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 Mt Albert Aftermath

Personality politics – Jacinda is great! Jacinda is not so great! – have dominated the coverage of the Labour Party’s fortunes this week...

Still, this is a relatively new and welcome problem for the centre-left. Labour has seemed so bereft of crossover talent for so long that it seems almost embarrassed by this latest development. More>>

 

Conservation: Central Govt Takes Over 1080 Regulation

“This new approach standardises the rules for using such poisons rather than the current system of different rules in different regions. This change will reduce costs and delays for operators, ensure consistent conditions throughout the country, reduce mistakes from misunderstanding rule differences and allow best practice approaches to be used." More>>

ALSO:

Election Entertainments: ACT Has Prison Plan, Greens Have Water Bill

Green Party launches Member’s Bill to protect our freshwater The Green Party has today launched a member’s bill that will keep water from underground sources, called aquifers, safe from pollution and contamination. More>>

ALSO:

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river. More>>

ALSO:

Immigration: Clampdown On Rogue Employers Good First Step

The Human Trafficking Research Coalition is pleased at the new clampdown on rouge employers who exploit migrants announced by Minister Woodhouse this morning, and believes this is a step in the right direction. More>>

ALSO:

Mayor: 750 New Social And Affordable Homes For Wellington (Over A Decade)

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news