So after 3 and a half years, we have to wait another six months for another working group to start from scratch to evaluate light rail. It doesn't even sound like Dominion Rd is a definite as they've now mentioned Sandringham Rd. So absolutely nothing has been decided.
This project was originally sold to us as a much needed rail connection to the Auckland International Airpor. But it definitely won't be connecting to the airport anytime soon. (if ever).
So what's it all about?
Don't we ever learn?
Doesn't anyone remember the vanity project that was the viaduct light rail?
Developers thought it would be hoot to get rate payers to fund this vanity project to give their condo development a bit of a boho look. This vanity project has served its purpose and, despite all the big talk of extending it down Quay street to the Britomart transport hub, has been moth balled.
Now again there is talk of developers cashing in. With plans for multi-level condiminiums down the length of Dominion Road.
Of course these developers want a light rail, tramway, or whatever you want to call it down the length of Domininiou Road. Don't matter if, like the viaduct tramway, it doesn't actually connect to anything, because the tax and ratepayes will be footing the bill. But it will look flash. (for a while anyway).
Talk is, the construction will drive all the small businesses retailers down Dominion Road to the wall, and the developers will be able to buy up all these properties in a fire sale.
And the character of Dominion Road will be changed forever.
I feel I want to throw up.
I mean really, haven't we had enough of corpoarate welfare in this country?
Meanwhile Puhinui Road and the South Western Motorway is crying out for relief from traffic congestion to the airport. Let's get all those cars off the road The corridor is there. The need is there. Mike Lee saw the wisdom of it. The main trunk rail line is ritht there. What could be simpler. Even that old dinosaur Winston Peters with his populist air to the ground knew he could make political capital over the light rail vanity project down Dominion Road. The light rail project down Dominion Road, (or possibly down Sandringham Road) benefits no one except very limited special interest groups. It won't benifit workers who want to commute to their airport or nearby support workplaces, who currently find themselves in near grid lock traffic jams every working ding dong day.
It doesn't benefit arriving and departing air travelers from who want to get into and out of the city centre with as least hassle and time, and with a certaintly of timely arrival.
It doesn't benefit local businesses and residents.
Let's hope this disorganised dog's breakfast gets so tangled up in its own hubris that it never actually leaves the drawing board or the fevered imaginations of the condo builders.
So from today the minimum wage increases from $18.90 to $20 which will help some people. (I still think it would have been better to give everyone an extra $40 in the hand by changing the tax brackets so less tax is deducted). The tax brackets have not been adjusted since 2009? and both Nats and Lab have never adjusted for inflation. Any income over $48k is taxed at 30% which is way too high. And income over $70k that used to be 'rich pricks' income at33%. Well $an income of $70k is not what it used to be.
Wish they would do something about dependent partners – they managed to for the COVID response. The extra tax (about 5,000 per year) a single person supporting two people pays over two people earning the same income might enable things like Kiwisaver that simply isn't affordable supporting two people affordable – let alone saving for retirement for two people.
Oh that is right they did do something – they removed the ability of partners to get NZS so now the working partner has to work even longer.
Boo! Auckland Light Rail development according to Rt. Hon. Jacinda Ardern on RNZ this morning, is open to Public Private Partnerships–the NZ Labour Caucus monetarists (and their fifth columnist prodders in Govt. Ministries) invite further penetration of what should be public infrastructure by private capital.
"It is all about growth. Even when it is clear that more and more people want and need a reliable, trustworthy public broadcaster on free-to-air radio, the ultimate aim for RNZ is about boosting numbers.
Sometimes this “growth fanaticism” is presented cleverly. It has been described as a ‘moral obligation’ for RNZ ‘to build lifelong relationships with all New Zealanders’.
But ultimately it is the same ethos as listening to ambitious sales people talk about their targets."
In other breaking news on April Fool's Day the Prime Minister has decided that the Deputy Prime Minister will enter a Monastery and Mr Robertson has chosen to take an extended stay in the Kopua Monastery in Central Hawkes Bay. His parting words were "I shall spend my remaining years in prayer that my offences against the New Zealand people may be forgiven. I shall never speak again".
This is a Trappist establishment. Trappist monks do not take a vow of silence but do not indulge in "idle conversation". This is a problem for Grant as idle conversation comprises his entire repertoire.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
I think this Housing Crisis situation must be happening in most country's that adhere to neo liberal policy. Pulling back on state house building and selling off the same to reduce "big government" is a huge loser policy for the people that need it. And speculation in housing also rampant around the world with the same result-unaffordabilty. I think supply issues are not to blame in affordabilty, got fuck all to do with it IMHO. Our world pricing systems are all driven by demand regardless of supply levels. Butter anyone? We are surrounded by cows yet the price is up. Same with houses. Controls are needed but won't be forthcoming under neo liberal Govt's. Stuck with it!
