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

Werewolf: John Pilger, And Making War On China

In July, the New Zealand Defence Force is scheduled to join the latest round of Talisman Sabre, a huge training exercise that Australia carries out biennially in conjunction with all four arms of the US military.

Last time around in 2015, New Zealand contributed 650 personnel, 45 vehicles and two of our $NZ771 million dollar fleet of NH90 helicopters to this regional war game.

What’s weird is that Talisman Sabre is actually a rehearsal for an assault on China and its ability to defend itself. More>>

ALSO:

 
 

Urban Planning Report: Momentum Grows To Replace The RMA

A major new report from the Productivity Commission lays the foundation for action on the growing political consensus that the Resource Management Act and associated laws are failing both cities and the natural environment and need a complete rewrite. More>>

ALSO:

Vaping: Quitline Supports Decision To Legalise Nicotine E-Cigarettes

Today Associate Minister of Health, Hon Nicky Wagner has announced that Government are taking the proactive step of legalising nicotine e-cigarettes, a move which Quitline is pleased to hear and support wholeheartedly. More>>

ALSO:

Gordon Campbell: On The Labour/Greens Deal (And The NZDF)

If Labour and the Greens were hoping their Budget Responsibility Rules (BRR) agreement would foster an unlikely alliance then hey… mission accomplished! Because it isn’t every day that Sue Bradford, the CTU and Matthew Hooton speak with one voice, as happened yesterday. More>>

ALSO:

Until After The Election: Extension Of Report-Back Date For Havelock North Inquiry

Attorney-General Christopher Finlayson announced today that the report-back date for the independent Inquiry into Havelock North Drinking-Water has been extended at the request of the Inquiry’s Panel. More>>

ALSO:

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news