Andrew Little’s speech: Backing the Kiwi dream of home ownership
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- Date published:
2:47 pm, July 10th, 2016 - 176 comments
Categories: Andrew Little, housing, labour, Politics -
Tags: homeless crisis
Tēnā koutou katoa
Can I begin by acknowledging Annette King.
Annette is an incredible Deputy Leader and a real source of counsel, wisdom and advice.
Can I also acknowledge the local MP David Cunliffe, and Phil Twyford our fantastic housing spokesperson.
You’ve never seen Nick Smith look so scared as when Phil gets up to ask him a question in the house.
I see mayoral candidate Phil Goff is here today. Phil I want to say how exciting it is to think what we will achieve for Auckland with you as mayor and Labour in government.
Can I also acknowledge other caucus colleagues and I want to make special mention of a soon to be colleague, even though he can’t be here today: the next MP for Mt Roskill, Michael Wood.
I had the pleasure of attending Michael’s campaign launch last month, and he has a great team that are working hard to deliver a Labour win in Mt Roskill at the end of the year.
We’re here today to celebrate 100 years of the Labour Party.
Here to celebrate generations of men and women who have come together to make this a better country.
We’re here to celebrate Labour’s creation of the welfare state, the achievements of widespread home ownership and the creation of state housing, a free health system and a free education system.
In short, we celebrate the building of a nation.
We celebrate and we remember the image of Michael Joseph Savage carrying the very first furniture into the very first state house.
Offering hope to people that the years of depression were over and there were brighter days ahead.
We’re here to celebrate the beginning of the reconciliation between Maori and Pakeha and the restoration of the mana of the Treaty of Waitangi.
We’re celebrating the decision to make New Zealand nuclear free. We celebrate the courage shown by thousands of New Zealanders who marched against the Springbok Tour.
We’re celebrating KiwiBank. Kiwisaver. Working for Families. The Cullen Fund.
We celebrate Homosexual Law Reform and we remember the scene of the packed galleries in Parliament rising in song after we passed Marriage Equality.
These are Labour achievements.
This is the legacy of our party.
A better, stronger, prouder country.
Today, we celebrate these achievements and we look to the future.
At the heart of our political philosophy, at the heart of all of our achievements, lies a profound sense of optimism.
An enduring belief in our shared power to make a difference.
A belief in our common ability to come together to solve the great challenges of the day.
The power of humanity, acting together, for the dignity of humankind.
We believe that as strongly today as our forebears did 100 years ago.
And this approach is desperately needed in New Zealand today.
Because still, after 100 years, there is so much work left to do.
Today, we have a government that has failed to tackle the big challenges facing our country; that has failed to stand up for most New Zealanders.
After eight years, this government’s lost touch.
And nowhere, nowhere, is this government more out of touch and out of ideas than on housing.
Housing is at the core of a good life.
It provides security and stability.
It helps families put down roots in their communities and save for retirement
It is one of the most common sources of capital for people setting up their own small business.
The ambition of widespread homeownership sits at the heart of our social contract. It is at the heart of the Kiwi Dream.
The promise that if you work hard and do the right thing, you can earn a place of your own.
But under this government, all of that is slipping away.
We all know New Zealand has a housing crisis.
I know it, you know it, the Reserve Bank knows it.
Everyone in Auckland knows it.
The rest of New Zealand knows it.
The only people who don’t think New Zealand has a housing crisis all just happen to work in the Beehive.
Under National, home ownership is at its lowest level in 65 years.
Since 2008, when this government came to office, the average house price in Auckland has nearly doubled.
But over the same period, incomes have increased by only 24%.
In the last year, house prices in Auckland have increased by $2600 a week.
Twenty six hundred dollars a week.
It’s crazy. How on earth do you save enough to keep up with that?
And look, behind all of these figures are real people who are missing out.
One of those people wrote to me recently, a young woman named Jen, she talked about what it was like for her and her partner trying to buy their first home.
She said “I work damn hard, so does my partner, working three jobs to try and save for a home” but she says “We were told that our 550k budget was laughable and made to feel like we could never own our own home.”
People like Jen and her partner, they deserve better.
They’re young, they’re hard working, they’re ambitious.
They’re exactly the type of people this government should be standing up for, instead of shutting them out.
But instead the government is siding with the speculators, the people trying to make big money out of our housing market at the expense of families looking for homes.
The proportion of Auckland houses being bought by investors has now reached 46% – around twice the level of first home buyers.
But it isn’t just first home buyers that are hurt by this crisis.
Even those who are lucky enough, often with the help of their parents, to scrape together enough for a deposit, are hurt by this crisis.
People who know they are winners on paper, but who could never actually sell their house because they would never be able to buy another one in this market.
People who can’t realise their equity because doing so would mean having to move far away from their jobs or their kid’s schools.
People who live in mortal fear of a bump in interest rates, because they know they could never keep up with the mortgage if rates rise by even a couple of per cent.
And then there is the hard edge of the crisis.
The rising poverty and homelessness that National turns a blind eye to.
We’ve all heard the stories of Kiwi kids admitted to hospitals with respiratory illnesses because the cold damp homes they have to live in are making them sick.
We’ve all seen the awful media reports in the last few weeks about what life is like for those who can’t find any home at all.
Of the 42,000 people living in overcrowded conditions or in garages or in cars.
Of children sleeping under bushes in South Auckland.
We’ve seen the story of the 11 year old girl, whose mother has a job, but whose family spent months living in a van before they were taken in by Te Puea Marae.
She said that the hardest part is actually not being able to read in the van, because you don’t have space. And there’s not much light because it would waste the battery.
When did this become the New Zealand we lived in?
When did we decide we wanted to make buying your first home so difficult, or living with a mortgage so tough?
When did we decide widespread poverty and homelessness was ok?
National wants us to believe this is just the way things are, that we don’t have a choice and there’s nothing we can do about it.
Well they might have given up, but I won’t. Not now, not ever.
The truth is, this Government is nowhere when it comes to housing.
They don’t have the political will to look at real solutions, so instead we’ve seen them flail from gimmick to gimmick.
Remember the plan to pay people to move away from Auckland, just a few weeks after they said they were going to pay people to move to Auckland?
Remember the announcement about emergency housing, that turned out wasn’t going to lead to a single extra bed?
And then their big key note announcement: letting a few councils borrow a bit more money for infrastructure – and then it turned out the money wasn’t enough to cover just the cost of one big pipe in Auckland.
And you know the saddest thing about these failures? They’re just from the last few weeks – it’s been eight years of this under National.
This government has completely failed on housing.
The Prime Minister doesn’t know what to do.
Not one of the three Housing Ministers know what to do.
And let me be clear:
New Zealanders don’t have time to wait and hope National will bumble their way into a solution.
After eight years, it’s very clear.
If we want to deal with the housing crisis: that lot has to go.
We’ve got to change the government.
Because the truth is it doesn’t have to be like this.
We can fix it, and together, we will.
Today, I want to lay out Labour’s comprehensive plan to fix the housing crisis.
It’s the plan we will be taking into the next election.
It’s a plan that will restore opportunity for first home buyers, give a fair shot to the next generation and solve the homelessness problem this government has ignored.
We will attack the housing crisis from every angle, starting with the devastating lack of supply.
We’ll start by urgently building enough emergency housing to support those in need.
We’re going to fix the homelessness problem that National has ignored for far too long.
This week, I announced that Labour will urgently address the shortage of emergency housing – with $60 million to provide 1400 new beds in emergency accommodation – enough for 5100 extra people a year.
With the existing support that will take the number of people helped each year to over 8,000.
But it isn’t just the homeless, we need to do more to ensure everyone has access to modern, warm, dry homes.
Yesterday I announced that Labour will reform housing New Zealand – so that instead of being run like a corporation making a profit off the most vulnerable, we can invest hundreds of millions of dollars in building thousands of new, modern, high quality state houses instead.
But we won’t stop there.
The next part of Labour’s plan is one that somehow none of the Government’s three housing Ministers seem to have been able to come up with.
There aren’t enough affordable homes, so we’re going to build more.
Now, the Government’s been really struggling with this concept, so let me say it again:
When there’s a housing crisis, you need to build more bloody homes.
That is what Labour is going to do.
That’s how we’re going to fix this crisis.
The next Labour Government will build 100,000 new affordable homes to be on sold to first home buyers.
Working with the private sector and experts in fields like prefabrication, we can build standalone homes for $500,000-$600,000 in Auckland, with apartments and town houses for less than $500,000
With the average house price in Auckland now about to hit a million dollars this is a big move in the right direction. This will stabilise prices and give people a fair shot again.
Affordable housing developments like Waimahia are already able to build 3 bedroom homes for $550,000 but imagine what we could do building at scale across Auckland.
Now, these homes won’t be palaces. But they will be modern, warm, and affordable, first homes to help people get a foot on the housing ladder.
To get these houses built, we’re also going to do more to free up land for new greenfields developments.
That’s why Labour will abolish the Auckland urban growth boundary that has been driving up the price of land.
We’ll replace it with a smarter way to manage urban growth that will shut down the land bankers and speculators by cutting off their profits.
And to make sure there we can deliver these homes, we need to be growing the construction workforce.
Earlier this year, I announced our Dole for Apprenticeships policy which will take on an extra 4000 young people for jobs training in fields including building and construction. Our policy of three-years’ free post-school education and training will add thousands of skilled workers to the workforce. KiwiBuild will also provide a pipeline of future work for the building industry as the work of the Canterbury rebuild nears completion, freeing up more workers.
100,000 houses will make a real difference to Kiwi families. It will go a long way towards helping families get into their first home.
But we can go even further. The scale of the challenge demands that we must.
Today, I want to add the next part of our plan to restore the Kiwi Dream.
Just like freeing up restrictive urban growth controls, this announcement is about cutting through the barriers that stop us building homes and letting the private sector crack on with the job.
It’s simple: The country needs more houses built, it needs them urgently, and it needs them in well-designed communities with all the services and utilities people need.
Building on that scale gets complicated. With the need for infrastructure, and dealing with different land owners, it can easily get too risky for private developers.
Just getting a change to the Council plan can take several years.
This is an urgent crisis, we can’t afford delays like that. If we want to deal with the housing crisis, we’ve got to cut through these delays and get cracking on building homes fast.
