The Governments housing changes have been universally condemned as inept by property experts, bankers, tenant advocates and property investors.
I am proud of the scheme I set up as Housing Minister in 2015 that has helped 88,000 first home buyers fund their deposit with a grant of up to $20,000. The numbers plummeted last year because with escalating prices few could find homes under the price caps. These were locally $500,000 for an existing home or $550,000 for a new home. I called for them to be raised to $700,000 and $750,000.
Nelson’s Labour MP says it is exciting news for Nelson first home buyers that the cap is increasing on 1st April to $525,000 and $600,000. The median home price in Nelson is $730,000. Young people have been told by both National and Labour Governments to join up to Kiwisaver, contribute for 5 years so they can get a grant to help with a home deposit but now feel duped. They can’t get the promised grant because there are few if any houses in Nelson below the new caps.
Labour has learnt nothing from Kiwibuild where they promised Nelson 1000 affordable homes. None have been built and none are now planned. The mistake is not listening to Nelson’s building and housing sector.
The radical tax changes will push rents up. These changes directly contradict what Labour promised at Election 2020. Treasury and IRD opposed the changes. It is galling Labour calls interest deductibility a “loophole”. Rents have already risen by $120 per week under Labour and are estimated to go up another $80 per week with these tax changes.
No one expects an instant answer to New Zealand’s housing problems. The problem for Labour is that after four years it has got much worse with rents, house prices, state housing waiting lists and numbers in motels all skyrocketing. It will get worse with these changes.