For those buying their first home there is a huge discount provided by the Govt for new builds, so the incentive to buy existing houses by new buyers is just not there, and there is no upwards pressure on the market. House prices for 3 – 4 bedroom homes have stayed around the 350k – 450k range for years.
It does and it dosnt…..western central banks are members of a club and if you want the benefits of belonging to that club you play by the rules…and the rules are set by the hegemon…currently the US.
The government CAN decide it dosnt want to be in the club but that means losing the benefits of being in the club….and they fear that more than anything else at the moment.
Essentially, unless the Government decides the cost of being a member of the club is too high they are little more than middle management or worse, sales reps.
Fact is that successive WA Governments have consistently supported their construction and building industries thus maintaining and preserving a dedicated labour force. So there is no shortage of housing stock. They are in the fortunate position also of having abundant land available for development, and they have a well developed public transport system that supports these new developments. The biggest crisis as far as WA is concerned is the availability of water. There is a huge aquifer and a massive salt water desalination plant, but the rainfall in the area has steadily decreased over the last few decades as a result of the Hadley Cell shifting south with AGW and dramatically changing the climate.
Knew about the support, was unaware of the water issues and will note that the support dosnt prevent crashes if conditions are right,
"Values in Perth and Darwin are more than 20% below their 2014 peaks, while the remaining capital cities have seen housing values move to new record highs through the COVID period."
Yup. Aussie Citz get a 50k handout for new builds I think. If that's true and could be used to support the deposit then a great help, well done AU. SFA this side of the ditch tho!
Checking out Real estate windows on the Goldie shows pricing cheaper than Tauranga/Hamilton and way down on Auck. Sydney not so good tho. Go figure.
Our Gov did that years ago by allowing Kiwisaver funds to be used for 1st home deposits and then added a grant on top…..if joe public cant save the deposit (because of high rents living costs in relation to wages) then a mechanism needs to be provided to put a floor under the market.
That might look as if it is in Perth but it is actually quite a long way south.
It has about the same relationship to Perth as Paraparaumu has to Wellington, or the Auckland CDB to Karaka.
Perth has been in a depression for a couple of years now with the mines in the north of the state caught up in the Chinese row with Australia and the FIFO people who work there and live in Perth out of work. There are a lot of houses in the area for sale.
Warnbro, which is the local station on the Mandurah line, is a 40 min ride into the city. There is a train into the city every 10 mins. You might as well live there as in the City. I enjoy riding the train, and passing the cars on the Freeway as you travel at well over 130kph, and no traffic jams.
Agree…it goes back to the liberalisation of the finance and banking sector that essentially gives the banks a free hand to create credit (debt) as they like and so they have….and why wouldnt they, greater credit means greater profit for them.
Especially when they now know that when they overdo it the public purse will bail them out a la GFC.
Did you notice what The Chancellor did in 2015 that was meant to solve the housing problem. It didn't do anything did it?
Now can you see any real difference between that and what Grant has just announced here? No? So what makes anyone think that the current Government actions will do anything at all to even ameliorate, much less solve the New Zealand problems?
Did anyone look at the link?…i have no idea, but i would suggest a couple of points, firstly they already had a reduced offset ability that was further reduced, unlike here where we have gone from 100 mph to zero in one hit, and as I have constantly espoused it is sentiment driving the market, sentiment spun by the vested interests.
But in a way you are correct, the underlying driver is the availability of credit which is the point, that is driving the price growth but that easy money (supported by ever decreasing interest rates) has run out of road…where to from here?
80 convictions for breaching protection orders. Now if only the authorities had been this assiduous about dealing with certain male stalkers or abusive ex-partners ….
Now personally I don't get all hot and bothered about patches. Living in the un ironically named Nash Street, in the middle of the Hood, I probably should ..but I just block it all out.
The issue I have is particularly with Nash, who rants and raves about a number of issues…only to disappear from the room when in a position to actually act on his beefed up "manly man" "Get Hard" rhetoric ..gangs, housing, jobs, fisheries…all have been through the same wash with Nash.
I've often said, given his stance on a number of issues, he should have joined the National Party. And as it turns out…by now he could well be Leader of the National Party.
Instead Labour are stuck with him. Like the kinda annoying cousin from the provinces that makes you dread the family Christmas year in year out.
But then again, it would seem he fits perfectly with Labours policy of incremental inaction..