Which is why today I am announcing that Labour in government will set up an Affordable Housing Authority to deliver ambitious new urban development projects, at scale and at pace.
We are going to change the face of our towns and cities, and fix this housing crisis.
Our Affordable Housing Authority will roll up its sleeves and build like we haven’t seen in this country for a long time.
It will lead and master-plan the building of new communities and the revitalisation of old ones.
It will partner with developers to deliver thousands and thousands of high-quality affordable homes, in communities Kiwis will be proud to live in.
The Authority will have a target to meet: 50% across all of the homes in its developments will have to be affordable.
Under National, that number has been as low as 5%.
The Authority will look after the Government’s urban land holdings, and will make sure there is a pipeline of land for future needs – for housing, business, schools, parks and hospitals.
At the local level it will partner with others: the local Council, iwi and private investors to form development companies which will manage the projects.
The Affordable Housing Authority will allow us to turbo charge the scale of urban development so desperately needed in Auckland.
Imagine 10 or 15 projects on the scale of a Hobsonville or a Tamaki.
There is huge potential in greenfield areas like Drury, Whenuapai, and Kumeu while within the city there are opportunities to redevelop around the city centre and in town centres like Henderson and Manukau.
And this is not just about Auckland.
All around the country there are towns and cities who want to revitalise neighbourhoods and town centres.
With the Affordable Housing Authority on their side, they will be able to. The Authority will be able to lead redevelopment projects in places like South Dunedin and the East Frame in Christchurch.
The funny thing is, this is not a new idea. The First Labour Government planned and built ambitious new communities with parks, and community centres.
As with KiwiBuild we are drawing inspiration from the greatest generation to find solutions for the 21st century.
This approach to urban development is widely used overseas, including in Australia.
And it has been endorsed by the Productivity Commission, and the leading lights in the property industry here.
This is a common-sense, achievable way to get homes build.
It’s long overdue, it’s widely supported.
And Labour will do it.
But we can’t just fix the supply issues, we have to fix the problems with demand as well.
We urgently need to clamp down on the speculators who are driving up the prices.
I have no sympathy for speculators and land bankers who are just in the market to make a quick buck. Not when families are missing out.
So we’ll start by cracking down on the offshore speculators – the people who don’t live here, don’t want to live here, whose only interest in New Zealand is to extract profits.
We’ll ban offshore buyers from the market unless they are willing to build a new home and add to the stock.
It’s a common sense idea, supported by a big majority of New Zealanders, and it’s been staring the government in the face for years.
But there’s more we need to do.
Right now, there’s no doubt that the way our tax system is designed gives speculators enormous incentives to wreak havoc in our housing market, allowing them to reap super profits practically tax free.
The government has a piecemeal response to this – a bright line test of just two years that means as long as a speculator holds on to a property for two years and one day, they can flick it on without paying any tax on the profit.
That’s not good enough in the midst of a housing crisis.
What’s more, our rules around negative gearing encourage speculation as well.
The way this works is investors are able to write off any losses they make in property investment against the rest of their income for tax purposes.
That means other taxpayers pick up the tab – its effectively a taxpayer subsidy for speculation.
If homeowners cannot claim their mortgage payments against their taxes why should speculators?
Taken together, these rules give a boost to the speculators, and gives them an unfair advantage over first home buyers.
That’s not right, and it can’t continue.
In government, Labour will hold a comprehensive review of our tax system, to restore fairness and balance between the productive and speculative parts of our economy.
But it has become clear to me that we can’t wait.
The crisis is urgent.
That’s why today I am announcing that the Government I lead will extend the bright line test so that if you sell an investment property within five years, you’ll pay the full tax on it.
That means the short term speculators won’t be able to get away tax free anymore. It means ending the tax incentives to speculate in short term property gains at the expense of families trying to get into a home.
But we won’t stop there.
I am announcing today that Labour will begin consulting on how to end the loop hole of negative gearing.
We’ll do this in a way that’s targeted at speculators, not investors looking for a stable, long term return.
Under Labour, the market won’t be stacked in favour of speculators anymore – we’ll back families and first home buyers. We’ll back the Kiwi Dream.
These announcements make it very clear: Labour is the party of home ownership in New Zealand today.
That’s what we stand for and that’s what my government will deliver.
For 100 years now, Labour has stood for security and opportunity for every New Zealander.
A good job. A good life for your family. Good education. Healthcare that’s there for you when you need it.
And a home you can call your own.
For generations, Labour members and supporters have made this a better, more decent, more caring country.
Today, it’s our turn to continue that mission.
Next year, New Zealanders will have a clear choice.
On the one hand a tired, out of touch government that will do nothing to solve the housing crisis.
That will deliver three more years like the last eight.
Falling home-ownership, substandard rentals.
A housing crisis with no end in sight.
Or New Zealand can choose a better way
They can choose to build affordable homes.
To cut through the red tape and get the job done.
To crack down on foreign speculators.
To bring in proper rental standards.
To stop tolerating homelessness and start giving Kiwis in need a roof over their heads.
That’s the choice in front of us next year.
And together, New Zealand, we can make the right choice.
We can choose to end the housing crisis.
We can choose to restore opportunity to our young people.
We can choose to make this a better, fairer country once again.
Together, let’s go make it happen.
Thank you.
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- How to Unlock Your Computer A Comprehensive Guide to Regaining AccessExperiencing a locked computer can be frustrating, especially when you need access to your files and applications urgently. The methods to unlock your computer will vary depending on the specific situation and the type of lock you encounter. This guide will explore various scenarios and provide step-by-step instructions on how ...2 days ago
- Faxing from Your Computer A Modern Guide to Sending Documents DigitallyWhile the world has largely transitioned to digital communication, faxing still holds relevance in certain industries and situations. Fortunately, gone are the days of bulky fax machines and dedicated phone lines. Today, you can easily send and receive faxes directly from your computer, offering a convenient and efficient way to ...2 days ago
- Protecting Your Home Computer A Guide to Cyber AwarenessIn our increasingly digital world, home computers have become essential tools for work, communication, entertainment, and more. However, this increased reliance on technology also exposes us to various cyber threats. Understanding these threats and taking proactive steps to protect your home computer is crucial for safeguarding your personal information, finances, ...2 days ago
- Server-Based Computing Powering the Modern Digital LandscapeIn the ever-evolving world of technology, server-based computing has emerged as a cornerstone of modern digital infrastructure. This article delves into the concept of server-based computing, exploring its various forms, benefits, challenges, and its impact on the way we work and interact with technology. Understanding Server-Based Computing: At its core, ...2 days ago
- Vroom vroom go the big red trucks
The absolute brass neck of this guy.We want more medical doctors, not more spin doctors, Luxon was saying a couple of weeks ago, and now we’re told the guy has seven salaried adults on TikTok duty. Sorry, doing social media. The absolute brass neck of it. The irony that the ...2 days ago - Jones finds $410,000 to help the government muscle in on a spat projectBuzz from the Beehive Oceans and Fisheries Minister Shane Jones relishes spatting and eagerly takes issue with environmentalists who criticise his enthusiasm for resource development. He relishes helping the fishing industry too. And so today, while the media are making much of the latest culling in the public service to ...2 days ago
- Again, hate crimes are not necessarily terrorism.
Having written, taught and worked for the US government on issues involving unconventional warfare and terrorism for 30-odd years, two things irritate me the most when the subject is discussed in public. The first is the Johnny-come-lately academics-turned-media commentators who … Continue reading ...2 days ago - Despair – construction consenting editionEric Crampton writes – Kainga Ora is the government’s house building agency. It’s been building a lot of social housing. Kainga Ora has its own (but independent) consenting authority, Consentium. It’s a neat idea. Rather than have to deal with building consents across each different territorial authority, Kainga Ora ...2 days ago
- Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?Muriel Newman writes – The Coalition Government says it is moving with speed to deliver campaign promises and reverse the damage done by Labour. One of their key commitments is to “defend the principle that New Zealanders are equal before the law.” To achieve this, they have pledged they “will not advance ...2 days ago
- An impermanent public service is a guarantee of very little else but failureChris Trotter writes – The absence of anything resembling a fightback from the public servants currently losing their jobs is interesting. State-sector workers’ collective fatalism in the face of Coalition cutbacks indicates a surprisingly broad acceptance of impermanence in the workplace. Fifty years ago, lay-offs in the thousands ...2 days ago
- What happens after the war – Mariupol
Mariupol, on the Azov Sea coast, was one of the first cities to suffer almost complete destruction after the start of the Ukraine War started in late February 2022. We remember the scenes of absolute destruction of the houses and city structures. The deaths of innocent civilians – many of ...2 days ago - Babies and benefits – no good newsLindsay Mitchell writes – Ten years ago, I wrote the following in a Listener column: Every year around one in five new-born babies will be reliant on their caregivers benefit by Christmas. This pattern has persisted from at least 1993. For Maori the number jumps to over one in three. ...2 days ago
- Should the RBNZ be looking through climate inflation?
