National Part Housing Policy I have been asked to comment a couple of time already today in the media on the recently announced National Party housing policy. I thought I would summarise my comments here and see what reaction I get or comments you want to make? 1. There is a need to align the need to provide assistance for 1st home buyers (who have been shut out of housing by the LVR policy) with the need to stimulate supply of new homes - so in simple terms a good move. 2. No incentive of this scale and form - free money is devoid of consequences. The impact of this policy will begin to take effect this time next year just when this current plateau in the property market begins to ease and sales are taking off again - it will be a contributor to yet more price inflation 3. Its a policy that suits a time and now is not the time - the time would have been in 2010/11 - we needed to get building going then and stimulate the market 4. The policy is designed to solve Aucklands problems but the reality is it will not as the type of new houses for sale in Auckland for which this policy is targeted are not 1st time buyer homes - they are family homes - we build too many 4 bedroom homes on 350m2 sections not because we have a demand but because this form of house delivers greatest return on investment to the developers 5. The Kiwisaver scheme was set up to encourage and stimulate a diversification in investing to remove the single focus on property - this policy encourages people to smash the piggy bank and will disconnect people from superannuation in favour of property once again 6. The incentive of $20k is too good to miss for people who instead of looking at buying Auckland will look to buy something to rent outside Auckland to get use the Welcome home scheme 10% deposit excemption from LVR policy using this $20k and this is not sound economics as these investment properties will become burdens for such people in the long run denying them every the opportunity of owning any property in Auckland
Posted on: Mon, 25 Aug 2014 08:07:46 +0000
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