Houses are seriously unaffordable, especially for first-time buyers.
Labour has proposed a capital gains tax, to try and take some of the heat out of the speculative market (cash rich investors snapping up all the houses for capital gain), and KiwiBuild to build 10,000 new houses over the next ten years. These policies will help first-time buyers.
The Reserve Bank under the current government is proposing tougher requirements (a higher deposit) on mortgage loans. This policy will make it even more difficult for first-timers. It isn’t proving popular:
Growing opposition to Reserve Bank housing restrictions
Getting a mortgage to buy a house could be about to get a lot harder. The Reserve Bank’s inching towards restricting the amount of money banks can lend to certain customers, in an attempt to cool down a red-hot property market. But that could put mortgages out of reach for many first-time buyers.
…in most cases, buyers will have to save up a bigger deposit, perhaps 20 percent, which, for a $500,000 house, would be $100,000.
… Labour wants an exemption for first-home buyers. “They’re going to make it much tougher, particularly for low and middle-income first home buyers, to get into the housing market,” says Labour housing spokesman Phil Twyford. “And bizarrely they’re actually going to give an advantage to property investors and speculators.”
Housing is a deal-breaker. It is a major issue for young families and workers, it is a major issue for many of the boomer generation who are wondering if their children will ever own homes of their own.
First-time buyers are much better off under Labour’s policy settings. The only way to get them is to vote Left. Parties of the Left – take this issue and run hard!