PM’s Net to Catch Property Gains Not the Key
PM’s Net to Catch Property Gains Not the Key – a Motor Home Could Drive through It
The Prime Minister’s solution for housing speculation is not the key but a pittance and completely ignores the issue of offshore purchases of New Zealand land and massive immigration, says New Zealand First.
His statement “we don’t always have good information about them” just about sums up his approach, says New First Leader Rt Hon Winston Peters.
“New Zealand First’s house and land register bill has been around for years.
“Mr Key scoffed at the idea, which is common sense in other countries but apparently not to him. Accordingly, his recent Damascus experience should be seen for what it is – a weak attempt to deal with a major problem.
“A close examination of Key’s announcement shows how weak it is. For example:
• Offshore land banking in New Zealand is allowed.
• Offshore purchasing of homes to rent to New Zealanders is allowed.
• The two-year rule, ironically called the ‘bright line’, is a joke. Expect the Companies Office to receive a torrent of applications for new property companies all in the name of virtually anonymous offshore property investors.
• The past rash of offshore buying of multiple homes and farms will not be touched because the changes take place after October 1 this year.
• In the context of addressing past mistakes, National is doing nothing.
“National’s grasp of capitalist thinking – ‘the law of supply and demand’ – is woeful. Under present settings, Auckland needs 13,000 new houses a year. Housing consents, not even new houses, have run at less than half of that in the last 4 years.
“Further fuelling housing demand is record immigration at over 56,000 per year, over half going to Auckland. The demand for housing in Auckland is more than twice the supply required to meet housing of new immigrants to Auckland, let alone New Zealanders wanting new homes in Auckland.
“Mr Key’s dog whistle leaves thousands of New Zealand buyers in the dog house.
“Auckland house prices will climb before the inevitable property bubble burst.
“Mr Key and foreign-owned banks are on the horns of their own dilemma. The bubble can’t last. They can’t avoid the dire results of house price deflation and hundreds of thousands losing most, if not all of their equity, in over-priced homes.
“Mr Key’s residential property gains net is so full of holes one could drive a motor home through it. In short, National’s response to Auckland’s housing crisis is one more self-induced failure,” says Mr Peters.