National plans to sell Housing Corp home Key grew up in

Written By: - Date published: 8:30 am, November 25th, 2016 - 39 comments
Categories: housing, john key, national, Privatisation, same old national, the praiseworthy and the pitiful - Tags:

john-key-work-here-is-done

John Key, the State house tenant turned merchant banker whose ascension to the top job depended heavily on his ordinary Kiwi turned good persona, is overseeing the sale of the state house that he has relied on so heavily for political advantage. The circle is now complete.

The sale will be part of a planned mass divestment by Housing Corp of thousands of homes in the Christchurch area to social housing providers. The divestment is essentially an acknowledgement that well intentioned community groups can do a better job of providing housing for poor people than the politicians and senior managers currently in control in this country. Up to 2,500 houses in the Christchurch North area are tagged for divestment.

But some of the groups are not happy with the proposal and have this rather radical idea that the Government should be helping the homeless, just like it has successfully done since the time of the first Labour Government. Those were the days …

From Stuff:

… Christchurch Methodist Mission executive director Jill Hawkey ruled her organisation out of taking on any properties.

“The Methodist Church, which the Methodist Mission is part of has joined with Salvation Army and both of us have said we don’t actually agree with the Government’s policy of transferring state houses into the control of community housing providers in this way.”

Hawkey said it was the Government’s responsibility to provide housing to those that struggled to enter the market.

Korowai Youth Well-Being Trust chairperson and director of 298 Youth Health Dr Sue Bagshaw shared Hawkey’s view.

“This is complete avoidance of their responsibility to provide for a human right of providing houses for those that can’t afford it themselves.

“I think it’s . . . making community groups that have no money or resources in the first place be responsible for doing something they don’t have the resources to provide.”

The sell off will not create one new house and will create churn and disruption for tenants.  But at least the next time Key talks about his state house days he can be asked why he is removing the possibility of another young person to have a decent roof over his head so he can get a decent education and then become Prime Minister.

Shame on you John Key, shame on you.

39 comments on “National plans to sell Housing Corp home Key grew up in ”

  1. Puckish Rogue 1

    This is strange and I’m as shocked as you, like me you probably thought the house would have been turned into a museum or shrine or something, I guess its the measure of the man he doesn’t need anything so tawdry

    🙂

    • lprent 1.1

      He has higher aspirations for a monument.

      1. A new Flag 🙂 Opps 😈
      2. A great new trade agreement 🙂 Opps 😈
      3. A photoop with Letterman 🙂 Yeah right – that went down like a post drunk bacon and eggs.

      I could go on. However, perhaps he when he started the process of destroying state housing, he had higher expectations of what he was actually capable of. Call it the Trump effect.

      Perhaps he started the process of making the HNZ stock deteriorate (because he was using all of the maintenance money as dividends to pay for his excessive taxcuts for the wealthy), BEFORE he realised he was quite ratshit at achieving anything productive.

      • Puckish Rogue 1.1.1

        See normally I’d point out here that in each election since 2008 National has gained more votes then the previous election

        I’d also point out that even after eight years of being in power National are still polling mid 40s and the next largest party is struggling to break 30

        I’d even suggest that National are looking likely (in my ever humble opinion of course) for a fourth term all of which is unprecedented in MMP environment

        All of which suggests the voting public might not agree with you as much as you think it does…or another possibility is that the voting public just don’t care about these issues as much as you think they should

        However I won’t as its a Friday morning and its far too early for the big, black bold to come out so instead I’ll just say agree to disagree

        • Brigid 1.1.1.1

          So considering these attempts
          “1. A new Flag. Opps 😈
          2. A great new trade agreement. Opps 😈
          3. A photo op with Letterman. Yeah right – that went down like a post drunk bacon and eggs.”
          you disagree that key has higher aspirations for a monument.
          Ok. Fair enough.

    • b waghorn 1.2

      go buy it pucky then you can go buy a ponytail wig and have a wank in keys old room while you fondle it, a fit homage to your idol i think.

      • Puckish Rogue 1.2.1

        No no you can’t commit onanism to John Key because he’s no mere mortal, he’s more than a man, he’s a man-god

        Kneel before Key!

  2. Takere 2

    Meanwhile, “in the other hand” …. State Houses are been removed in Glen Innes overnight! 71 Taniwha St in GI.
    Not a peep on mainstream or any media?

  3. Heather Tanguay 3

    Good points Key is no longer interested in these houses or his past, he has achieved questionable greatness.
    I am not surprised the Methodists and Sally’s do not want a bar of it.
    Community agencies see this for what it is worth, they do not to get involved in the tawdry business of buying homes the government should be providing.
    This is further evidence of Key’s government treating the community with contempt and complete indifference.yw

  4. mosa 4

    Takere of course there wasnt a peep.

    If its not a Key photo op or a sensational headline or something they can make up then you wont hear or see anything.