2 days ago - Bernard's pick 'n' mix of the news links
The top six news links I’ve seen elsewhere in the last 24 hours, as of 9:16 am on Thursday, April 18 are:Housing: Tauranga residents living in boats, vans RNZ Checkpoint Louise TernouthHousing: Waikato councillor says wastewater plant issues could hold up Sleepyhead building a massive company town Waikato Times Stephen ...2 days ago - Gordon Campbell on the public sector carnage, and misogyny as terrorismIt’s a simple deal. We pay taxes in order to finance the social services we want and need. The carnage now occurring across the public sector though, is breaking that contract. Over 3,000 jobs have been lost so far. Many are in crucial areas like Education where the impact of ...2 days ago
- Meeting the Master Baiters
Hi,A friend had their 40th over the weekend and decided to theme it after Curb Your Enthusiasm fashion icon Susie Greene. Captured in my tiny kitchen before I left the house, I ending up evoking a mix of old lesbian and Hillary Clinton — both unintentional.Me vs Hillary ClintonIf you’re ...2 days ago - How extreme was the Earth's temperature in 2023This is a re-post from Andrew Dessler at the Climate Brink blog In 2023, the Earth reached temperature levels unprecedented in modern times. Given that, it’s reasonable to ask: What’s going on? There’s been lots of discussions by scientists about whether this is just the normal progression of global warming or if something ...2 days ago
- Backbone, revisited
The schools are on holiday and the sun is shining in the seaside village and all day long I have been seeing bunches of bikes; Mums, Dads, teens and toddlers chattering, laughing, happy, having a bloody great time together. Cheers, AT, for the bits of lane you’ve added lately around the ...3 days ago - Ministers are not above the lawToday in our National-led authoritarian nightmare: Shane Jones thinks Ministers should be above the law: New Zealand First MP Shane Jones is accusing the Waitangi Tribunal of over-stepping its mandate by subpoenaing a minister for its urgent hearing on the Oranga Tamariki claim. The tribunal is looking into the ...3 days ago
- What’s the outfit you can hear going down the gurgler? Probably it’s David Parker’s Oceans Sec...Buzz from the Beehive Point of Order first heard of the Oceans Secretariat in June 2021, when David Parker (remember him?) announced a multi-agency approach to protecting New Zealand’s marine ecosystems and fisheries. Parker (holding the Environment, and Oceans and Fisheries portfolios) broke the news at the annual Forest & ...3 days ago
- Will politicians let democracy die in the darkness?Bryce Edwards writes – Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. ...3 days ago
- Matt Doocey doubles down on trans “healthcare”Citizen Science writes – Last week saw two significant developments in the debate over the treatment of trans-identifying children and young people – the release in Britain of the final report of Dr Hilary Cass’s review into gender healthcare, and here in New Zealand, the news that the ...3 days ago
- A TikTok Prime Minister.
One night while sleeping in my bed I had a beautiful dreamThat all the people of the world got together on the same wavelengthAnd began helping one anotherNow in this dream, universal love was the theme of the dayPeace and understanding and it happened this wayAfter such an eventful day ...3 days ago - Texas LessonsThis is a guest post by Oscar Simms who is a housing activist, volunteer for the Coalition for More Homes, and was the Labour Party candidate for Auckland Central at the last election.
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3 days ago - Bernard's pick 'n' mix of the news links at 6:06 am
The top six news links I’ve seen elsewhere in the last 24 hours as of 6:06 am on Wednesday, April 17 are:Must read: Secrecy shrouds which projects might be fast-tracked RNZ Farah HancockScoop: Revealed: Luxon has seven staffers working on social media content - partly paid for by taxpayer Newshub ...3 days ago - Fighting poverty on the holiday highwayTurning what Labour called the “holiday highway” into a four-lane expressway from Auckland to Whangarei could bring at least an economic benefit of nearly two billion a year for Northland each year. And it could help bring an end to poverty in one of New Zealand’s most deprived regions. The ...3 days ago
- Bernard's six-stack of substacks at 6:26 pm
Tonight’s six-stack includes: launching his substack with a bunch of his previous documentaries, including this 1992 interview with Dame Whina Cooper. and here crew give climate activists plenty to do, including this call to submit against the Fast Track Approvals bill. writes brilliantly here on his substack ...4 days ago - At a glance – Is the science settled?On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...4 days ago
- Apposite Quotations.
4 days ago - What’s a life worth now?
You're in the mall when you hear it: some kind of popping sound in the distance, kids with fireworks, maybe. But then a moment of eerie stillness is followed by more of the fireworks sound and there’s also screaming and shrieking and now here come people running for their lives.Does ...4 days ago - Howling at the MoonKarl du Fresne writes – There’s a crisis in the news media and the media are blaming it on everyone except themselves. Culpability is being deflected elsewhere – mainly to the hapless Minister of Communications, Melissa Lee, and the big social media platforms that are accused of hoovering ...4 days ago
- Newshub is Dead.
I don’t normally send out two newsletters in a day but I figured I’d say something about… the news. If two newsletters is a bit much then maybe just skip one, I don’t want to overload people. Alternatively if you’d be interested in sometimes receiving multiple, smaller updates from me, ...4 days ago - Seymour is chuffed about cutting early-learning red tape – but we hear, too, that Jones has loose...Buzz from the Beehive David Seymour and Winston Peters today signalled that at least two ministers of the Crown might be in Wellington today. Seymour (as Associate Minister of Education) announced the removal of more red tape, this time to make it easier for new early learning services to be ...4 days ago
- Bryce Edwards: Will politicians let democracy die in the darkness?Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. Our political system is suffering from the ...4 days ago
- Was Hawkesby entirely wrong?David Farrar writes – The Broadcasting Standards Authority ruled: Comments by radio host Kate Hawkesby suggesting Māori and Pacific patients were being prioritised for surgery due to their ethnicity were misleading and discriminatory, the Broadcasting Standards Authority has found. It is a fact such patients are prioritised. ...4 days ago
- PRC shadow looms as the Solomons head for electionPRC and its proxies in Solomons have been preparing for these elections for a long time. A lot of money, effort and intelligence have gone into ensuring an outcome that won’t compromise Beijing’s plans. Cleo Paskall writes – On April 17th the Solomon Islands, a country of ...4 days ago
- Climate Change: Criminal ecocideWe are in the middle of a climate crisis. Last year was (again) the hottest year on record. NOAA has just announced another global coral bleaching event. Floods are threatening UK food security. So naturally, Shane Jones wants to make it easier to mine coal: Resources Minister Shane Jones ...4 days ago
- Is saving one minute of a politician's time worth nearly $1 billion?Is speeding up the trip to and from Wellington airport by 12 minutes worth spending up more than $10 billion? Photo: Lynn Grieveson / The KākāTL;DR: The six news items that stood out to me in the last day to 8:26 am today are:The Lead: Transport Minister Simeon Brown announced ...4 days ago
- Fast-track submissions period must be extended
The Green Party has joined the call for public submissions on the fast-track legislation to be extended after the Ombudsman forced the Government to release the list of organisations invited to apply just hours before submissions close. ...18 hours ago - Release: Progress on climate will be undone by Govt
New Zealand’s good work at reducing climate emissions for three years in a row will be undone by the National government’s lack of ambition and scrapping programmes that were making a difference, Labour Party climate spokesperson Megan Woods said today. ...18 hours ago - Release: Dark day for Kiwi kids as a third of Govt cuts affect themNews that 1000 jobs at the Ministry of Education and Oranga Tamariki could go is devastating for future generations of New Zealanders. ...3 days ago
- Release: Alarm as Government signals further blow to school lunchesMore essential jobs could be on the chopping block, this time Ministry of Education staff on the school lunches team are set to find out whether they're in line to lose their jobs. ...3 days ago
- Release: Quick, submit – stop Govt’s dodgy approvals billThe Government is trying to bring in a law that will allow Ministers to cut corners and kill off native species, Labour environment spokesperson Rachel Brooking said. ...4 days ago
- Government throws coal on the climate crisis fireThe Government’s policy announced today to ease consenting for coal mining will have a lasting impact across generations. ...4 days ago
- Release: Public transport costs to double as National looks at unaffordable roading project insteadCancelling urgently needed new Cook Strait ferries and hiking the cost of public transport for many Kiwis so that National can announce the prospect of another tunnel for Wellington is not making good choices, Labour Transport Spokesperson Tangi Utikere said. ...5 days ago
- Release: Cost of living in Auckland still not a priorityA laundry list of additional costs for Tāmaki Makarau Auckland shows the Minister for the city is not delivering for the people who live there, says Labour Auckland Issues spokesperson Shanan Halbert. ...5 days ago
- Greens look to fast-track submissions on harmful lawThe Green Party has today launched a step-by-step guide to help New Zealanders make their voice heard on the Government’s democracy dodging and anti-environment fast track legislation. ...1 week ago
- Release: Govt should stop making people’s lives harder and build more homesThe National Government’s proposed changes to the Residential Tenancies Act will mean tenants can be turfed from their homes by landlords with little notice, Labour housing spokesperson Kieran McAnulty said. ...1 week ago
- Release: Melissa Lee missing in action on mediaThe action Melissa Lee promised to protect democracy and the media sector is missing, Media and Communications spokesperson Willie Jackson said. ...1 week ago
- Landlord Government leaves little hope for rentersThe Government’s announcement on tenancy rules prove that it does not care about renters. ...1 week ago
- Opportunity to build a more sustainable economyGreen Party co-leader Marama Davidson is calling on all parties to support a common-sense change that’s great for the planet and great for consumers after her member’s bill was drawn from the ballot today. ...1 week ago
- Significant step forward in fixing cruel and unjust pastA significant milestone has been reached in the fight to strike an anti-Pasifika and unfair law from the country’s books after Teanau Tuiono’s members’ bill passed its first reading. ...1 week ago
- Missed opportunity but NZ will surely one day recognise the right to a sustainable environmentNew Zealand has today missed the opportunity to uphold the right to a clean, healthy, and sustainable environment, says James Shaw after his member’s bill was voted down in its first reading. ...1 week ago
- Release: Don’t cut our lunches – clear message sent to GovernmentTens of thousands of people are demanding the Government commits to fully funding free and healthy school lunches. ...1 week ago
- Release: Govt makes U-turn on Suicide Prevention OfficeLabour welcomes the Government’s U-turn on the closure of the Suicide Prevention Office, says Labour Mental Health spokesperson Ingrid Leary. ...2 weeks ago
- CCC issues warning over further climate delayToday’s advice from the Climate Change Commission paints a sobering reality of the challenge we face in combating climate change, especially in light of recent Government policy announcements. ...2 weeks ago
- Luxon targets lame and lousy example of leadershipIf talk is cheap, Chris Luxon’s “targets” are bankrupt. ...2 weeks ago
- Luxon targets are lousy example of leadershipIf talk is cheap, Chris Luxon’s “targets” are bankrupt. ...2 weeks ago
- Release: Commitment to disability communities missing from Govt prioritiesMinister for Disability Issues Penny Simmonds appears to have delayed a report back to Cabinet on the progress New Zealand is making against international obligations for disabled New Zealanders. ...2 weeks ago
- Methane target review is dangerous duplicationThe Government’s newly announced review of methane emissions reduction targets hints at its desire to delay Aotearoa New Zealand’s urgent transition to a climate safe future, the Green Party said. ...2 weeks ago
- Release: Government must commit to school building project for disabled studentsThe Government must commit to the Maitai School building project for students with high and complex needs, to ensure disabled students from the top of the South Island have somewhere to learn. ...2 weeks ago