Napier has the highest ratio of people in the country waiting for stable housing. Half of the motels are housing people who would be living on the street. Other areas have a high need as well.
An older teenager might find joining a gang giving them security or a place to escape. The one thing the government can do is build more state houses to deter youth joining a gang. Once in a stable home then the older teenager could look at job training or furthering their education. Youth are under so much strain when living in poverty. When home is an unhappy place a teenager will find ways to spend as little time there as they can.
Indeed. Like you say…The two problems that lead to gang membership here in the hood …dire lack of affordable, secure housing, and, equaly, wages in the orchards basically at a standstill since the 80's. When we first moved here people who worked on orchards and in the meat works could hope to buy their own home ..now a kiwibuild in Marenui was.$385,000 upwards ..and that was last year. .prices around these parts have escalated.
People tend to talk about "housing insecurity" in a slightly detached way, as if its purely a financial problem. I'm not sure they understand the effect on children of a life of feeling "less than" with parents at breaking point, time and time again, looking for yet another house…always on the back foot…
So, whatever, they can ban gang patches ..its not going to stop the problem one little bit…but I guess, out of sight, out of mind for some..
"Bernard Hickey wrote about this in January, suggesting that the Government could actually use this money to build up to 800,000 new homes: “Rent subsidies paid by the central government are forecast to rise from $2.6b last year to $4.2b by 2025. They have already risen from $1.9b over the last four years, Treasury figures show. Just as first home buyers use their rent to calculate how much they could afford to pay in interest, the Government could currently borrow over $400b with that $4.2b of rent subsidies. At $500,000 per dwelling, that $400b would ‘buy’ 800,000 new homes, which would be half the current housing stock of the entire country”
An excellent piece that highlights how woeful the Governments action (?) on state housing is (and has been)….why is the Government not ramping up its ability to directly build the housing needed or, if incapable ,at the very least directly contracting to the private sector a construction programme significantly larger than current?
Yeah the rental subsidy has been out of control for a while.The government could build or subsidise young people to build a heck of a lot of assets with it. Personally I think in some of the smaller districts they could add up the amounts paid – work out how much to build to collapse the rental market and then move outwards in ever widening crcles.
I think its a rort and I can only assume that the government, regardless of hue is complicit. Surely they must see what other see or are they so naive?
Journalists who had tried to verify the original story were angered by the stunt and hit back at the company, saying it was not a joke but “deception”.
Why do we need to tax the rental income of landlords? Why not make residential rental income rent free?
I know that today is April 1st, but the above comment is not made in the spirit of April Fools Day.
Owner-occupiers do not pay tax on the income imputed to them by dint of their living in their own homes. This income is essentially the rent that they save from doing so.
Landlords probably pass the tax on as part of the rent, so it just represents an additional burden on tenants, and is probably a form of 'double taxation' (a situation where two lots of tax are paid on the same income tranche).
It would also put to bed all the arguments flying about over the removal of interest deductibility.
I don't think a automobile is deemed to be an investment. I suppose one has to draw the line somewhere between what are considered investments, and what are considered consumption. Houses for some reason are considered investments. I suppose it’s because they are eminently rentable.
Every time someone brings up this objection – and you are by no means the first – I'm left wondering at the dishonesty of omitting that TOP explicitly covered this off by giving people the option of deferring the CCT until either the property was sold or passed on in an estate. Effectively converting it into a standard CGT or an Estate Tax. But either way they got to live in their home during their lifetime without a hit to their cash flow.
I've forgotten how many times I've typed that out now. Please don't make me do it again.
"did not account for people on lowish fixed incomes – they'd've been obliged to sell"
Quite. And they are most likely to be retired people who over their lifetime have had relatively limited financial resources and acquired only one home, which, when it went onto the market, would most likely be bought by someone with several.
Landlords cannot operate like the IRD taxing a tenants rent.
They don't actually tax tenants' rent. But I would assume that they tailor the rent that they charge so that it takes into account the amount of tax that they themselves are paying on that rent.
The first rule in business is to watch the cash flow.
Any increase in costs, such as this new tax, must be managed, either the profit is reduced, costs are reduced elsewhere or the price is raised – or some combination of both. What cannot happen is that the cash operating profit goes negative. In that case the shareholder must either add funds, or the business is insolvent.
This new tax will likely take some unknown fraction of landlords into negative cash flow territory. I know that it's taken us very close to it, and our mortgage is relatively low compared to what it used to be. If this had happened to us ten years ago we would have fallen over almost for certain.
Yeah but many landlords charge rent completely unrelated to their costs i.e. market rent.