    Key and the National party media have moved on.

  5. slumbergod 5

    [Too far. Tone it down – MS]. He is a parasite on society.

    • BM 5.1

      Wanting to kill others because your life’s been a bit of a failure is not healthy.

      I recommend seeing a professional before you do something stupid.

    • Stunned Mullet 5.2

      Mods clean up in aisle 3…

      • Bob 5.2.1

        For future reference, you can still delete posts after you have submitted it, you just need to “Click to edit” first and the delete button then appears.
        Good to see you promptly backed away from your reference to either homicide or suicide though, not a good look.

        • One Anonymous Bloke 5.2.1.1

          Neither is failing to notice that Stunned Mullet and Slumbergod are two different people.

    • Muttonbird 5.3

      Possibly a bit harsh.

  6. Adrian Thornton 6

    The most consistent thing from National over the years is their complete inability to see the amazing irony in many of their actions, sort of funny and very disturbing at the same time.
    Of course it is also a very good way to gauge the slavish blind obedience they have to their free market ideology, which is fast unravelling before their eyes.

  7. Siobhan 7

    “When they moved into 19 Hollyford Ave, they found a neighbourhood that was warm and inviting.

    A recently-settled state housing area surrounded by more affluent streets, Hollyford Ave was home to working class people. The Key’s neighbours included a milkman, a rubber worker, a sheet metal worker, and a freezing worker. Bruce Faith, at number 17 when the Keys moved in, says it was “a wonderful community”.

    “We were all in the same boat at the same time – we were all struggling and helped each other out,” he says. Fathers worked the vege garden, helped their neighbours dig their plots, children played in the street. ”

    I know it wasn’t all sweet as roses…but I feel sad that the idea of ‘community’ has been so thoroughly destroyed…who even really knows their neighbours anymore?? and that NEITHER of the two main political Parties have a strong enough vision to rebuild such a thing

    Long term leases, night classes, strong local schooling with well funded swimming pools, community housing with attached community gardens…nothing radical, its doable if we could all stop obsessing about making money from houses.

    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10522310

    • mauī 7.1

      The Key’s neighbours included a milkman, a rubber worker, a sheet metal worker, and a freezing worker.

      Today half of those jobs don’t exist anymore. Freezing workers much reduced. Maybe only steel work has had growth. That all hurts the community too.

      • Siobhan 7.1.1

        It maybe doesn’t matter if the jobs have physically changed, the issue is that the terms of employment and the security of the jobs has evaporated. And if Labour thinks that having a community sitting round half the year relying on a UBI is the panacea they need to read a few more dystopian science fiction books.

  8. Tiger Mountain 8

    keep the place as a shrine to “ladder pulling”–and ponytail pulling too maybe

    it is instructive to note that the reforms begun by the first Labour Government have still not been totally rolled back after 75 years! and it still bugs the hell out of the tories, which is why todays Labour needs to take their history seriously and fully repudiate Rogernomics if they hope to beat the Nats and make such significant changes again

  9. DH 9

    There’s some very interesting financial information on these state house sales in HNZs last annual report

    http://www.hnzc.co.nz/publications/annual-report/

    Pages 72, 73;

    “…, encumbrances were then placed on the titles of the Tauranga and Invercargill properties in order to ensure their purpose for social housing would be maintained for at least 25 years into the future. …. cut ……. The placing of encumbrances on the property titles prompted the need to recognise both a revaluation of the properties
    (to take account of the rise in market values from 1 July 2015 to 4 March 2016), and the reduction in book value arising from the encumbrances themselves. The effect of the revaluation on the carrying amount of these properties was an increase of $42 million (or 13 percent) for Tauranga …. ……..

    The impact of the encumbrances on the carrying amount of these properties was a decrease in book value of $224 million (or 62 percent) for Tauranga….”

    What they appear to be saying is that because the properties are to be encumbered for 25 years as solely for use as social housing they’re worth only 38% of their current market value.

    In simple English they look to be literally giving away $224 million of taxpayer money on the Tauranga deal alone.

    • the pigman 9.1

      They’re also flogging the Chch HNZ at a time when the Chch market is stagnant or not declining compared to the rest of the country. It is, in no uncertain terms, a fire sale.

      • DH 9.1.1

        It’s more than a fire sale. The Tauranga state houses have been valued at $361 million and they look to be selling them for $138 million

        I honestly hope I’ve read it wrong…. don’t think I have though.

