web analytics

Housing NZ to build to sell

Written By: - Date published: 12:30 pm, October 31st, 2012 - 22 comments
Categories: housing - Tags:

Housing New Zealand is going to build some affordable houses in Christchurch and then sell them. It’s not a bad idea. In fact, if it were done right and en masse, it should have been a centrepiece of National’s empty ‘affordable housing’ announcment. But I fear it won’t be done right. It’s not enough just to build affordable homes: you need to make sure landlords don’t snap them up.

First, you need a capital gains tax to get the speculative money out of housing, which drives up prices in a giant ponzi scheme. That would give first homeowners a real crack at buying these houses.

Second, you could go beyond neoliberalism and determine the outcome, rather than leaving it to the market at all. Put a lien on the properties that they can’t be leased by the owners (with exceptions permitted by HNZ etc etc). By cutting the landlords out altogether, you would again make the homes more affordable for ordinary people.

Third, if you really wanted to make this work you would let Housing NZ tenants rent to own their properties with soft loans, which would be recycled into building more affordable, modern housing.

But, will any of these things happen? No. Not under National. These ‘affordable houses’ will turn out to be unaffordable as speculators, who are always going to be able to outbid a young family, swoop in and buy them up – then profit by renting them to those young families that they were built for.

22 comments on “Housing NZ to build to sell ”

  1. vto 1

    I see this and I wonder how Housing NZ will be able to do it any cheaper than those out there doing it now……

    The scale they are talking about suggests no economies of scale. They are looking at doing it together with developers so all the usual margins will be in there. Unless they are effectively doing it on a non-commercial return basis. i.e. out of the goodness of their hearts. But given the lack of heart in this government I simply don’t believe that.

    • onsos 1.1

      Nobody is bothering to build low cost housing. There is a lot more money for property developers in building more expensive houses. The government is not bringing down the cost of housing through its competitiveness, it is bringing down the cost of housing by doing something that property developers aren’t.

      • vto 1.1.1

        mr onsos, if you look around you will find housing options from under $40,000 (small and kitset) right up to $mullions. There is low cost housing, although (subtlety here…) it is expensive relative to what it should be. Compared to Oz house costs it is expensive on a square metre basis.

        The issue seems to arise in getting similar low cost land and then putting a low cost house on it. There is a missing match-up.

        The problem is multi-pronged.

        • onsos 1.1.1.1

          Not so much. Low cost land is low cost because it is undesirable. It is undesirable for solid reasons–it is expensive to live a long way from work and public transport, especially in a city with expensive public transport. This is why people pay high rents for substandard accommodation near the city.

          The answer is to increase housing density near city centres, and along transport corridors. This requires low and medium rise buildings. Answers that involve maintaining lower densities increase transport and infrastructure costs. That is, they are not low cost–and buyers and renters know this.

          Individuals and families cannot develop genuinely low-cost, medium density, low and medium rise housing. That is the domain of property developers. Property developers are not doing this because there is plenty of lower hanging fruit. It’s quite straightforward for government to do, however.

    • karol 1.2

      Rod Oram quoted some interesting stats on Nine-to-Noon yesterday.  They showed how much things had changed in recent decades.  Originally affordable housing was quite a high percentage of NZ new housing stock.  Now it is very low.  So what changed? 
       
      Oram rated the plans in Melbourne for affordable housing.  He said they are not extending the area in the city for building.  But they are doing things like building low level apartment blockss along transport routes, and integrated with shops etc.  It means it’s medium density, good for getting about, and still has a bit of a community feel.
       
      I couldn’t find anything directly with that plan online, but did find this 9 point plan:
       
       

      • insider 1.2.1

        WHat changed? A Labour government came in. Much of the acceleration according to Oram was under their watch.

        Ironically Rod spent much time admiring Melbourne as a city ignoring it is one of the most expensive home markets in the world – far more than any NZ city

    • Draco T Bastard 1.3

      It’s not about making them cheaper but about increasing profits, i.e, rewarding Nationals supporters.

  2. Draco T Bastard 2

    Housing New Zealand is going to build some affordable houses in Christchurch and then sell them. It’s not a bad idea.

    Yes it is as all it will end up doing is rewarding the banks.

  3. insider 3

    So are you saying you want a CGT on people’s homes to stop them selling them? Are you talking about all of them? And you also want to nationalise housing? Why not chuck in reindoctrination of the intelligentsia too.

