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  1. #1
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    Default $37 Million a week

    A multi-million-dollar subsidy flows each week to landlords around the country – and the amount handed over is growing quickly.

    But this isn’t the stream of private market capital gains, which deliver a serious windfall to property investors in years like the one we’ve just had. This is taxpayer money delivered from the Government.

    The accommodation supplement bill is increasing rapidly: The supplement cost just more than $37 million a week in the September 2020 quarter, up from $27.1m in the June 2018 quarter and is nearly twice what it was six years ago.

    https://i.stuff.co.nz/business/opini...-for-its-money

  2. #2
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    Here’s where you go to get information on getting government (taxpayer) money to help pay your mortgage or rent -

    https://www.workandincome.govt.nz/housing/live-in-home/index.html

    Here’s where you go to get information on how to get government (taxpayer) money to pay your house deposit or get a home loan -

    https://www.govt.nz/browse/housing-a...ur-first-home/

    Woohoo!! How good is the property market!! A river of government (taxpayer) money flows forth!!

  3. #3
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    Link for the free government (taxpayer) money for rent and mortgages here -

    https://www.workandincome.govt.nz/ho...ome/index.html

  4. #4
    Quiet Observer
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    New Zealand.
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    Default

    What a mess!

    Meanwhile Joe Bloggs is scratching their head wondering why the "property market fire" keeps getting wider, deeper, and BIGGER, and wondering where & when this will all end.

    It's akin to the forest arsonist actually being a firefighter from the local station. But not only that, this arsonist keeps throwing more fuel on the fire, all whilst supposedly "fighting the fire". Plus to add extra insult to injury, this arsonist is actually quietly taking that fuel from the town locals.

    Finally, to really rub ash in the wound, the firefighter-arsonist is interviewed by the local media. They comment that it is a "totally tragic situation" for the locals and that the Fire Department promises to fix ALL the forest fire problems in 2021. They also state that the authorities would step in, taxing all forest & fuel owners further, & put more regulations in place; basically disincentivize folk from investing in & owning these assets where the fires are being lit.

    Meanwhile The National Firefighters Union has announced that they will be investing further into the forestry market, buying & planting the most number of forests that they have since the 1970's.
    Last edited by FTG; 15-02-2021 at 02:47 PM.
    Success is a journey AND a destination!

  5. #5
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    The property looting scheme runs on hundreds of millions of government subsidies yearly, interest rates so low that money is being given away virtually for free, a steady stream of immigrants pouring in....and you look around and see the comments on-line, and it’s all put down to “it’s a lack of supply!!”

    Totally disingenuous of the populace of this country; they know exactly the reasons why the property market is in the state it is in, but none of them want their interest rates to go up or their supply of cheap credit to be cut off. None of them want the river of government subsidies to cease. But why not be honest about it? Why be so lacking in integrity that you can’t admit that all the government and Reserve Bank are doing is pouring can after can of petrol on the conflagration with their ultra-loose monetary and fiscal policies?
    Last edited by Logen Ninefingers; 31-01-2021 at 09:40 PM.

  6. #6
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    “Ooooeeeerr...it’s a lack of supply!!!!!”

    What a total crock / outright lie.

    —————

    https://www.interest.co.nz/property/...ers-are-rising

    More than a 1000 new homes a month were built in Auckland in the year to November and the numbers are rising

    30th Jan 21, 9:02am
    by Greg Ninness

    The number of new homes being built in Auckland continues to increase at a cracking pace.
    The latest figures from Auckland Council show that it issued 1581 Code Compliance Certificates for new dwellings in November last year, up 41% compared to November 2019.
    That brought the total number of new homes completed in Auckland to 12,054 in the 12 months to November, up 15% compared to the previous 12 months (see chart below for the monthly trend).

  7. #7
    Advanced Member
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    Wellington, , New Zealand.
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    Average taxpayer subsidy to private sector renters and mortgagors via Accommodation Supplement - $100 pw. Average taxpayer subsidy for social housing via income related rent - $300 pw. Main reason the social housing waiting list is rocketing up. Plus the changes in the rental sector that discourage landlords from taking on or even keeping less than ideal tenants.

  8. #8
    Quiet Observer
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    Jun 2005
    Location
    New Zealand.
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    So Artemis, the $37m pw Logen Ninefingers points to above is that just for the private sector, or is that total?

    If just private sector then you are indicating the social housing cost would be running at about $110m pw. Crazy stuff if true....but surely not?
    Success is a journey AND a destination!

  9. #9
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    Wellington, , New Zealand.
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    Default

    Quote Originally Posted by FTG View Post
    So Artemis, the $37m pw Logen Ninefingers points to above is that just for the private sector, or is that total?

    If just private sector then you are indicating the social housing cost would be running at about $110m pw. Crazy stuff if true....but surely not?
    The $37 mill a week is just the private sector Accommodation Supplement for 360,000 households, and does not include other housing related subsidies like TAS ($6 mill pw) and a bunch of other subsidies. Income related rent (social housing) is $21 million a week for 70,000 households. Sep 2020 numbers from HUD.

    Very expensive business!

  10. #10
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    Aug 2012
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    Quote Originally Posted by Logen Ninefingers View Post
    A multi-million-dollar subsidy flows each week to landlords around the country – and the amount handed over is growing quickly.

    But this isn’t the stream of private market capital gains, which deliver a serious windfall to property investors in years like the one we’ve just had. This is taxpayer money delivered from the Government.

    The accommodation supplement bill is increasing rapidly: The supplement cost just more than $37 million a week in the September 2020 quarter, up from $27.1m in the June 2018 quarter and is nearly twice what it was six years ago.

    https://i.stuff.co.nz/business/opini...-for-its-money
    Real estate owners are the country's most entitled beneficiaries, through these indirect subsidies and the effect of taxation policies. This Labour Government will not change that, and will probably further exacerbate it.

    Owner-occupiers are effectively subisidised too of course. The net returns on their leveraged equity invested is not taxed. Neither capital gains nor net imputed rent are taxed.

    Other countries have had a incentivised pension scheme with tax concessions. For NZ it was leveraged real estate investment, whether owner-occupied or rental property ownership. Comparatively recently Kiwsaver was introduced - with a few grudging minimal concessions.
    Last edited by Bjauck; 01-02-2021 at 06:51 AM.

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