My mother on NZS has just had her rent put up another $30-00 a week on the mortgage free unit because the "market" says so. Also landlords aren't business people in most senses of the word. They don't even get when the government puts subsidies up by $30-00 that it is a 70 cent in the dollar subsidy. So the $30-00 rent increase means at best the person gets only $21-00 and is now $9-00 poorer. Business people they are not. You might be but many are not – for a large number the relationship between cost and rent isn't that existent.
There are many….whether they are implemented however is a different question.
Consider….an investor buys a property 20 years ago with a 20% deposit and a $100k mortgage over 25 years…the mortgage outgoings including principal payment at current interest rates equate to around $100 pw…there are additional costs associated but they remain deductable,
What is the current market rent for that property?
A friend of mine owns 20 rental properties – she had 22 but assisted her tenants to buy them. She paid the mortgages off years ago and charges rents that are affordable and reasonable.
Market rent is like CEO's salaries – once they start going up the market says they have to keep going up. They become self-perpetuating. They then push the price up as the capital gain starts outweighing the actual value and we end up in a viscous cycle with the working class as pawns in the capitalist game.
I partly blame Christchurch where profiteering after the earthquake massively increased rents and emboldened rampant capitalism. That is when a rent freeze should have gone on.
It was happening long before the ChCh quakes….the rent rort post quakes in ChCh was driven by insurance money….it increased the ability to pay.
Disaster capitalism
There are several ways to do this. What I think you're going for is to take the costs and add a margin. But then every owner will have different costs based on their mortgage, and it would lead to odd outcomes – if for example the owner came into an inheritance or windfall and used it to pay down their borrowings, thus reducing their costs – would you argue for the rent to fall at the same time? Or if the same house was then sold to a new owner with a much larger mortgage – should the rent immediately rise to match?
That's not how virtually any business works.
What actually happens I think is that the 'market price' is set by the vendor with the highest marginal cost. It's a bit like the electricity market in this respect – total supply must always equal total demand – and during peak periods when the most expensive generator comes online (because it has to) then everyone else is paid the same price that this generator charges.
The residential rental market isn't quite so rigidly organised like this, plenty of landlords actually charge well below 'market'. The data that the Ministry of Housing publishes is only for new bonds, it doesn't track older established ones at all – which as a rule are lower than for new tenancies.
The other way to look at this is to consider what would happen if the owner simply sold the property and put the cash into a bank deposit. This would be considered the 'Minimum Risk Rate of Return", which by convention is set at 3%. So if we took your 20 yr old property that is probably now worth north of $750,000 that would equate to around $22kpa return before tax. If you're going to go to the hassle and risk of renting the house to someone you'd certainly want to do better than this. Consider that your fixed costs – rates, insurance, R&M, new compliance rules, and management fees etc – are going to be at least another $10kpa, this means you need a rental income of around $32kpa just to do better than putting the money in the bank. That's a rent in the order of $620pw.
This is pretty easy to work out for the property you live in, just go to qv.co.nz and enter your own address. Then do the numbers for yourself – it should give you a sense of what your minimum rent should be if your landlord was being economically rational.
And the investor that bought the property for 120K 20 years ago may well decide that original 20K investment that is now worth say 750K today is better off in a TD or somewhere else…thats for him or her to decide…the point is IF the investor has not increased his/her leverage the pressure to increase rents does not exist…..it is a choice.
Nope – you need to have a bit more of a think about it. What would happen if the market consisted of just two rentals – an old one with no mortgage that had fixed costs only say $200pw or a new one with borrowings that had a cost of $600pw? And each landlord charged enough just to cover these costs only?
And now consider there are only two tenants who can choose between them. Assume both houses are of similar desirability for the sake of the argument. Which one would they both want? The cheap one at $200pw of course. But only one can live in it, forcing the other to pay $600pw to live in the other one. Well the landlord charging only $200pw might be content with this situation, but what happens when demand increases and a third new tenant appears in this market?
Of course none of this addresses the current problems in the NZ housing market that go well beyond the dynamics of the rental market, which has existed since the year dot.
a lot of mental gymnastics going on there to attempt to refute the fact the original landlord has a choice….and none of it changes the fact he/she does.
So the original landlord charging only $200pw retires and decides to sell to a new operator? One with a much larger mortgage.
The point is that you're essentially relying on the willingness of this person to leave $400pw on the table indefinitely. You may well have an opinion on the morality of this, but I think you can see that in the context of a real world market – it's just not a stable scenario.