    • vto 3.1

      Tell me oh great wise insider, in how many of mankind’s communities and societies and nations throughout history has there been individual dwelling ownership compared to communal dwelling ownership?

      It sounds from the tone of your comment that you are well clued up on this sort of thing and I would be curious to know…

      • insider 3.1.1

        Well in the English cultural heritage, the concept of individual ownership by other than the nobility runs back well over 1000 years. That is probably most relevant for our purposes when considering whether a groundshifting policy would be politically acceptable.

  4. Dv 4

    It is interesting that this was NOT announced by Bill yesterday?
    Dont the Nats talk to each other?

  5. Another doomed to fail scheme, and an attempt by the government to try and not live up to their responsibilities to the poor, working and middle class New Zealanders to provide state housing.

  6. millsy 6

    Sell the homes, but have the land as a 99 year lease…

    National policy to allow HNZ tenants to buy their home was a a step in the right direction (I was talking to a long-term state house tenant a few years ago who couldnt wait to be able to buy her home and do it up the way she wanted it), but where it fell over was providing no subsidy for tenants — they had to get a loan from the bank on their own.

    • PlanetOrphan 6.1

      One of the best Ideas I’ve heard M8!

      Would make ownership much more approachable.

    • fatty 6.2

      How about they just build them and give them away to people who have had a history of struggling to pay rent. But put them in with tight conditions for 10 years regarding the upkeep of the houses. If they get to 10 years and the house is in good condition, then they get to keep it.
      First in line can be people with children

      • Lanthanide 6.2.1

        Reward people who aren’t able to pay rent, while those who regularly pay rent get left out? Yeah, that’s fair.

        I also seriously doubt that someone who wasn’t able to pay rent for a state house would be able to do proper home maintenance over the course of 10 years.

        • fatty 6.2.1.1

          Nah…we could also help those who have managed to keep their heads above the water. We could do both. Don’t think of it as rewarding failure, think of it as not being a cunt.

          “I also seriously doubt that someone who wasn’t able to pay rent for a state house would be able to do proper home maintenance over the course of 10 years.”

          Really? …and why would poor people be incapable of keeping a house up to standard?
          If they do have a record of ruining a house, that’s probably cause they have nothing to lose, rather than an in-built tendency to wreck stuff.
          The big stick technique doesn’t really work with marginalised people…maybe we could try the big carrot instead?

  7. fatty 7

    Typical third way bullshit…the Government assists business and fills the pockets of the rich. Redistribution for the privileged.

  8. tracey 8

    Why dont we rezone inner city areas, like sandringham and dominion roads to allow maximum of 4-6 floor apartment blocks. All sitting on bus rputes and very close to rail.

    Use this as a model along main, non motorway, arterialnroutes

  9. SPC 9

    It’s a policy I advocated for Auckland a few years back – to create jobs and ease supply concerns. So I can only support this.

    But on the wider housing policy.

    It’s a tragedy that Bill English cites as a reason for inaction on the rise of values in Auckland – the prospect of homeowners having negative equity. Yet he will do nothing about the cause, people being loaned up to 100% loan finance. Is he saying the government will never allow property values to fall because they are continuing to allow 100% loan finance? Talk about a useless apologist for how things are, yet who is making no attempt to change anything. This speaks to his lack of credibility, or is it simply base self interest – a pro CG disposition.

    One could have lower deposit (on value of the home) requirement for first home buyers (they can be saving via Kiwi Saver), and a higher one for “investors”. Say 10% and 25%.

    Though I would allow a lower deposit level for investors building new homes.

    The alternative idea of a ratio between income and value to lending would of course diminish capacity to borrow against existing property – but this impacts on those borrowing against their home for business purposes. I’d rather just require a higher deposit level for second home purchase (and then set a maximum amount that could later be borrowed against such investment property – say 75% of the original purchase price and also 50% of current value so as to prevent property swaps).

  10. MrSmith 10

    The problem is with the banks and the absolutely stupid reserve bank policy of rising interest rates to check inflation.

    Rents put simply are just the interest on the money that was borrowed to build the house in the first place, interest rates rise, rents rise, inflation increases, the reserve bank rises interest rates, so rents rise, so less money in circulation and spending drops checking inflation.

    The Banks can’t lose whatever happens, the speculators like our dear PM clean up speculating and the man/women in the street gets screwed. At-least the Greens are talking about changing this rigged game, but watch the people who come out swinging against any change they are the criminals.