- Release: National must take mental health seriouslyMental Health Minister Matt Doocey and his Government colleagues have made a meal of their mental health commitments, showing how flimsy their efforts to champion the issue truly are, says Labour Mental Health spokesperson Ingrid Leary. ...2 weeks ago
- Referendums for Māori wards a racist step backwardsThe Government's imposed referendum on Māori wards is a racist step backwards for Māori representation, and disregards Te Tiriti o Waitangi. ...2 weeks ago
- Release: Job losses at Health not worth it for tax cutsNew Zealand will feel the harm of the National Government’s reckless cuts to jobs at the health ministry for generations, says Ayesha Verrall. ...2 weeks ago
- Press release: No Māori initiatives in Government’s nothing planMāori are yet to see anything from this Government except cuts, reversals and taking our people backwards, Māori Development spokesperson Willie Jackson said. ...2 weeks ago
- Thirty six point PR spinThe Government’s ‘36 point’ plan for the next three months is as pointless as it is hollow. ...3 weeks ago
- Thirty six point PR spinThe Government’s ‘36 point’ plan for the next three months is as pointless as it is hollow. ...3 weeks ago
- Thirty six point PR spinThe Government’s ‘36 point’ plan for the next three months is as pointless as it is hollow. ...3 weeks ago
- Release: Social housing off Government’s to-do listThe Coalition Government’s refusal to commit to ongoing funding for social housing is seeing the sector pull back on developments and families watch their dreams of securing a home fade away, says Labour Housing spokesperson Kieran McAnulty. ...3 weeks ago
- Release: Less money in most people’s pockets this AprilChanges to minimum wage and benefit indexation means many New Zealanders will get less this year, as the Government gives a big tax break to landlords instead. ...3 weeks ago
- PM’s South East Asia mission does the business
Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...2 hours ago - $41m to support clean energy in South East AsiaNew Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...18 hours ago
- Minister releases Fast-track stakeholder listThe Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...20 hours ago
- Judicial appointments announcedAttorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...21 hours ago
- Education Minister heads to major teaching summit in SingaporeEducation Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa. The summit is co-hosted ...22 hours ago
- Value of stopbank project proven during cycloneA stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...22 hours ago
- Anzac commemorations, Türkiye relationship focus of visitForeign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul. “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...22 hours ago
- Minister to Europe for OECD meeting, Anzac DayScience, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...1 day ago
- Comprehensive Partnership the goal for NZ and the PhilippinesPrime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr. The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...2 days ago
- Government commits $20m to Westport flood protectionThe Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...2 days ago
- Taupō takes pole positionThe Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...2 days ago
- Cost of living support for low-income homeownersLocal Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners. “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...2 days ago
- Government backing mussel spat projectThe Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...2 days ago
- Government focused on getting people into workBenefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...2 days ago
- Clean energy key driver to reducing emissionsThe Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...2 days ago
- Earthquake-prone buildings review brought forwardThe Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...2 days ago
- Thailand and NZ to agree to Strategic PartnershipPrime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...3 days ago
- Government consults on extending coastal permits for portsRMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...3 days ago
- Inflation coming down, but more work to doToday’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...3 days ago
- School attendance restored as a priority in health adviceRefreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...3 days ago
- Unnecessary bureaucracy cut in oceans sectorOceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...3 days ago
- Patterson promoting NZ’s wool sector at International CongressAssociate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector. "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...4 days ago
- Removing red tape to help early learners thriveThe Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...4 days ago
- RMA changes to cut coal mining consent red tapeChanges to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...4 days ago
- McClay reaffirms strong NZ-China trade relationshipTrade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...4 days ago
- Prime Minister Luxon acknowledges legacy of Singapore Prime Minister LeePrime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong. Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...5 days ago
- PMs Luxon and Lee deepen Singapore-NZ tiesPrime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong. During today’s meeting, Prime Minister Luxon ...5 days ago
- Antarctica New Zealand Board appointmentsForeign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner. The Minister has appointed Neville Harris as a new member of the Board. Mr ...5 days ago
- Finance Minister travels to Washington DCFinance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom. “I am looking forward to meeting with our Five Finance partners on how we can work ...5 days ago
- Pet bonds a win/win for renters and landlordsThe coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...5 days ago
- Long Tunnel for SH1 Wellington being consideredState Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...5 days ago
- New Zealand condemns Iranian strikesPrime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel. “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says. "We are deeply concerned that miscalculation on any side could ...5 days ago
- Huge interest in Government’s infrastructure plansHundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...1 week ago
- Health Minister thanks outgoing Health New Zealand ChairHealth Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board. “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti. “I have asked her to ...1 week ago
- Roads of National Significance planning underwayThe NZ Transport Agency (NZTA) has signalled their proposed delivery approach for the Government’s 15 Roads of National Significance (RoNS), with the release of the State Highway Investment Proposal (SHIP) today, Transport Minister Simeon Brown says. “Boosting economic growth and productivity is a key part of the Government’s plan to ...1 week ago
- Navigating an unstable global environmentNew Zealand is renewing its connections with a world facing urgent challenges by pursuing an active, energetic foreign policy, Foreign Minister Winston Peters says. “Our country faces the most unstable global environment in decades,” Mr Peters says at the conclusion of two weeks of engagements in Egypt, Europe and the United States. “We cannot afford to sit back in splendid ...1 week ago
- NZ welcomes Australian Governor-GeneralPrime Minister Christopher Luxon has announced the Australian Governor-General, His Excellency General The Honourable David Hurley and his wife Her Excellency Mrs Linda Hurley, will make a State visit to New Zealand from Tuesday 16 April to Thursday 18 April. The visit reciprocates the State visit of former Governor-General Dame Patsy Reddy ...1 week ago
- Pseudoephedrine back on shelves for WinterAssociate Health Minister David Seymour has announced that Medsafe has approved 11 cold and flu medicines containing pseudoephedrine. Pharmaceutical suppliers have indicated they may be able to supply the first products in June. “This is much earlier than the original expectation of medicines being available by 2025. The Government recognised ...1 week ago
- NZ and the US: an ever closer partnershipNew Zealand and the United States have recommitted to their strategic partnership in Washington DC today, pledging to work ever more closely together in support of shared values and interests, Foreign Minister Winston Peters says. “The strategic environment that New Zealand and the United States face is considerably more ...1 week ago
- Joint US and NZ declarationApril 11, 2024 Joint Declaration by United States Secretary of State the Honorable Antony J. Blinken and New Zealand Minister of Foreign Affairs the Right Honourable Winston Peters We met today in Washington, D.C. to recommit to the historic partnership between our two countries and the principles that underpin it—rule ...1 week ago
- Restoring coastal habitat boosts wildlife numbers by 61% – but puzzling failures mean we can still...
Source: The Conversation (Au and NZ) – By Michael Sievers, Research Fellow, Global Wetlands Project, Australia Rivers Institute, Griffith University Chris Brown Humans love the coast. But we love it to death, so much so we’ve destroyed valuable coastal habitat – in the case of some types of habitat, ...17 mins ago - Public sector job cuts: Affected staff criticise leaders' handling of announcements
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Labour is going to build a large number of $500K-$600K first homes.
If your household income is around $90,000 to $120,000 p.a. thanks to Labour you should be able to afford one of these.
What’s your view CV ? A pointless exercise, would result in no overall improvement ?
Its a policy which will greatly help the top quintile by earnings.
If you are a median full time employed wage earner on $55K it doesnt help you. Unless your partner also earns similarly. If you are single or your partner doesnt work: sorry.
Strict rules will have to be put in place to prevent these properties being flipped on a few years down the track. Perhaps they can only be sold back to the government. This will suppress the prices of these houses long term.
I think Andrew is going to shift the 2 year clause out to 5 years for the penalty to kick in.
Edit “It will also extend the ‘bright line test’ from two years to five years so investment properties on-sold within five years have to pay a tax on the capital gains achieved.”
Face it – we are all hissing into the wind unless the average house price drops enough to suit the average wage-earner, or the average wage rises enough to enable buying a house.
Surely we all know that neither will come to pass.
So what you are actually trying to do is to help those who are currently not quite rich enough. But this still limits the help to the rich.
That does not inspire me. (I started very late – could have bought in 1970 with 3% State Advances loan, but did not. Bought a $49,000 house in 1982. It is now worth nearly 10 times that. Unearned and bloody ridiculous. Nobody should be able to make unearned profit.)
The bubble needs somehow a big deflation rather than a burst.
Sorry – none of this inspires me much. The system needs fundamental correction, not just another superficial temporary massage.
It would be a step in the right direction if the average dual income family could afford a home in the Auckland market. Which sucks especially hard for single parents. But this is where things are at.
+100 In Vino
Considering homes in that range are only 4% of the Auckland market at the moment, it’s not bad.
But I think Labour should not have ceded the Urban Growth Boundary argument to the glee of land bankers. There’s plenty of space within Auckland without more endless sprawl required, ffs Auckland is already ridiculously spread out. The problem isn’t the urban limits its a building industry that can’t keep up (and is rorting the situation). The biggest single cost of a house in Auckland is the construction, not the land
http://www.beaconpathway.co.nz/new-homes/article/cost_tower
” Considering homes in that range are only 4% of the Auckland market at the moment, it’s not bad.”
Yes this Labour policy targets households earning around $100K pa which were finding themselves priced out of the market.
True, but perhaps the social housing end of the market is better managed by HNZ than the proposed “Affordable Housing Authority”? Need to hear more on this from Lab/Green
nothing wrong with putting price pressure on the market with housing aimed at that demographic PROVIDED the social housing and rental market is also addressed (i.e. emergency and state rentals)……assistance to buy first homes is nothing new and this is simply a variation on that theme……removing some of the ticket clippers, hopefully.
OK, so the Kiwi dream of house ownership is for those in the $100K earnings bracket.
the dream remains…..home ownership has never been 100% (it peaked at a shade under 74% in 1991) even in the heady days of state housing builds….thats why state house rentals were built.
Do you read the policy- ever-?
half the houses are for Auckland, the rest for other cities in NZ.
median household income in Auckland is $76k(2013) already ( highest in NZ, so is probably over $80k now)). so the $100k figure is just made up by you.
You normally have these sort of things sorted , so Im surprised you have slipped up here.