The willingness or not of the investor to set their rent at whatever will depend on multiple factors…one being the quality of the tenant…it is financially advantageous to the investor to have a reliable trouble free tenant who may be able to afford a lesser amount than to risk a series of unsuitable tenants and vacancy periods….real world enough for you?
I know investors who operate on this basis and have done for years…a good long term tenant is worth their weight in gold.
But all of that aside the original comment was regarding landlords passing on the tax changes to tenants and my comment pointed out that there is no need for many investors to pass on costs as the carry little or no leverage, and have no financial pressure to do so…..and as stated previously, those that are excessively leveraged and operating a marginal investment have the option to rebalance or exit …..non viable businesses are wound up all the time.
If two farmers are producing the same crop, but one due to having some competitive advantage – better rainfall or management methods for example – has a lower cost of production, and demand equals or exceeds supply, do you think this farmer will sell at a lower cost than his neighbour? Of course not – that farmer sells at the same price and uses their competitive advantage to make a higher profit.
This is how all businesses work, why do you think residential rentals must be an exception?
The most important factors in determining the level of rent is:
– Size of mortgage to service
– Number of bedrooms
– Location
Quality of the tenant might help in terms of future rent increases, a little. I have one house which we haven't increased for three years because they are solid and there's zero debt on it.
There's two others, only one of which has a mortgage and it's small – we do review that annually.
Agree with you about the very marginal investors. They will now get out, or their banks will tell them hard to sell one or two and bring their position down, or the next time they go to their bank for a rollover they are going to get a reality check. That's a desired outcome from government policy.
@Ad..yes dont disagree with factors setting rent but for some reason RL wants to debate a self evident truth regarding financial pressure on low or zero leveraged investors.
And yes banks will be having some uncomfortable conversations.
my comment pointed out that there is no need for many investors to pass on costs as the carry little or no leverage, and have no financial pressure to do so
For any given net profit the landlord's tax payment will always appear in the rent that he charges, for example (for a net profit of $100 pw there are two ways that this can come about:
(a) At a tax rate of 33% the landlord will need to add $150 to his outgoings in setting the rent, or
(b) At a tax rate of zero he will need to add only $100 to his outgoings.
Actually there are more than two when one takes into account the fact that different landlords may be on different tax rates.
Simplistic…in fact there are numerous determinants in crop sales and the price is seldom the same for all sellers or even for the same seller across the entire crop….and one critical factor is the relationship.
But obviously its important to you for some reason to convince yourself that all investors behave the same way when patently they dont and as said originally the investor has choice….or do wish to continue to deny that fact?
And as an after thought what happens to the dairy farmer whose cost of production exceeds the MS price?
Buyers don't care or even know about the cost structure of the producer. If two truckloads of turnips from two different farmers turn up at the produce market – then all other things being equal – they will sell at the same price. What actually sets the price on the day is the balance of supply and demand.
Introducing other factors is irrelevant to the argument here.
And as an after thought what happens to the dairy farmer whose cost of production exceeds the MS price?
Either they find a way to reduce their costs or they go out of business. Tough on that farmer but good for the economy as a whole because it tends to drive toward better productivity over time.
what happens to dairy farmers who's costs exceed the MS price is an unwelcome visit from the bank….much the same will be occurring with many investors who are over-leveraged.
Great so what you've finally concluded – which is what I said days ago – is that as over-leveraged landlords exit the market the supply of rentals will go down. At a time when there is already a shortage of rentals this is only likely to put upward pressure on rents.
The argument that ex-rentals automatically become first homes is flawed because it assumes that ex-tenants are all going to become first home buyers just because they want to. What happens in reality is a lot more messy than this.
Aye but you're arguing that the market rent by necessity must be $600-00 per week because the most leveraged "investor" determines he market price. In you scenario both tenants would pay $600-00.
"Well the landlord charging only $200pw might be content with this situation, but what happens when demand increases and a third new tenant appears in this market?"
The landlord charging $200-00 might be even happier because they know that they are providing good support to someone even though demand has increased.
The rate of return argument is financial trickery to justify such financial rorting. It also becomes self perpetuating as values increase – I must charge this much because I could otherwise do this. The classic paradigm of knowing the price of something but the value of nothing.
It's nonsense pretending their is a strong relationship between rental income and cost. The fact that so many properties are actually untenanted – if the relationship was as strong as you suggest then you would not be rational to have a property untenanted. Plenty of landlords are content to have this occur.
Market rents like much of economics is filling an emotional response by landlords. It is nice couching economics in notions of rational players but that notion is a pretence.
The landlord charging $200-00 might be even happier because they know that they are providing good support to someone even though demand has increased.
