Exactly - I have a real bee in my bonnet about this - so my house after 3 years is valued higher and my rates go up proportionally -but the cost of supplying the services my rates cover hasn't changed, or at least not by the same rate or anywhere near it. Money grab, pure and simple.
Exactly again. While my house has increased in value, so too has the house I purchased (albeit not by as much, it seems). I smaller house on a smaller section just around the corner from where I purchased just sold for $60k more than I paid for my new home almost two months ago. Like I said ... crazy, crazy ... I'm pushing the boat out to try to build equity that I can leave t my kids, otherwise they have no hope in hell of home ownership unless there is a sustained market crash. A crash in NZ is certainly possible, but from what I saw in the UK in the mid-90s it will bounce back quickly and higher than ever.
...and I did exactly that when moving from Hamilton to Christchurch 4 years ago - but now I can no longer afford to move back there, so I'm stuck here! ... and there is the downside...