Using a house price to income ratio of 5 as the limit of affordability, a $500,000 house in this scheme requires $100K pa household income.
Also by the time the first house in Labours scheme is finished in 2019 it’ll probably be up to $700,000 given 10% annual price increases.
Those are retail prices, which include hefty profit factor.
TDTI ( total debt to income ratio) can go as high as 6-7.
Labours scheme has apartments as well as houses , so they will be young couples who can afford an apartment in Auckland , or a house in Hamilton
http://www.rbnz.govt.nz/financial-stability/financial-stability-report/fsr2015-11/debt-to-income-ratios-of-new-zealand-borrowers
That’s dreaming.
Ask a working couple earning $80,000 per year total what they think of having $500,000 worth of mortgage debt requiring $21,000 pa interest alone.
If interest rates bumped up to 6% for any reason that would be $30,000 pa interest charges to be serviced out of a $80K pa gross income.
If a number of people in the $100k plus wage bracket can afford to buy new houses. this will free up rentals which while not perfect is a step in the right direction.
Yeah that was my thought add well. Expanding the boundaries only plays into the hands of the land bankers.
Actually, the biggest cost of building is the materials. That’s the problem of having a duopoly and most of the raw materials are sent off shore for the benefit of the owners rather than having them used here for the benefit of New Zealand.
With materials it’s also a function of scale, virtually all the houses built in New Zealand are one offs. Our Housing Trust in Queenstown is doing good things by getting the scale up into the 10s. I would hope a Crown building programme would get this up by a couple orders of magnitude. Get standard designs that you are building 1000s of and costs come down with a wallop.
CV you are such a cherry picking negative wanker. I am so sick of you trolling this site. No doubt you will spend the rest of day with dozens of negative nitpicking comments. So to balance out all your negativity.
Little said terrace housing would be under $500K -only the stand alone housing would be $500 to $600K. These house prices are a massive improvement on the $1 million average that the market currently offers and would be a huge step towards affordability.
Anyone can criticise the good for not being the perfect. But in the real world perfect doesn’t exist and moving towards the good is the better policy.
I think Andrew Little and Labour did well today -they were brave and pragmatic. It was an excellent birthday celebration.
A $400K terrace house, using a house price to income affordability ratio of 5 (which is already generally considered “highly unaffordable”) would require an income level of $80K p.a.
No one is denying that this is better than the current situation. But lets be clear who is helped by housing at these price levels, and who is not.
That is why we needed state housing reform package announced earlier this week and why we need to move on improving renting conditions and security of tenure rights. It is all part of a broad package that overall will massively improve housing conditions for kiwis.
P.S $80,000 is about the median household income, so a $400,000 terrace house would help the median income earning family.
@Brendan Harre (1.3)
+1
According to Trademe Property there are currently 775 homes for sale in the Auckland market at your “affordable” price, that is a huge number to choose from, how much more choice do you want?
http://www.trademe.co.nz/Browse/CategoryAttributeSearchResults.aspx?sort_order=expiry_desc&search=1&cid=5748&sidebar=1&132=PROPERTY&134=1&135=&216=0%2C0&217=0%2C0&153=&29=Apartment%2CHouse%2CLifestyle+dwelling%2CTownhouse%2CUnit&122=0%2C0&123=0%2C0&49=300000%2C550000&178=0%2C0&sidebarSearch_keypresses=0&sidebarSearch_suggested=0
Those are CV’s (council valuations not the other CV), the sale prices tend to be double that. Also there’s a crapload of apartments, 1 brm units, and places for auction on your list. Auctions tend to go miles over any sensible value at the moment.
Hmmm, well it’s not my list, it’s Trademe’s, and they are not CV’s, they are the asking prices, but say we reduce the list to 3 and 4 bedroom homes; there’s still a choice of a mere 256 places for sale in that range in the Auckland area, is that not enough?
http://www.trademe.co.nz/Browse/CategoryAttributeSearchResults.aspx?sort_order=price_desc&search=1&cid=5748&sidebar=1&132=PROPERTY&134=1&135=&216=0%2C0&217=0%2C0&153=&29=Apartment%2CHouse%2CLifestyle+dwelling%2CTownhouse%2CUnit&122=3%2C4&123=0%2C0&49=300000%2C550000&178=0%2C0&sidebarSearch_keypresses=0&sidebarSearch_suggested=0
Why not have a look at this one?
75J Hill Street, Onehunga
Location: 75I/(J) Hill Street
Onehunga, Auckland City
Rooms: 4 bedrooms, 2 bathrooms
Property type: House
Price: Asking price $320,000
Parking: 2 Car Garage
Modern townhouse nicely spread over three levels, complimented by four large bedrooms, and a generous living area, that joins onto the outside courtyard.
http://www.trademe.co.nz/property/residential-property-for-sale/auction-710644853.htm
Yeah nay. It is a leasehold property you muppet.
So what, muppet?
[Focus on ideas, not personalities, please. TRP]
“Presently tenanted by Housing New Zealand until 22nd May 2018. This property is also Leasehold. “
So, what’s your point?
you do know what a leasehold property is?
Yeah, I’ve got some idea. Large areas of Karori and Newlands, here in Wellington, are leasehold sections, owned by Manchester Unity and other trusts. My in-laws house on Wrights Hill, Karori was a leasehold section, they didn’t die under pressure of payments. It’s a viable option for first-home buyers especially and is a sensible option for Labour to explore, but…hey, if you don’t like it, there are still another 255 properties to look at…go for your life.
think I’ll pass thanks….like most folk I think leasehold properties are to be avoided like the plague…..theres good reasons why banks are far more restrictive on their lending for them.
That’s a leasehold property so you’re paying a hefty ground rental separately to buying the house. And you’re totally helpless when it comes to rent review time, it could go up to anything.
https://www.kensingtonswan.com/Legal-Updates-And-Events/Property/2014/Leasehold-properties-beware-the-rent-review.aspx
Fair enough, but in what way is it not affordable?
You are not “totally helpless” when it comes to rent review time, you have options including selling the property, using your (hoped for) capital gains or property improvements to take another small step up the ladder, that’s the way the vast majority of people gain value; hard work and small increments. It’s worthwhile, I assure you.
unless you know the details on the lease and the term to run you have no way of knowing its affordability or value, so as an example it is pointless
Well then Pat, drop that property off your list, there are still 255 others to look at, and time waits for nobody…
In the law firm paper I linked, the ground rent went from $8300pa to $73750 pa, so the owner abandoned the property and lost everything she had paid for it.
In the Onehunga property you linked to, the ground rental on a neighbouring property (looks exactly the same) in the same block is a bit over $14k pa, plus body corp fees plus etc. That’s on top of $340k for the house. That doesn’t look affordable to me. Then you’ve got the risk of having to walk away from it all if the rent review does what the Cornwall Park Trust ground rents did.
I appreciate what you’re saying Andre, that there are horror stories, and I accept that, but there are also numerous good stories, yours could be one yet to be told. Don’t be afraid of a lease-hold section…check out your landlords by all means, and if they are bastards, well then they are bastards and stay away from them, but don’t be afraid of the concept, it could be the best thing you ever did.
good grief, you sound like a realtor…are you on commission?
Not so far Pat, but I’m open to offers.
Seriously though, Labour should be considering this. Forget Kiwibuild and think Kiwisite.
Government should not be involved in house-building in a big way, not with all the legal requirements and related whoo-har of end-product value or usage, lack of productivity, poor quality, or the shortfalls implicit in complaints associated with people’s aspirations, but instead home in on an on-going, long-term, cash return based on viability and affordability of sections alone, this is a concept most Kiwis would be comfortable with, it would be a far better focus, and could be accommodated under the NZ Superannuation Fund and ACC Funds terms of business without compromising earnings potential.
KIwi site is a great idea, free up and develop the land and then get out of the way.
Unfortunately socialists are control freaks and can’t cope if they aren’t controlling the whole process.
“Government should not be involved in house-building in a big way, not with all the legal requirements and related whoo-har of end-product value or usage, lack of productivity, poor quality, or the shortfalls implicit in complaints associated with people’s aspirations, but instead home in on an on-going, long-term, cash return based on viability and affordability of sections alone, this is a concept most Kiwis would be comfortable with, it would be a far better focus, and could be accommodated under the NZ Superannuation Fund and ACC Funds terms of business without compromising earnings potential.”
one more time….in english if you would be so kind.
Yep, ok Pat, fair point.
Let me try again;
Labour should not pretend to be house-builders, they should concentrate on supplying developed sections which could then be leased back to lessees based on the capital value of the building above the ground (already reliably and timely assessed and re-assessed by QVNZ or local councils, so there is no extra level of cost).
Disappointments related to mortgage restrictions made by banks on houses built on leasehold sections, due to the perceived volativity in ground rents, would disappear, or largely disappear, if backed by HNZ long-term leases.
The capital cost of home-building could be halved, at least in Auckland’s case, and in this way every tradesman or teacher, Jack or Jill or in-between, could aspire to an affordable home and the security that offers, and taxpayers would receive a return on thier investment, forever.
I don’t see negatives, compared to the alternatives.
so idbkiwi you reckon the govt should
a) develop new subdivisions & associated infrastructure
b) offer the developed land to the open market on 100 year leases or something
c) jack up the lease price if someone actually puts a house on top?
That isn’t going to encourage development much
IMO a land value tax will work better. It’s similar to rates, but the difference is the same tax applies whether you have developed the land or not. Effectively this discourages land banking & encourages greater housing density.
OK…
“Labour should not pretend to be house-builders,”
No they should not pretend, but they can (and have in the past) been that and the private sector have made a pigs ear of the construction industry these past few decades so on that I disagree.
As to government owned leasehold land on say 99 year lease that i have no real issue with and it may well offer some of the cost benefits to which you refer, though I would suggest the public would prefer freehold and act accordingly and the leases would have to be watertight to prevent future government modification.
“256 places for sale in that range in the Auckland area, is that not enough?”
hmmm and HOW may people do we have arriving to live in Auckland each day ?
you “256 places ” is maybe a 1-2 week supply @ best ?
pathetic…
Christ CV at least read the speech before sniping at it. The policy includes apartments which will be significantly cheaper.
Labour’s announcement definitely helps people who are in the top quartile income bracket own their own home, no mistake about it.
At 5x your earnings, houses are generally regarded as highly unaffordable.