Recent Comments

Recent Posts

  • “THE LEGAL AND CONSTITUTIONAL IMPLICATIONS OF NEW ZEALAND’S FIGHT AGAINST COVID.”
    Speech to the New Zealand Centre for Public Law Tēnā koutou katoa Thank you for providing this opportunity to speak with you today as Attorney General. I’m here to talk about the constitutional consequences of Covid -19. I love the law. The way it exists with the consent of the ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • The legal and constitutional implications of New Zealand’s fight against COVID
    Speech to the New Zealand Centre for Public Law Tēnā koutou katoa Thank you for providing this opportunity to speak with you today as Attorney General. I’m here to talk about the constitutional consequences of Covid -19. I love the law. The way it exists with the consent of the ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Pharmac Review interim report released
    Health Minister Andrew Little has released an interim report by an independent panel reviewing the national pharmaceuticals-buying agency Pharmac. Pharmac was established in 1993 and is responsible for purchasing publicly funded medicines for New Zealanders, including those prescribed by GPs or administered in hospitals. The review, chaired by former Consumer ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Appointment to Network for Learning board
    Former MP Clare Curran has been appointed to the board of Crown company Network for Learning (N4L), Education Minister Chris Hipkins says. Hon Clare Curran served as a Member of Parliament for Dunedin South from 2008-2010. During this time, she held a number of ministerial portfolios including Broadcasting, Communications and ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Putting home ownership within reach of Pacific Aotearoa
    Pacific community groups and organisations will get tools to help them achieve home ownership with the implementation of the Ministry for Pacific Peoples (MPP) Pacific Housing Initiative, said Pacific Peoples Minister Aupito William Sio. In July 2021, MPP launched the Pacific Community Housing Provider Registration Support programme and the Pacific ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Coastal shipping will help keep New Zealand’s supply chain buoyant
    Transport Minister Michael Wood today welcomed the release of the Coastal Shipping Investment Approach State-of-Play report as an important step towards a more sustainable coastal shipping sector, which will further diversify New Zealand’s supply chain. “This Government is committed to strengthening our domestic supply chain by making coastal shipping a ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Response to Human Rights Commission's reports into violence towards disable people
    Tēnā koutou, tēnā koutou, tēnā tātou katoa.   Thank you for that introduction Hemi and thank you for inviting me to respond on behalf of Government to the release of these two important reports (Whakamanahia Te Tiriti, Whakahaumarutia te Tangata -Honour the Treaty, Protect the Person and Whakamahia te Tūkino kore ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Law change strengthens petroleum decommissioning regulation
    Petroleum permit and licence holders operating in New Zealand will now have an explicit statutory requirement to carry out and fund the decommissioning of oil and gas fields after a new law was given Royal assent today, says Energy and Resources Minister Dr Megan Woods. Once in effect The Crown ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • New Zealand Response to assist peace and stability in Solomon Islands
    The New Zealand government has announced that it will deploy Defence Force and Police personnel to Honiara to help restore peace and stability. “New Zealand is committed to its responsibilities and playing its part in upholding regional security,” Prime Minister Jacinda Ardern said.  “We are deeply concerned by the recent ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Continued growth in volume of new home consents
    In the year ended October 2021, 47,715 new homes were consented, up 26 per cent from the October 2020 year. In October 2021, 4,043 new dwellings were consented Canterbury’s new homes consented numbers rose 31% to higher than post-earthquake peak. New home consents continue to reach remarkable levels of growth, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Saddle up for summer with cycle trail funding
    New investment will keep the best of New Zealand’s cycle trails in top condition as regions prepare to welcome back Kiwi visitors over summer and international tourists from next year. “Cycle tourism is one of the most popular ways to see the country ‘off the beaten track’ but the trails ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand provides additional funding to COVAX for vaccine delivery
    Foreign Affairs Minister Nanaia Mahuta today announced additional funding will be provided to COVAX to support vaccine delivery in developing countries. “New Zealand remains cognisant of the dangers of COVID-19, especially as new variants continue to emerge. No one is safe from this virus until we all are and this ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • COVID-19 Community fund providing support for 160 organisations focused on women and girls
    Minister for Women Jan Tinetti today announced financial support will be allocated to the 160 successful applicants for the COVID-19 Community Fund, to support organisations helping women/wāhine and girls/kōtiro in Aotearoa New Zealand affected by the pandemic. “COVID-19 has had a disproportionate effect on women around the world including in ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government delivers reactivation package as Aucklanders reconnect for summer