This indeed is the position we are in. If I was to achieve the same return from my rents as selling up and putting the money into a 3% TD, I would have to increase them all across the board by $160pw.
Sustaining this position is a choice. Up until now I've been reasonably happy to accept a relatively modest cash operating profit because I could anticipate doing better once the mortgage was paid down. Plus indeed we did see it as a social good.
Well both of those conditions are now off the table, this govt has now added a new tax that reduces our cash operating flow to zero and has openly told us that what we are doing is no longer considered of any social benefit.
So either we increase the rent or do something else. Probably the latter.
I'm by no means a big financy guy, but it seems to me and rando calculator site that a landlord owning a $120k house that is now $750k after 20 years that the landlord already has a calculated return of 9% per annum.
Sure, let's say the saint will never sell. Sunk cost is $120k (plus interest on the mortgage that is now paid off), with ongoing rates and maybe a margin for projected maintenance (piles, drains, etc). That's if they're people who are genuinely providing a public service with no thought of profit, just the costs being covered. Not that private ownership is necessarily the best model for that, I'd suggest a trust or charity as an instrument for community rent provision.
But none of that has anything to do with market rates. That's a function of supply and demand. Housing shortage, so it's down to how much individuals can afford to pay before they're living rough.
Many landlords will be somewhere between those two extremes. Some might well be practically a housing service. #notAllLandlords is the problem with that charitable view, though.
Persisting in pretending there is no difference between cash flow and capital gain really disqualifies you from any honest participation in this conversation.
As for your idea that the market can run purely on a not-for-profit charity model, runs afoul of the fact that sooner or later those charities will have to renew their stock, and find the funds to do this. In the long run they have to operate commercially on pretty much the same basis as private operators do.
And then most private operators make relatively low cash operating profit, the difference between them and a ‘not for profit’ charity amounts to sfa.
You're the one saying the current capital value has anything to do with cashflow on a house bought 20 years ago.
If someone buys a house as a public service, the only costs are the costs of purchase (incl mortgage) and ongoing costs like rates and maintenance. And they don't have to "renew their stock" if they maintain the house.
Houses in NZ have about an 80yr economic life. This means that roughly 1.25% of them must be replaced every year just to keep pace with existing stock, much less meet a growing population. In my lifetime NZ has roughly doubled it's population.
And just about anything older than 50yrs no longer meets modern expectations, and needs substantial investment.
So in reality your 'housing charity' has to keep either replacing or adding to it's stock – at current market prices – in order to stay in the game. And it cannot do this on fresh air.
Many years back we were involved in Habitat for Humanity in the Wgtn area, essentially the kind of housing charity you have in mind. Once we got involved at the board level we had to be schooled in this lesson the hard way.
And then most private operators make relatively low cash operating profit, the difference between them and a ‘not for profit’ charity amounts to sfa.
"At Habitat for Humanity Australia, we believe in helping low-income families achieve the dream of building and owning their own home."
"To date Habitat for Humanity Australia has built more than 160 homes in New South Wales, Victoria, South Australia, Queensland."
Habitat for Humanity and land Lords – not so different?
In reality just about anything older than 50yrs no longer meets modern expectations.
My (one and only) home is ~60 years old; it may not meet modern expectations but it (still) meets mine, and I’ve never had a complaint from occasional visitors.
So we have an arc in capital value that a well-maintained house goes from 120k to 750k @20 years to $0 at 50 years? I mean, bollocks, but even if it were true you could find that fiscal sweet spot.
Because they don't need to create a house from thin air, if the objective is to not lose money they can sell the old one and buy a new one using the increased capital value. And a landlord renewing their stock is renewing their capital assets.
But of course any landlord would be lucky to be in the business for 50 years, anyway – one reason to go to a longer term structure than personal ownership.
Well like McFlock when we first started with H4H we too thought like he did, but it turned out we were quite wrong. A couple of older and more experienced members had to be quite sharp with us over it.
And H4H is not even a rental charity. That would be closer to the Masterton Community Trust model, and even that very well established entity charges rents that are not all that much lower than the private market in the same town. Certainly they don't hold their rents static for 20 years as McFlock would have them do.
There are several ways to do this. What I think you're going for is to take the costs and add a margin. But then every owner will have different costs based on their mortgage, and it would lead to odd outcomes – if for example the owner came into an inheritance or windfall and used it to pay down their borrowings, thus reducing their costs – would you argue for the rent to fall at the same time? Or if the same house was then sold to a new owner with a much larger mortgage – should the rent immediately rise to match?
