Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


How Much Higher Can Auckland Prices Go?

Do We Have a Housing Crisis --- Or a Housing Affordability Crisis? How Much Higher Can Auckland Prices Go?
Smith v Twyford


PRIME TIME WITH SEAN PLUNKET
9 40 FRIDAYS ON PRIME


National's plan to liberalise the use of Kiwisaver funds and its proposal to raise ts cheap "Welcome Home" loan thresholds to help buyers purchase a new home has been welcomed by home building companies but attacked as a "welfare scheme for property developers" by housing industry experts.

Christchurch housing commentator, Hugh Pavletich, of Christchurch, co-author of the annual Demographia international housing affordability, survey, says making more money available to first-home borrowers “should properly be regarded as a land speculators’ welfare scheme, paid for unnecessarily out of young first-homebuyers’ savings and by excessively taxed taxpayers.

"This is a cynical attempt by the National Party to buy votes at others’ expense.

" It only fuels housing inflation.

"It is likely the Reserve Bank will need to respond by lifting deposit requirements further and increasing interest rates.

" This will in turn lift the $NZ, damaging the export sector further."

On the other hand Grant Porteous of national builder G.J. Gardner, which has its headquarters at Albany, said he was confident more first-home buyers would be able to enter the market thanks to the proposed change.

"Anything that helps new home buyers in the market helps New Zealanders.
"This has got to be good."

Housing Minister Nick Smith said price limits for KiwiSaver HomeStart and Welcome Home loans would be $550,000 in Auckland, $450,000 in Wellington, Christchurch and other similarly priced housing markets, and $350,000 for the rest of the country.

At present, first-home buyers are eligible for a grant of $3000 after three years in KiwiSaver, $4000 after four years and $5000 after five years.
Under KiwiSaver HomeStart, this grant will double to $6000 after three years, $8000 after four years and $10,000 after five years for the purchase of a newly built home.

Porteous said new Auckland house and land packages could be bought under the Auckland $550,000 threshold.

The G.J. Gardner-franchised businesses were selling new three-bedroom, two-bathroom, single-level 120sq m house-and-land packages on 260sq m sites in the Takanini area for $499,000. For $509,000, buyers could get a new 136sq m to 142sq m two-level house on a 206sq m to 235sq m site in that area, he said.


QUESTIONS ABOUT WHETHER WE ACTUALLY HAVE A HOUSING SHORTAGE


The "NZ Herald" this week in an editorial questioned whether we actually had a housing shortage.

It said: "The central problem is not supply, it is the demand for investment property. But National is tackling only the supply side with its efforts to have councils zone more land for housing, and the increased first home subsidy it announced at its campaign launch. These steps will do nothing to limit our appetite for investment property and may simply feed it."

This theme was echoed by Dominic Stevens, Westpac's chief economist who raised doubts about whether housing was in critically short supply:
"Interest rates are really the key driver<" he said.

" I'm not completely convinced that the shortage of housing is causing housing prices to rise because I have not seen rents going up."

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The National Leadership “Contest”

Key’s endorsement of English has turned this “contest” into a race for second place.

This succession was well planned. Lets not forget that English was told by Key in September of his intention to resign, and English was the only member of Cabinet entrusted with that information before it was sprung on everyone else on Monday morning. More>>

Latest: Judith Collins and Jonathan Coleman have withdrawn from the leadership race, leaving Bill English the only candidate to replace John Key as Prime Minister.

 

Education: Charter Schools Misleading Pass Rates

Labour: NCEA results for charter schools have been massively overstated... In one case a school reported a 93.3 per cent pass rate when the facts show only 6.7 per cent of leavers achieved NCEA level two. More>>

ALSO:

Rebstock Report Resolution: SSC Apologises To Derek Leask And Nigel Fyfe

Following a complaint by Mr Leask, the Ombudsman found that the State Services Commission acted unreasonably in relation to Mr Leask and identified numerous deficiencies in the investigation process and in the publication of the final report and in the criticisms it contained of Mr Leask... More>>

ALSO:

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

ALSO:

Earlier:

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news