    A new support package will help revive economic, social and cultural activities in our largest city over summer, and ensure those in hardship also get relief. The Social Development and Employment Minister Carmel Sepuloni and the Economic and Regional Development Minister Stuart Nash have announced a Reactivating Tāmaki Makaurau Auckland ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Mobile services and broadband come to Chatham Islands for first time
    World class mobile and broadband services have been switched on for the 663 residents of the Chatham Islands, Minister for the Digital Economy and Communications, David Clark and Minister for Economic and Regional Development, Stuart Nash announced today. “This eagerly awaited network will provide fast broadband and mobile services to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Crown accounts reflect strong economy amid pandemic
    The Government’s financial accounts continue to reflect an economy that has performed better than expected, despite the latest Delta COVID-19 outbreak. The Crown accounts for the four months to the end of October factors in the improved starting position for the new financial year. Core Crown tax revenue was $2.5 ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Applications open for new 2021 Resident Visa
    The first round of applications for New Zealand’s new 2021 Resident visa open today (6am). “This one-off pathway provides certainty for a great many migrant families who have faced disruption because of COVID-19 and it will help retain the skills New Zealand businesses need to support the economic recovery,” Minister ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More Vietnam Veterans to receive compensation for Agent Orange Exposure
    Minister for Veterans, the Hon Meka Whaitiri announced today that two new conditions associated with Agent Orange exposure have been added to the Prescribed Conditions List. Under the 2006 Memorandum of Understanding signed between the Crown and representatives of Vietnam veterans and the Royal New Zealand RSA. Vietnam veterans in ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government commits to international effort to ban and regulate killer robots
    Minister of Disarmament and Arms Control Phil Twyford announced today that New Zealand will push for new international law to ban and regulate autonomous weapons systems (AWS), which once activated can select and engage targets without further human intervention. “While the evidence suggests fully autonomous weapons systems are not yet ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New freedom camping rules – right vehicle, right place
    Tougher freedom camping laws will be introduced to prevent abuse which has placed an unfair burden on small communities and damaged our reputation as a high quality visitor destination. Tourism Minister Stuart Nash has confirmed that new legislation will be introduced to Parliament following an extensive round of public consultation ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government invests to support a classic Kiwi summer
    Vaccinated New Zealanders can look forward to Kiwi summer events with confidence, while artists and crew will have more certainty, following the launch of details of the Arts and Culture Event Support Scheme, Minister for Arts, Culture and Heritage Carmel Sepuloni announced today. “The Government recognises that the arts and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Grace period for expired driver licences cruises into 2022
    Due to the ongoing Delta outbreak and extended lockdowns, all New Zealand driver licences and licence endorsements that expired on or after 21 July 2021 will now be valid until 31 May 2022, Transport Minister Michael Wood announced today. “This further extension to the validity of driver licenses recognises that ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Delivered: 1,000 extra transitional homes
    A further 1,000 transitional homes delivered  New housing development starts in Flaxmere, Hastings  The Government has delivered the next 1,000 transitional housing places it promised, as part of its work to reduce homelessness. Housing Minister Dr Megan Woods is marking the milestone in Hastings at a new development that includes ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Traffic light levels announced
    The levels at which different parts of New Zealand will move forward into the COVID-19 Protection Framework this Friday have been announced. Northland, Auckland, Taupō and Rotorua Lakes Districts, Kawerau, Whakatane, Ōpōtiki Districts, Gisborne District, Wairoa District, Rangitikei, Whanganui and Ruapehu Districts will move in at Red The rest of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Financial support to move to traffic light system
    A new transition payment will be made available particularly for affected businesses in Auckland, Waikato and Northland to acknowledge the restrictions they have faced under the higher Alert Levels. Transition payment of up to $24,000 as businesses move into traffic light system Leave Support Scheme and Short Term Absence Payment ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Ambassador to Russia announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Sarah Walsh as New Zealand’s next Ambassador to Russia. “Aotearoa New Zealand and Russia have a long-standing relationship, engaging on a range of regional and global interests including disarmament and Antarctica issues. We also work together as members of the East ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Permanent Representative to the UN announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Carolyn Schwalger as Permanent Representative to the New Zealand Permanent Mission to the United Nations in New York. “Aotearoa New Zealand is a founding member of the UN and we have worked hard to ensure our stance on human rights, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Further COVID-19 economic support for Cook Islands and Fiji announced
