27 April 2016

New stats show Govt’s created a property speculators’ paradise

Mortgage-lending stats released today by the Reserve Bank show that the Government’s unwillingness to put rules in place for property speculation means investors are snapping up houses at the expense of first-time buyers, the Green Party said today.

The Reserve Bank’s figures show that 7,006 new mortgage loans were approved for investors in the month to March, while just 2,044 were approved for first-time home buyers. The amount of money lent to investors to buy property was almost three times the amount lent to first-home buyers.

“This is more evidence of how the National Government’s more interested in keeping property investors happy than helping young Kiwis buy their first home,” said Green Party Co-leader Metiria Turei.

“Time and time again, the Government has insisted that we don’t have a housing crisis in this country. Well, here’s more evidence that National’s in denial.

“Wealthy speculators are getting richer off their property investments, while young Kiwis can’t get a look in. That is morally wrong, and a massive failure of John Key’s Government.

“Property speculators are being allowed to do what they do because the Government refuses to put in any proper measures to even up the playing field for first-
time buyers.

“A properly enforced capital gains tax would go some way to dampen domestic investor demand and a major government-funded building programme would provide the homes that Kiwis need.

“The Government should also be looking at banning non-resident foreign investors from helping themselves to New Zealand houses.

“Putting a sunset clause in the legislation means any government could re-look at the ban, if and when housing supply finally catches up to demand,” said Mrs Turei.

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