Differing tax rates also come into it. A landlord on a 17.5% tax rate can afford to charge a lower rent and still make the same net profit as a landlord on a 33% rate
“It’s a bit like the electricity market in this respect – total supply must always equal total demand – and during peak periods when the most expensive generator comes online (because it has to) then everyone else is paid the same price that this generator charges.”
This is why the Labour Party's single seller proposal, of earlier years, may have been a good idea. At peak times electricity could be sold, by a single seller, at an average price. A 'single seller' arrangement, however, would obviously not be appropriate in the residential rental market; mortgages, and landlords' tax rates (as pointed out above), would be disorienting factors. This is why mortgages and differential tax rates should not be factors in determining rents. Fairly stable, and equal (after factoring in differences in the quality of the dwelling) rents would seem to be desirable.
Influences due to differences in tax rates could be avoided if the same tax rate was applied to all rental income – I would suggest 0% ), but I think the influence of mortgage payments could only be avoided by removing them from rent determinations altogether. this latter suggestion would make sense since mortgages should be the landlords' responsibility in any case.
PS: If there was a CGT in place the fact that mortgages, including their interest component, are capital expenditure would suggest that the aggregate unclaimed interest might be considered deductible against a capital gain.
This is practice in a few US States, though it seems to be widely seen as an un-natural tax distortion there and is understood to have elevated house prices.
In considering this I think too much emphasis can easily be put on the differentials and incentives (between occupiers and investors or between landlord renter) and not enough on how much borrowing can be accrued against housing which appears more important to pricing.
The problem is that councils now reclaim all of the cost of supplying services to new sections in the first year not over a 30-50 year span from rates as used to be the case. The 4 billion spend announced last week was specifically to negate this practice for goverment builds.
Reminds me of the Jewish theme of the song 'If I Was a Rich Man' of what he would do. One who lives the ethical life, with little indulgences!
'Dear God, you made many, many poor people.
I realize, of course, that it's no shame to be poor.
But it's no great honor either!
So, what would have been so terrible if I had a small fortune?'
If I were a rich man,…
And then –
I'd build a big tall house with rooms by the dozen,
Right in the middle of the town.
A fine tin roof with real wooden floors below.
There would be one long staircase just going up,
And one even longer coming down,
And one more leading nowhere, just for show.
I'd fill my yard with chicks and turkeys and geese and ducks
For the town to see and hear.
And each loud 'cheep' and 'swaqwk' and 'honk' and 'quack'
Would land like a trumpet on the ear,
As if to say 'Here lives a wealthy man.'
But then –
The most important men in town would come to fawn on me!
They would ask me to advise them,
Like a Solomon the Wise.
'If you please, Reb Tevye…'
'Pardon me, Reb Tevye…'
Posing problems that would cross a rabbi's eyes!
And it won't make one bit of difference if i answer right or wrong.
When you're rich, they think you really know!
Only took 38 years to come up with the award. The song, and it was a great one, dates from 1983.
It is almost as bad as the Nobel Prize is getting. The 2013 Physics Prize, was awarded for work on the Higgs mechanism. The theoretical work had been done in 1964, half a century earlier.
The withering of anti-trust laws which allowed for the rise of behemoth companies started in the 1970s, MacGillis says, and then really intensified in the 1980s with Ronald Reagan.
“We’re now still experiencing that very lax approach to anti-trust which has helped abet the growth of these giants. To put it crudely, all sorts of business activity which used to be spread around the country in various sectors of the economy is now increasingly dominated by a handful of companies and that commerce, activity, and wealth is sucked into the places where they reside.”
And what about someone touting for a Silicon Valley here? It will cause as much problem as silicone breast implants did – look good to begin with and then the effects start body deterioration. Has this bloke got eye augmentation?
Years ago, on April 1 the ODT had two front page articles that to me seemed equally farcical. It turned out that the monorail from Otago to fiordland was a real proposal.
Thought I'd submitted my appreciative comment (@4:39 pm) to the post: National Party leadership spill under way post (Categories: humour), but must have put it somewhere else by mistake – apologies.
Must be awful to lose one’s sense of humour; worse than losing the sense of smell imho
I've been listening to the musical Chess, The writers have done a clever piece about the Russian applying for asylum to smug Brit embassy immigration johnnies.
Embassy Lament
Oh my dear how boring
He's defecting
Just like all the others
He's expecting
Us to be impressed with what he's done here
But he hasn't stopped to think about the paperwork his gesture causes…
Have you an appointment
With the consul?
If you don't we know what his response'll
Be, he will not see you, with respect it
Buggers up his very taxing schedule…
I know. I was pointing out that as long as the make a net profit, that the tax on that profit gets transferred to the tenant as part of his rent, regardless of the lack of pressure.