Going lower end, $400K terrace houses or apartments will work for those households earning $80K or more.
For a couple both working full time minimum wage ~$65K pa total income they will likely have to stay renting long term.
Labour’s plan can be built on. Coalition partners will have good ideas too. So howz John Key’s brighter future doing for everyone Colonial Viper? Sounds like you rather retain the Nats current outrageous mess, rather than give Labour a fair go.
No more 1/4 way measures.
That’s just the way you think. Sad really.
@ Colonial Viper 10 July 2016 at 6:54 pm:
You seem to be displaying shades of absolutistic, dichotomous thinking, i.e. black & white, all or nothing, etc.
Potential solutions are judged on achieving 100% cure, success, or whatever; anything less is considered short of the mark and thus utterly and completely (!) futile.
This seems to fit with your apparent contempt for NZ Labour, for example, which you have supported in the past I believe.
The only reason why I raise this – and I might well be very wrong – is that your negativity is starting to grate and is becoming a distraction, at least for me, and I find it increasingly difficult to separate the wheat from the chaff in your comments. So, essentially, this comment is about me more than anything …
How stupid of me thinking that building lots of houses would help the lack of housing crisis.
FFS CV improve the quality of your comments. Please.
MS, just pointing out that building $400K, $500K and $600K houses destined for first home owners is going to help a very select group of aspiring first home owners.
Those with household incomes in the $80K to $120K range.
(And I’m being generous here – by the time Labour can implement this policy, both land costs and build costs will have increased another 20%)
For other Kiwis who aren’t lucky enough to be that well off…the “Kiwi dream of home ownership” apparently ain’t for you.
And who exactly are Labour helping to become first home owners? Those people who sit in the top half of household incomes.
Well that do good for these people? Of course it will. Never denied it.
This is also the demographic you can count on to swing vote for their own best interests.
Which workers will be lucky, not these ones:
http://www.stuff.co.nz/national/81788403/the-struggle-to-balance-budgets-for-todays-working-poor
There are cheaper town houses and apartments too. Honestly, read the policy dude.
CV, most poor people do not have a income anywhere near the $90,000-$12,000,00 that you say is required.
This so called radical policy from Labour is fucking humbug and will do nothing for the poor people of NZ except make them more poor to the rest of the population.
Rip off politics from Andrew Little and the Labour party.
Fellow NZs wake up to these self serving bastards.
It’s good for the middle class voters (and their kids) who are being priced out of the Auckland housing market.
What’s the advantage in me buying a house off Kiwi Build instead of getting some one like G.J. Gardner to build it for me directly?
Also when did it become, your first home has to be a brand new home?
Supposedly a KB house will be cheaper? Economies of scale, supply chain optimisation, lower markup and what not
I’m assuming G.J. Gardner, Jennians and all the other housing companies will be building these houses.
If you add the the cost of running Kiwibuild into the mix I can’t see how it’s going to be cheaper unless this who thing is going to be tax payer subsidised.
I’ll be honest I wouldn’t be too impressed if my tax dollars were going toward people buying a flash brand new house.
if the houses go to auction, prices would indeed be bid up to current silly numbers, presumably these houses would be sold by some form of rationing
these houses would be sold by some form of rationing
Yeah and I’ll bet all the labour/green party members will “some how” end up at the front of the queue.
That’ s so typical of the left.
I am with you on most of this, Working for Families is just as obviously a subsidy to middle NZ and to minimum wage employers. In order to be truly affordable these homes need to be around 250k and really basic. That would help a lot more people than 500k houses for young professional labour voters.
iam picking homes built on such a scale will move from the site to the factory as they do in Europe ,production automation would take care of any changes people wanted . working hours per house would plummet also you wouldn’t need skilled labour , skilled labour would only be necessary in siting the home.
https://youtu.be/1X-9W0P-8Tc
automation is coming and kiwi build is perfect scale for its use
https://youtu.be/fpD5H1EH0go
From the detail released so far:
– You need to be a first home buyer
– You buy directly from the Govt (department)
– The house will be encumbered by the Govt that you can’t on sell for x number of years.
Maybe if demand exceeds supply some kind of raffle / lottery for the lucky family??
You can sell it, but any profit above the initial sale price (and presumably cost of sale) in those X years will go back to the government.
“I’ll be honest I wouldn’t be too impressed if my tax dollars were going toward”
to be fair mate i cant imagine your happy about paying any tax AT ALL…
lol
based on your assumptions you can’t see it, and you wouldn’t be impressed by another of your assumptions.
Come on, BM, you can spin better than that if it’s actually a bad policy.
Because this is a $500-600k house AND land, in Auckland.
Go try and build a house for that price in Auckland now, including land, with G.J. Gardner and see how you get on.
There will be 50,000 of these houses, rather than the 400 or 500 that GJ Gardner might be able to supply, on the very fringes of the city.
So the saving will be in the land price?, because G.J. Gardner isn’t going to build it for nothing.
A part of the saving will be in the land price, the other part will be from the economies of scale and new methods (see the mention of prefabrication), and another part will be a saving in consenting and standard overhead costs.
So it would be something like this?.
The government will grab land using the public works act, then develop the land for housing using some one like fulton hogan and then hire housing companies to build on the new sections.?
The public will then buy the houses off the government at a greatly reduced price because the government is doing everything at cost.?
If this is indeed the case you’d be mad to buy a house from anyone but KiwiBuild.
That seems to be the plan.
Bearing in mind, that if you sell it within 5 years, all profit above the initial purchase price goes back to the government.
What do you think that will do to house prices?
No idea.
You don’t think it may put down ward pressure on house prices.
Lets be honest no private firm will be able to get near the prices of what the government could build a house for.
It’s a bit of a no brainer why pay 800k when you can get the same thing for 600k
Going to be tough for a lot of developers or housing companies that do house and land packages because everyone will want to get a house via Kiwi Build.
It’s not the same thing. For starters, if you re-sell your $600k house within 5 years, you don’t get to keep any of the profit.
I’m sure they’ll have rules about owner-occupiers only. They may have other rules too, about who qualifies to buy a house, and how the houses are dished out, like a lottery.
So these houses simply won’t be on the same level as the others.
But yes, the point of this policy is to take heat out of the market. If a bunch of supply becomes available that meets a large part of the demand (houses for owner-occupiers to buy and live in), then it means the rest of the housing stock will have less aggregate demand, easing house price pressure.
“You don’t think it may put down ward pressure on house prices.”
isn’t that the point in an unaffordable housing market?
But yes, the point of this policy is to take heat out of the market. If a bunch of supply becomes available that meets a large part of the demand (houses for owner-occupiers to buy and live in), then it means the rest of the housing stock will have less aggregate demand, easing house price pressure.
There’ll be a lot of unhappy monkeys, who’ll all blame Labor.
Can’t see them voting left in 2017..
Be like a Turkey voting for Christmas.
“There’ll be a lot of unhappy monkeys, who’ll all blame Labor.
Can’t see them voting left in 2017..
Be like a Turkey voting for Christmas.”
well there may be some upset turkeys but I suspect you overestimate their number….I would suggest most property owners will be reasonably happy to see the bubble deflated somewhat….especially when the alternative is a wholesale crash.
tough
Oh noes, property developers will all be homeless in the future! No, wait, we could always build some houses for them…
@ BM 10 July 2016 at 5:21 pm:
Who are those “mon-keys” and what exactly will they blame Labour for?
Do you really think that your imaginary doomsday scenario will eventuate, i.e. that house prices will go down?
IMO the more likely scenario is that the absurd rises in house prices will come down somewhat but they will still rise.
Another likely scenario, according to many experts, so don’t take my word for it, is that if we stay on the current course, i.e. do nothing and hope for the best as National seems to be doing, we’re in for a major ‘correction’ AKA an uncontrolled and uncontrollable collapse of the market.
My guess is that you, and some other commenters here on TS, will opt for the second scenario without giving it a second thought! I believe there is a name for that: cognitive distortion. (NB don’t look this up; it’s depressing reading)
Those greedy monkeys cannot keep expecting free money as a birthright simply because Mummy and Daddy gave them a house deposit and wealthy foreigners want to launder dirty money.
I’d presume the KB homes would also be to standard plans with basically no options. Think Neil or Keith Hay from late 70’s, which were a response to a similar situation in early 70’s, but in current vernacular. So basic designs, really standard componentry, but with the government taking the spec risk, not the builder. If you want something better, then go direct to the builders.
and even then you can do all the internal fripperies yourself, like different kitchen bench etc, if bogstandard (or the standard bogs) isn’t good enough for you.
Pleasing to see that Labour will extend National’s 2 year CGT out to 5 years, ought to be longer. Some policies that should make a real difference.
Would have liked to see some policies with real teeth like a LVT and FTT. Disappointing that AL spoke positively of property “investors” as opposed to “speculators”; in my book they are the same. I consider the NZ cult of landlordism to be immoral, all rentals should be non profit (and all banking for that matter).
Should also ban *all* offshore buyers, allowing foreign “investors” to build & buy still takes builders & land out of the domestic market.
I suspect that the size of this category will be small and not put a significant demand on and compete for resources.
To treat the market as one amorphous whole in which state housing is lumped with upper-market housing is losing sight of important detail & differences IMO and not conducive to good policy setting.
Similarly, to treat investors and speculators the exact same way is overlooking important differences. Labour is careful not to spook the business sector and private investors as you can tell from AL’s speech.
One might argue that Labour is using market tools to try and deal with social issues that cannot be fixed by the market alone (obviously) or arguably have been created/increased by market forces. Only a dogmatic purist would vehemently object IMO.
The devil will be in the details.
100,000 new affordable houses over 10 years, add in another 1,000+ new state houses per year that = 11,000+ new house’s per year. On top of that we already build about 8,000 new houses in Auckland per year. Easy for Andrew Little to promise this in the safety of opposition, another to deliver.
The affordable homes ($550 – $600k!) will not be able to be on-sold, Little has already pointed this out. Interesting to see just how long they are encumbered for…what happens if a family circumstance changes? are they locked in for 10 years?. Will lenders lend on standard terms if the price is suppressed? think mortgagee sales or a down turn in the property market.
Only for first home buyers? what about the Smith family (example) who owned a house somewhere other than Auckland. They move to Auckland for work, all they can afford is $600k to buy…they are still out in the cold under Labour.
