Labour govt 2020-23

[Logen Ninefingers]

The alternative is deflation and the effects of that.
The current policy is good all round but there are side effects. I'd rather have that problem than everything else though.

For many kiwis housing is their retirement plan and they don't really want it solved. Similar to australia and the UK in this respect.

I truly and sincerely believe people like you are the real problem. The property 'market' (ponzi scheme) is a government guaranteed rort that is costing us billions and will end up costing us trillions. The syphoning of taxpayer money into the pockets of speculators is happening in many forms, not least of which is landlords increasing rents and taxpayers paying for it via 'accomodation supplements' (taxpayer subsidies).....which further incentivizes investing in the housing 'market' and leads to higher house prices. It is a vicious cycle with no end in sight.

Just saying housing is many people's retirement plan is a rather bland answer. Fair enough to have a plan for retirement, but this system of outrageously large capital gains sustained and gauranteed by central bank / government stimulus and subsidies & suppression of interest rates....it is just taking the p*ss, it really is.

Unfortunately for everyone, a large group of very greedy and entitled people are leadimng the country down the road to hell.

[macduffy]

Tens of thousands of vacant rentals, homes for sale (including Kiwibuild) and ads for flatmates. Maybe those in emergency housing should be supported into some of them. Cheaper than motels. And they are already there and built right now.

Maybe it is not so much an actual shortage then.

It doesn't help much if the unsold Kiwibuild homes are in, say, Wanaka - which some were - but the unhoused families are in, say, Auckland. I don't think there is much doubt that there is an actual shortage of housing in places where it's needed.

[artemis]

It doesn't help much if the unsold Kiwibuild homes are in, say, Wanaka - which some were - but the unhoused families are in, say, Auckland. I don't think there is much doubt that there is an actual shortage of housing in places where it's needed.

Quite a few Kiwibuild places available in Auckland.

[Balance]

Quite a few Kiwibuild places available in Auckland.

Now why would anyone (in the right mind) buy (and invest) in a Kiwibuild home if they know what they are doing?

I have heard stories of owners waking up one fine morning and find that state tenants have moved in next door, and bluntly, we all know what that means for property values.

[artemis]

Now why would anyone (in the right mind) buy (and invest) in a Kiwibuild home if they know what they are doing?

I have heard stories of owners waking up one fine morning and find that state tenants have moved in next door, and bluntly, we all know what that means for property values.

Completely agree. Buyers have to live in their purchase for a 3 year period and not necessarily with nice marketing managers and junior doctors next door. Though I hear on the grapevine that it is easy enough to get an exemption. Then the buyers will move on and tenants will move in. Huge developments like Unitec were to be a mix of Kiwibuild, social housing and private sector.

No need to hold our breath though - it was estimated that at current progress Kiwibuild would be done and dusted in 400 years. Of course that was before the Great Kiwibuild Reset and now there seems to be no plan at all.

[Balance]

Emergency accommodation is wasted in the sense that it would be better to have real houses instead. But you can't divert that emergency money into houses as then there would be a bunch of people on the street in the meantime (while the houses were built).
Rental subsidies of some sort will always be necessary as part of the welfare state - unless we pay people more and many don't seem to like that idea (people against raising the minimum wage).

Not a simple problem and there won't be a simple solution.

NZ desperately needs a circuit breaker to stop this vicious cycle now of high rents for those who cannot afford ever increasing house prices which in turn push rents up even higher etc etc etc.

I honestly thought Kiwibuild was a brilliant idea which coupled with a CGT would be the circuit breaker.

Unfortunately ....

[dobby41]

NZ desperately needs a circuit breaker to stop this vicious cycle now of high rents for those who cannot afford ever increasing house prices which in turn push rents up even higher etc etc etc.

I honestly thought Kiwibuild was a brilliant idea which coupled with a CGT would be the circuit breaker.

Unfortunately ....

You're right - we do.
And to get there we need more investment before we can make the savings.
Kiwibuild was a good idea but the numbers were never going to work.

[FTG]

The alternative is deflation and the effects of that.
The current policy is good all round but there are side effects. I'd rather have that problem than everything else though.

For many kiwis housing is their retirement plan and they don't really want it solved. Similar to australia and the UK in this respect.

Sort of akin to an alcoholic who would rather remain in a drunken state so they don't have to experience the painful hangover.

Panda; don't lose sight of the painful reality that ALL artificial "highs" will eventually be followed by artificial lows.

[Balance]

Sort of akin to an alcoholic who would rather remain in a drunken state so they don't have to experience the painful hangover.

Panda; don't lose sight of the painful reality that ALL artificial "highs" will eventually be followed by artificial lows.

Not with property.

[artemis]

NZ desperately needs a circuit breaker to stop this vicious cycle now of high rents for those who cannot afford ever increasing house prices which in turn push rents up even higher etc etc etc.

I honestly thought Kiwibuild was a brilliant idea which coupled with a CGT would be the circuit breaker.

Unfortunately ....

Well what about substantially and temporarily increasing the Accommodation Supplement for those in emergency housing. Give them a couple of hundred a week extra for 6 months, paid to the landlord, plus budgeting support. Other things being equal that will make it possible for them to pay private sector rents.