    Foreign Affairs Minister Nanaia Mahuta today announced a further package of support for the Cook Islands and Fiji for COVID-19 economic support and recovery. “Aotearoa New Zealand remains committed to supporting our Pacific fanau and vuvale to respond to the impacts of COVID-19 on their economies, and move towards long-term ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New law will clear the air for tamariki in vehicles
    From today, it’s illegal to smoke or vape in most vehicles carrying children aged under 18 years old - whether the vehicle is moving or not. “Second-hand smoke poses an unacceptable risk to our tamariki and rangatahi,” Associate Minister of Health Dr Ayesha Verrall said. “We know children in vehicles ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Nine countries designated very high risk
    Nine southern African countries are being added to the very high risk countries list following public health advice around the newly discovered COVID-19 variant Omicron, COVID-19 Response Minister Chris Hipkins said. This afternoon, a public health risk assessment was carried out to assess the emerging evidence and any risk to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Foreign Affairs Minister concludes final stage of world trip
    Foreign Affairs Minister Hon Nanaia Mahuta today departed North America to return home to Aotearoa, concluding the last stage of her 17-day world trip. The final leg of her trip saw her visit the United States of America and Canada for a number of high-level discussions. While in Washington D.C., ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Milestone launch of Pacific Languages Unit
    Today’s official launch of the Pacific Languages Unit is a milestone for our Pacific communities, the Minister for Pacific Peoples, Aupito William Sio said. The Pacific Languages Unit brings together a new set of language supports within the Ministry for Pacific Peoples to provide advice, commission research, maintain standards, promote ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Public Health Lecture – University of Otago
    Public Health - Lessons from New Zealand’s COVID-19 response and opportunities for the future E nga mana, E nga reo,                                          E nga iwi. Tēna koutou katoa. Ka huri ki nga mana whenua o te rohe nei. Tēna koutou. He mihi hoki ki a tatou kua tau mai nei I raro I ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand statement on situation in Honiara, Solomon Islands
    Aotearoa New Zealand is deeply concerned by the events which have been unfolding in Honiara, Solomon Islands, since Wednesday. “New Zealand is a long-standing partner of Solomon Islands, and there are deep and enduring connections between our two countries,” Acting Foreign Affairs Minister David Parker said. “Our engagement in Solomon ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Nailed it! Over 500 apprentices get jobs boost
    Over 500 apprentices and cadets have been placed into work across New Zealand thanks to the Government’s booming build programme, that’s both constructing public houses, and maintaining older homes. Housing Minister Megan Woods announced the milestone today at a public housing construction site in Riccarton, Christchurch. “This Government’s investment in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Investment to support maternal mental health
    Associate Minister of Health Dr Ayesha Verrall has announced an investment to help expand maternal mental health services in five District Health Boards. “Supporting parent’s mental wellbeing during their child’s first 1000 days, from conception to two years of age, is critical to the long-term emotional, mental and physical wellbeing ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Workplace vaccination requirements extended to cover Police and NZ Defence Force
    With the support of the organisations, additional vaccination requirements will cover sworn members, recruits and authorised officers of the New Zealand Police, and all New Zealand Defence Force staff. First doses of the vaccine for workers in these organisations are required by 17 January 2022, and second doses by 1 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Aotearoa New Zealand and Canada to pursue greater Indigenous collaboration
    During her visit to Ottawa, the Honourable Nanaia Mahuta, New Zealand Minister of Foreign Affairs and Associate Minister for Māori Development, met with the Honourable Patty Hajdu, Canadian Minister of Indigenous Services, and the Honourable Marc Miller, Canadian Minister of Crown-Indigenous Relations, to further expand and develop the positive relationship ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Māori vaccination rates reach 80% first dose
    Associate Minister of Health (Māori) Hon Peeni Henare today confirmed that Māori across the motu have now reached 80 percent for first doses of the COVID-19 vaccination nationally. “We have seen a huge increase in vaccinations for Māori throughout November, since the beginning of the month the increase for first ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Subsequent Children legislation to change
    The Government has today introduced legislation that will reverse provisions in the Oranga Tamariki Act as part of a path to rebuild trust and confidence in the organisation. “The Oranga Tamariki Amendment Bill makes a number of changes but by far the most important is the partial repeal of the ...
    BeehiveBy beehive.govt.nz
    1 week ago