At the moment its sound bites for the faithful…the public will be waiting for the details and ability / chance that Labour can deliver on its promise’s.
You can’t do it, that’s true. That’s because you’re a delusional fuckwit, in a team of delusional fuckwits, whose sole purpose is naked self-interest.
You worship market forces, and yet you’ve failed to notice the most powerful market force of all.
You can’t do it. Get out of the way before you get hurt.
When you resort to name calling OAB, basically it means you have nothing…its school 101 type of thing.
I do hold out hope that at some stage in the future, you can be a productive member of society… I will not give up on you buddy!
Oh, indeed, the labels I apply to you are irrelevant.
The market force you’ve failed to notice is the substantive part of my contempt for your opinions.
As for your insulting reference to your hallucinations about my life, oh noes, it’s exactly like my labels only longer, you vermiculous trash.
You are making good progress OAB…let it all out, I am here for you mate.
Stop projecting, Wormtongue.
I have faith in old OAB as well, we are all here for him, possibly and exorcism may help with his anger, a few demons lie within I suspect.
When ya don’t have enough affordable houses you bloody well build some more!
Labour, been doing it since ages ago!
YES, SPOT ON !!!!
Good policy, nice speech-writing. Well done, Labour.
Agreed Sacha.
All this focus on Auckland housing. Hope we can also get thousands of affordable homes in other parts of the country. Say $210K to $250K in price.
$400K to $600K housing options still aren’t affordable to the vast bulk of working people.
Andrew Little did say it’s not just Auckland, regions around the country too.
Yet it’s still a lot cheaper than the current cost. Labour have outlined a plan that can be built on, to assist Kiwis into a home, what is wrong in that? Far better than the no future the key National government is offering.
I agree, Labour’s plan helps a lot more people, if your household is in the ~$80K to $120K income bracket Labour will help get you into the ‘Kiwi dream’ of your own home.
Anyone in that income bracket in Auckland who is not yet a home owner should certainly swing their vote to Labour.
Just because it’s not written in neon lights for you Colonial Viper, Labour have not forgotten those in lower income brackets. What we have seen in the announcements is the direction Labour is heading, it’s a beginning for change that will be built on. We should be welcoming that. At least Labour is offering Kiwis a future, we don’t have that with John key and his Nats.
“All this focus on Auckland housing.”
Tiresome. Get over yourself. This is where 60% of the population growth is projected over the next few decades – two thirds of it from internal births, not migration. Auckland is where the problem bites hardest. It is where the solution is needed most. Nothing you or I say will change that.
Labour’s housing plan ad
<a href="https://nz.news.yahoo.com/top-stories/a/32024143/labour-outlines-plan-for-more-homes/#page1
Nice, I hope Labour puts this on Bill Boards next year.
I hope so too.
Good speech.
Labour really need to look at the tiny house movement. If you are on a minimum wage job then you need something under 300,000 not 500,000-600,000. The only way to achieve that is to build smaller. Currently only apartments are built smaller but are often not suitable for families and often have high body corporates so cost more.
In other countries they have allowed tiny houses to be built with free permits to save costs and within a single story be able to be sited on existing sites with existing infrastructure. At present the proposed unitary plan increased height zoning is a joke, with the council approving many properties in violation of the district plan guide lines which are not affordable and over size – they are actually driving people on Kiwi incomes out of districts, as by the time a property becomes a 3 story mansion it becomes unaffordable on local wages, and are often totally unsustainable in most respects. One of the reasons that Auckland house prices are escalating is that houses are being doubled or tripled in size and therefore are going to cost a lot more. The idea of increased height to boundary seems to be to drive terraced housing but it is not working at all, instead larger mansion are being built that are creating inner city mansion districts away from the traditional bungalows priced much more affordably.
A few years ago you could buy a studio apartment in Auckland for $200,000 now it is close to impossible. One of the reason’s first home buyers could not buy them was that the bank would not lend unless you had a 30% deposit.
The other issue is the proposed capital gains road tax, that clearly will discriminate for the cheaper further out areas of housing. It is clearly not going to work to build houses in the greenfield areas like Drury, Whenuapai, and Kumeu if people have to pay $30 – $100 in road charges per person per week and then have to pay petrol on top of that. BTW, just a section in Kumeu is over $400,000 so you would be looking further out like Helensville and then you need to look at high speed rail to link and place to park for park and ride.
The other big issue is migration, if migrants who have settled here at a rate of 60,000 overseas students living here and trying to gain residency and 60,000 new migrants then it is a waste of time trying to build the houses, Labour will not be able to keep up with that level of change in the population. Migration is the biggest factor inflaming the housing. Once that falls, then investors will stop being in the market as it will flatline the prices and there will be no profit to be made.
One man’s Tiny House is another man’s caravan park.
Save me from Kirsten Dirksen.
Make the rule no renting. If you take the tiny house route you sack the landlord forever.
Tiny houses are for hair shirters.
What are “hair shirters”?
+100 save nz…”Migration is the biggest factor inflaming the housing”…and overseas ownership…and we still don’t have the stats on this
actually I am not that impressed with Labour’s housing policy…too Little to late…and building a few more houses for those on a relatively good income won’t affect the crisis in housing much imo until the underlying core of the problem is addressed
…and state houses should not be sold off …they should be repaired and renovated…as well as many many new ones built for New Zealanders
Well, according to some we may have to wait till 2020 (GR2020?) before this policy may be implemented.
They may not get what they wish for Incognito. They don’t seem to be on the side of average Kiwis do they?
Indeed!
I really don’t know what’s behind their (wishful?) thinking and what purpose it serves, if any, for the good of all.
I have very few answers and many questions and admittedly sometimes feel a little overwhelmed by it all …
Same here.
“…and state houses should not be sold off …they should be repaired and renovated…as well as many many new ones built for New Zealanders”
That’s what Labour is proposing.
“and building a few more houses for those on a relatively good income won’t affect the crisis in housing much imo until the underlying core of the problem is addressed”
But it’s not just a few houses though, it’s 100,000 and that will go a long way in resolving the crisis. It’s a start isn’t it? Or would you rather stick with John key and the dismal, bleak status quo?
“actually I am not that impressed with Labour’s housing policy…too Little to late…”
That’s a surprise, NOT!! Sour grapes? Little’s big bold plans are timely, and they are what is really needed right now.
Watched Newshub on Little’s housing speech. Paddy E Neuman trying to claim that Labour’s election future will sink or swim solely on this one policy issue.Does he really think Labour is a one policy party? Watch this space for more Paddy.
And didn’t you love Mr Joyce’s frenetic spin/sneer response to Andrew Little’s housing policy announcement. Apparently it’s called ‘post truth politics.’…Donald would be proud of you Stephen..
Lol they know they are on the back foot.
I think its more that Nationals biggest weakness is housing affordability so if Labour don’t get any traction with this then it’s all over until 2020
Kindly correct me if I am wrong.
“The next Labour Government will build 100,000 new affordable homes to be on sold to first home buyers.
Working with the private sector and experts in fields like prefabrication, we can build standalone homes for $500,000-$600,000 in Auckland, with apartments and town houses for less than $500,000”
Andrew Little claims that he will use $2,000,000,000 to build 100,000 houses.
Do the arithmetic . Does anyone seriously believe you can buy a section and build a house for $20,000? of course not.
He acknowledges the minimum cost would be $500,000. That equates to just 4,000 houses.
Dude, the $2B is only needed to build the first few houses with.
The government then sells those completed houses into the market to raise the next tranche of funding required to complete another phase of houses.
It is not necessary or desirable to have all the cash available up front for 100,000 houses lol. You only need to be able to fund the first part of the first phase of the project then start selling units off the plans to get more $$$ rolling in.
Wasnt there a rent to own policy for state houses, or was just that a policy suggestion,
But that’s just a copy of what is already happening. What a damp squib. I actually thought he was going to announce something radical.
Nothing is what is happening Fisiani, that’s why Labour have come up with an achievable, practical, comprehensive plan to put Kiwis into homes. Labour have done it before, and will do it again. Who said anything about it having to be radical?
A fair point barring that the policy encompasses once the houses are sold the funds will used to payback the tax payer loan, only leaving profit for reinvestment, which i suggest based on making housing affordable this will be very little
Okay, so when National put up $1Bn for councils to move forward infrastructure programs there were howls that this would only allow 500 houses to be brought forward. Based on this logic, $2Bn would cover 1,000 houses.
Let’s say 6 months for council consents / land development (generous), 6 months to build (again, generous) and buyers are already lining up so no downtime on purchase, the means $2Bn would build around 1,000 homes / year, 10,000 over 10 years.
So now I ask, where are the other 90,000 homes coming from???
It’s all too difficult for right wingers to comprehend. That’s why you make shit governments.
Ah, now I understand where they are coming from, thank you for once again enlightening the world with your pure intellect. Great contribution as always OAB.
That’s rich coming from someone whose sole contribution is “it’s too ambitious, let’s do nothing”.
If you can’t figure out how a government can build more houses than the one you support, well, that probably explains your support for such a pack of incompetent buck-passing dimbulbs.
Bullshit OAB, my contribution was suggesting raising the minimum wage significantly to increase inflation, allowing the Reserve Bank to increase interest rates: http://thestandard.org.nz/open-mike-26052016/#comment-1179200
This has already been singled out as the ‘biggest risk’ to Australian house prices: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11672222
Of course my ‘right wing’ ideas are obviously too hard for you to comprehend.
What was your contribution again OAB? Oh that’s right:
“Oh noes, property developers will all be homeless in the future! No, wait, we could always build some houses for them…”
“That’s because you’re a delusional fuckwit, in a team of delusional fuckwits, whose sole purpose is naked self-interest”
“Stop projecting, Wormtongue.”
“If you can’t figure out how a government can build more houses than the one you support, well, that probably explains your support for such a pack of incompetent buck-passing dimbulbs.”
Such enlightening commentary.
You’ve proposed a lot of “market” tinkering, in other words, that won’t see a single homeless family housed, and when it doesn’t, you’ll act all surprised and come up with some more market tinkering that won’t get a single extra house built either.
Brighter future, remember: the party of no plan and no ideas needs to get out of the way.
