment management firms, insurers, and derivatives providers.

Sonnie has worked as a private client lawyer, focusing on succession, estate planning and trusts. He ran his own legal firm in Australia before relocating to New Zealand. He has also acted in independent trustee and company director positions.

Sonnie is passionate about helping people achieve their goals and manage the risks to which they are exposed.

He has written extensively on his blog, New Zealand Wealth and Risk, which can be found at www.wealthandrisk.nz.

Sonnie is married to his wonderful wife Chrissy, and has two young children, Ben and Anna.