        • Takere 9.1.1.1

          I wonder if and when this sale goes ahead. They’ll introduce the same scam that Ak Council & Nick Smith with iwi are doing up here?
          Pretending to help people into a home by letting them pay rent on home in one of these Social Housing Schemes?
          People think theyre buying a mortage when in fact they’re buying into an “Equity Loan” scheme!
          They don’t own or hold the mortage certificate, the “Trust” does. There is no fixed price on the home as they are a tenant for a period of time, lets say 5 years. Then and only then they’ll become aware of what the actual cost will be and they will be paying a few more percentage points above a mortgage which they could get at a bank!
          An equity loan is susceptible to market fluctuations and you lose both ways! If the price of the home goes up you lose equity. If it goes down you lose equity value which means you’re landed with a equity loan worth more than the value of the house!
          Is that a scam? Especially for people that can’t afford to buy a home in the first place and are again getting taken advantage of again!
          TRC in Panmure GI are ramping up to do just this with over 7500 houses to be built over the next 15 years.

          • DH 9.1.1.1.1

            Do you have any references for that Takere? I’ve never heard of it, wouldn’t mind knowing more.

            • Takere 9.1.1.1.1.1

              Its been implemented at a development in Wai-Mahia in Manurewa Manukau, Auckland. The Partnership Group-Consortium are a bit reluctant to provide info.

              http://www.nzhf.org/housing-projects/30-waimahia-inlet-development

              http://www.waimahiainlet.co.nz/
              Janice Thompson
              Subject: Stage 5- Waimahia Inlet new housing subdivision

              Goodmorning Everyone
              Housing Foundation is fast approaching our last stage at the new Waimahia Inlet housing subdivision.

              Te Tumu Kainga is one of our key partner organisations who provide housing pathways for whanau Maori. I am acting on behalf of them.

              We are seeking interest from whanau Maori who want to own their own home and meet the following criteria :

              They do not currently own their own home- they are renting or boarding

              They are New Zealand citizens

              At least pne person is in full time permanent work.

              They earn between $78,000 to $95,000 gross annually combined- can include Working for families tax credits

              They have low or no debt

              They live within the Auckland area

              They have between 3 – 6 people in their household.

              If you know any whanau or friends who might be eligible please send this panui on to them and they can either email or contact me on 021 022 35950, alternatively please forward me their contact details and I will get in touch with them.
              Janice
              Housing Foundation
              021 022 35950

              • DH

                I don’t see the hooks Takere, on the face of it that looks like they’re assisting people to buy a home. I’d question how a first home buyer would get a mortgage when someone else is keeping a 25% share, the banks would want the entire property as collateral, but I guess that’s already been sorted somehow.

                • Takere

                  Research Equity Loans ….Valueless Shareholding. Its a scam. Its not a mortgage. The entry price/cost of the house is an unknown until the tenant qualifies to purchase shares. If you don’t get that, its probably beyond your grasp of the concept in place?? Maybe?

                  • DH

                    Now now Takere, keep it seemly here. I understand this kind of thing better than most, I just need the details.

                    The “Affordable Equity” deal as explained in the web link you gave was that people could buy 75% of the house and take out a mortgage on it. The other 25% remained owned by the Housing Foundation (HF) who charge no interest or rent on it, only a $500 annual management fee.

                    The home buyer could then purchase the remaining 25% over time if they desired. The catch looks to be that it would cost current market prices to buy out that 25% but that in itself doesn’t seem too bad a deal if the rest is on the level. HF would need some return on the equity they left in and that return looks to be the capital gain which is reasonable enough in that scenario IMO

                    It may well be a scam but I need to see some evidence of that before I assume such. A typical scam with this kind of deal is where they overvalue the property by 25% making the buyer pay what in effect is full price and then milking them for as much as possible. I don’t see any evidence that’s happening there….

                    • Takere

                      There is more to this story … but when the only way you can sign up and/or get more info is to attend a meeting by invitation only and no written material is provided until you’re about to sign up?? It’s in the hands of the SFO. It ticks all the boxes as a “Madoff” scam which is why the SFO has put it on their watchlist.

  10. Graeme 10

    The first rung on his ladder to wealth and becoming Prime Minister was the social ideology of providing housing for the less fortunate, that their children would have a firmer foundation. The PM doesn’t seem to want others to have the benefit that his fore-bearers gave him.
    For myself a similar social policy enabled me to change career paths when I became a single parent by the same path that Paula Bennett took (subsidised university)- but, yes, she destroyed that pathway for others as well – another rung removed.
    Do they not realise that Brexit and Trump are symptoms. That the globalisation and capitalist greed driven by the banking sector have failed.

    • NZJester 10.1

      I remember to when Paula Bennett as minister of Social Welfare scraped the very scheme that helped her out on her way to the top. The National Party is full of those not only pulling the ladders up behind them so that others can not use them, but tipping scolding hot oil down to knock anyone off that is trying to climb up the bare wall by looking for fine cracks to get a handhold in.

  11. Treetop 11

    I’d like to know how long he lived in the state house?

    I have asked this question before.

  12. mary_a 12

    “National plans to sell Housing Corp home Key grew up in … ”

    Perhaps instead of selling the property, it might be a better move to burn the place to the ground, removing the fetid contaminated stain and stench once and for all, of the treasonous creature that the house once gave shelter and nurtured as a child!

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