Private developers in Auckland are building low end houses in 8 weeks now. Everything is timed to the day, ie deliveries to the time of day, subbies to be there on a certain day as well. The costs are lowered by not having large areas of sliding doors and more insulation to do away with need for double glazing.
Existing consent rules allow standard house designs to be pre approved, so if you have 10 designs, once one is consented doesnt need individual consent again.
For far loo long NZ has built over individual designs , which is Ok for people who want this or that but it makes the houses un affordable in the process.
Who really needs over 75 different aluminium window colours to choose from, and every window is unique dimensions. Lets have 12 window sizes and 12 different colours and save maoney
Can you give me an example of such a development?
I was under the impression that developers far prefer to build higher margin homes, minimum $800K selling price.
Also, some of the houses will be built outside Auckland…
Very cool that Andrew Little acknowledged David Cunliffe and gave him a special mention. I liked that a lot.
Labour should be promising millions to places like this who cater for those most in need of housing and shelter…I know this is what Mana/Internet ( a real Left Party) would do if it was in power
http://www.radionz.co.nz/national/programmes/morningreport/audio/201807765/several-whare-closed-at-deathtrap-marae
“A Wellington urban marae built by homeless youth, ex-cons, and gang members is struggling financially after the closure of several of its buildings by the Wellington City Council. The Council says it’s a death trap. Our reporter Daniela Maoate-Cox visited the marae to find out more.”
( This Marae 20+ years ago provided free of charge large native trees for me to plant in our local council owned rough wilderness reserve above Wellington city…Bruce Stewart and whanau have hearts of gold and are real environmentalists and Greenies
…and why is Wellington Council NOT helping them?!…bring them up to standard instead of closing them!!!….utterly heartless and disgraceful!)
…instead of tearing down ‘substandard’ state houses and selling them off to privatising speculators…they should be renovated by unemployed NZ youth who could be taught carpentry and other skills under supervision…this is what a real Labour Government of Micky Savage would do
…Labour should be attacking jonkey nactional on selling off existing housing stock
Looks like Andrew Little’s Labour is a real Labour led Government in waiting, that you are calling for Chooky. Didn’t you read the speech etc?
OK….Lets check the numbers.
$2,000,000,000
$500,000 per house
4000 houses
to meet the target 3334 houses built every 4 month
ie land found, bought, consented, infra structure built and all house constructed finished and sold….in 4 months.
So they can do it all over again, every 4 months for 10 years….really?
Questions:
Where is the initial money coming from?
Where are the builders, electricians, plumbers, painters etc coming from?
Have you told the workers, to keep the price at $500 000, they can’t have a pay rise for 10 years?
So inflation will be ZERO under your plan, for 10 years?
On the money that you will HAVE to borrow initially to fund it, you expect to pay ZERO interest?
Apart from compulsory purchase of PRIVATE land, there will be no price increases of land due to the artificial demand created by the govt.?
Should there be compulsory purchase, you will need to change the law to create the ability for the Govt. to compulsory purchase land. Which was, in my understanding, used for war time purchases to create things like army bases and airstrips.
This new ministry will cost no more to run than the current system (yeah right)?
etc etc
Yep your right John
How will the Natz manage it?
The Natz won’t of course but what they will do is pick massive holes in this plan and try to turn it into just another “game-changer” of Labour
The Gnats have entered their ‘dying swan’ phase – they’re all dying to swan off to Indonesia or Europe like John and stop even pretending to give a shit about New Zealand.
I’d have thought that Labour would have realised that, based of the previous 8 years, that any plan they come up with will be picked apart by National
Again I agree PR. !!!!
NATZ are good at negative BUT not so good a planning themselves.
Heres the thing though, at the moment the only real concern for National is housing affordability, there not really any other issue that could potentially lose the election for National
So what Labour should be doing with housing is making sure that whatever plan they come up with measures up, its not to work out what National will do
Work out what National will say about the plan and then come up with a (credible) answer to Nationals objections
Already doing it!!!
40 houses per day need nearer 50 that is why this number is increasing.
14,600 per year
Need 16000
No need to change the law; we have the Public Works Act which allows govt and councils to buy any land they need.
Only for specific purposes, which don’t include generic housing.
Nope. Read the act. Govt’s power is almost limitless. Any land for any reason they see fit
In that case, I hope it’s your place.
Maybe then you’d see it as draconian over reach of Govt.
In that case I also don’t want National to do it either.
Buy the land from owners at Market rate, IF they will sell it to you.
land is taken all the time when people dont want to sell. Most of Nationals expensive highways would have had land acquired compulsorily or under the threat of compulsion.
I’m not justifying it just educating you on its existence.
It’s unlikely amy of us will encounter it unless someone wants to build a rail tunnel, sewage or water pipe, power line, airport, road, or other government memorial on, over or under your property. If they want to do it beside yours, though, you’re stuffed; you’re not entitled to a cent
Interest costs are never taken into account for the cost of any government spending.
Even when they should be, eg when National borrowed for tax cuts.
Sure they are:
Borrowing paid for infrastructure (roads etc)
Income tax cuts were covered by increase in GST….common labour lie to miss out the fact that the tax take was neutral.
“Income tax cuts were covered by increase in GST….common labour lie to miss out the fact that the tax take was neutral.”
Except that all subsequent budget updates showed that GST tax take was under forecasts, ie, the tax cut was “forecast” to be “neutral”, but in reality never was (and no-one with half a brain believed that tax cuts during a recession, immediately followed by the worst natural disaster in this country’s history, would be “neutral”).
Also, you’ve brought into the lie that the GST increase offset the tax cuts.
But it didn’t – it covered about 80-90% of the loss in revenue, but the remainder was covered up by “greater macroeconomic effects”. In other words, the government “forecast” that because of their “amazing economic management” and the tax cuts, that the economy would grow faster than it otherwise would have, and that that extra growth would make up the remainder of the lost revenue from the tax cuts.
There is no detail or justification for how they arrived at the figures that they did. In other words, for all we know, is the government said to treasury “we need to make up a hole of about $300M a year, can you make up some bullshit to justify that?”.
But the economy is growing, inflation is VERY low….therefore they were right and proven to be so by subsequent events.
Would the economy be growing by as much without the tax cuts they implemented?
I would argue yes, on the basis that the current growth is driven almost entirely by immigration, eg GDP per capita is staying about the same, even if the total GDP is going up.
I don’t think the previously higher tax rates would have made any real impact on our current rate of immigration, and therefore growth.
Furthermore, the current low level of inflation is a concern for the economy, which is why the RBNZ has kept trying to increase it by cutting rates.
You can argue all you like, the facts are that taxes are an impediment to growth and always have been everywhere.
No, that’s not true at all.
Taxes pay for infrastructure like roads and electricity networks, and services like police and healthcare.
If you want to see a country without any taxes or government at all, go look at Somalia and see how a country without taxes has no impediments to growth at all.
I didn’t say no taxes, I said they are an impediment to growth.
The higher and more taxes the govt. takes, the lower the growth.
There is a minimum and any govt. should strive to reach it.
After all it is the people who earn the money and the govt. that takes it, in the proportion that they decide (sounds like an extortion racket, doesn’t it).
Businesses:
1. Find the customers/supply the service.
2. source the product/service the customer wants.
3. sets the price the customer will/can pay over and above costs.
No mention of govt. here in the process of earning money whether by wages or profits.
Taxes are TAKEN from this process for reasons determined by the govt.
I am saying, that the govt. should limit the justifications it uses to TAKE that money from the very people who earn it and VOTE for them.
“I didn’t say no taxes, I said they are an impediment to growth.
The higher and more taxes the govt. takes, the lower the growth.”
Again, not true. If a government took in $1 in taxes (which is not “no taxes”), then they would not be able to achieve much in the way of public infrastructure with it. But if they took in $1B in taxes, then they could. That infrastructure enabled by that tax take would promote growth.
So clearly we have a case where “higher taxes = higher growth”, so your statement is false.
“There is a minimum and any govt. should strive to reach it.”
Yes. Can you tell me what the ideal minimum is for New Zealand? Do you have any evidence that shows that National has put our taxes at the optimum level? Given that we have huge backlogs in our health system, cuts in funding for police and other social services – funding per capita has decreased in real dollar terms since National has been in power.
The rest of your comment is irrelevant to the topic at hand.
Labour has made some good strides in its intentions to push for a decent warrant of fitness scheme for houses, and it would be good to see way more focus on it.
Let’s face it, while the anti-Labour carping on this site does get tiresome, it’s true that this kind of tinkering will not achieve much in a comprehensively fucked market.
A WOF works two ways – it renegotiates the relationship between tenant and landlord to improve the standard of homes and, especially if combined with rent and other controls, deters speculators from ‘investing’.
The thing is, Labour’s plan is not mere tinkering, and it will achieve a lot. It’s a far cry from what we have now under the key regime. Funny you should say that “anti-Labour carping on this site does get tiresome” when you did just that yourself !!
This might be a bit nuanced for ya leftie, but it’s reasonable to constructively criticise, while at the very same time being annoyed by the Labour is completely fucked and evil carping brigade!
But then, it’s a dynamic that you must be rather fond of, given you seem to get into long exacerbating arguments with its antagonists.
Andrew little is on fire at last a real leader ,a prime minster in waiting
Who are the losers ?
Over leveraged property investors
Those who have bought recently
Land lords who going pay there rents
Developers
Overseas buyers
Real estate companies
House building industry won’t be able compeat with mass produced homes
Baby boomers
Between now and the election who will buy I think labour has just savataged the housing market
Winners
Society
Fletchers
Those yet to buy
Banks ?????sudject to mortgage defaulters
“Working with the private sector and experts in fields like prefabrication, we can build standalone homes for $500,000-$600,000 in Auckland, with apartments and town houses for less than $500,000”
Will Labour force private building companies to do this work? Where is the evidence that private companies want to work for government. So many questions . Why so little answers?
too many questions for people like yourself who can’t count to 2.
Some companies don’t want government contracts? You need to get out more.
This kitset, ( ie all materials from timber to windows to fittings) is $110k ex rotorua, its 96m2 house. A 150m2 house is $150k
http://lockwood.co.nz/ModernHomeBuildingPlans/tabid/103/agentType/View/ID/290/Quartz-kitset.aspx
labour and land and consents are more , but they can be standardised.