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First Home Buyers Face a Kick in the Teeth From Govt

Friday, 1 March 2013, 4:15 pm
Press Release: New Zealand First Party

Denis O’Rourke MP
Spokesperson for Housing
01 March 2013

First Home Buyers Face a Kick in the Teeth From the Government

New Zealand First says the Government’s proposal for house buyers to pay bigger deposits targets people not responsible for the over-heated housing market – first home buyers.

Finance Minister Bill English told a business audience that the Government was looking to make people pay larger deposits when buying a house.

Housing spokesperson Denis O’Rourke says it is property speculators, not first home buyers, contributing to the housing problems, especially in Auckland and Christchurch.

“The increasing cost of housing is a serious problem but the solution is not to try to suppress demand with financial hurdles for those seeking to buy their first home.

“These people already have difficulty in entering the home ownership sector because of financial constraints, even while interest rates remain low.”

Mr O’Rourke says the fundamental problems with the housing market are the excessive cost of building a new home and an insufficient supply of sections, especially in Auckland and Christchurch.

“Increasing the deposit requirement for new home owners will just make things worse.

“It shows just how bereft of practical ideas the Government is on how to cool the seriously over-inflated housing market.”

ENDS

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