I ran across a recent essay from The Brothers Krynn, which attempts to map common horror monsters onto the Seven Deadly Sins: https://canadianculturecorner.substack.com/p/horror-monsters-and-vice My interest, however, is not in the meat of the piece, but rather the opening paragraph: It is an interesting fact that in recent decades, Vampires have ...
Buzz from the Beehive Transport Minister Simeon Brown dutifully issued advice to all road users to keep safe on our roads during the Easter weekend. He encouraged them to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. ...
Oliver Hartwich writes – New Zealanders recently learned about a new feature film. It will be about former Prime Minister Jacinda Ardern – and taxpayers will subsidise it to the tune of NZ$800,000. Ardern had nothing personally to do with either the film or the subsidy. But her government’s ...
TL;DR: Here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above that was recorded yesterday afternoon above between and The Kākā’s climate correspondent : An independent review panel into the emergency response to Cyclone Gabrielle in Hawkes Bayconcluded “that ...
There are now only a few days left to give feedback on the Draft Government Policy Statement (GPS) on Land Transport 2024-34 (see our earlier post this week on GPS submission guides). As we’ve reported, the GPS is a disaster for Local Government, so we were particularly interested to hear ...
Willis has pledged to go ahead with the debt-funded tax cuts, despite growing opposition from her own supporters worried about appearing fiscally irresponsible. Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s political economy that we wrote and spoke about via The Kākā and elsewhere for ...
Open access notables A survey of interventions to actively conserve the frozen North, van Wijngaarden et al., Climatic Change:The frozen elements of the high North are thawing as the region warms much faster than the global mean. The dangers of sea level rise due to melting glacier ice, increased ...
Bryce Edwards writes – New Zealand’s biggest-ever political donations scandal is finally at an end. But what is the conclusion? No one can really be sure. The Court of Appeal released its judgement on Tuesday about the Serious Fraud Office case against the NZ First Foundation. On ...
In 2015, then-Prime Minister John Key announced plans for a huge ocean sanctuary around the Kermadec Islands, banning fishing and mining from 15% of Aotearoa's EEZ. It was bold, it was ambitious, and it suggested that National might actually care about the environment. Except they fucked it up: Key failed ...
1. Who has just been given the accolade New Zealander of the Year?a. The Kokakob. The Cook Strait Ferryc. Fair God. Dr Jim Salinger 2. Which of these is an affront to decent society?a. Dame Edna Everageb. Mrs Doubtfire c. Dr. Frank-N-Furterd. Brian 3. Who is Penny Simmonds?a. The aspiring actress in Big ...
New Zealand’s biggest-ever political donations scandal is finally at an end. But what is the conclusion? No one can really be sure.The Court of Appeal released its judgement on Tuesday about the Serious Fraud Office case against the NZ First Foundation. On the face of it, the court found ...
Buzz from the Beehive Waves of rain are set to lash much of the North Island during Easter Weekend as a low-pressure system forms east of New Zealand, according to a weather forecast published in the past day or so. Niwa was warning of a “moisture-laden” long weekend, with rain expected ...
Look around us…Nicola Willis’ promises of balancing the books, of cutting spending without reducing services, and of delivering game changing tax cuts are disappearing before her eyes.Everyday we see stories of violent crime ending in horrific injuries, or worse. The cost of living worsens, whereas the PM claimed renters would ...
TL;DR: My top six news of note on the morning of Thursday, March 28 include:The Government will have to borrow between $10 billion to $15 billion more than previously expected in order to make up for a slowing economy and to pay for $14.9 billion of tax cuts, according to ...
This story by Naveena Sadasivam and Kate Yoder was originally published by Grist and is part of Covering Climate Now, a global journalism collaboration strengthening coverage of the climate story. The long-awaited jobs board for the American Climate Corps, promised early in the Biden administration, will open next month, according to details shared exclusively ...
Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don’t think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of ...
Treasury’s first report on the economy since the change of government presents a damning indictment of Labour’s economic management. The problem for National is that it is so damning that logically, coupled with a rapidly slowing economy, Finance Minister Nicola Willis should respond to it by postponing or even cancelling ...
Budget tensions are becoming evident within the Coalition Government. Winston Peters made numerous political points in his speech to the NZF annual conference. But the attack on his own government’s fiscal policies raised issues of substance. ‘Today in the Sunday Star Times, journalist and former advisor to the Labour ...
Buzz from the Beehive The media – sure enough – have been binging on Finance Minister Nicola Willis’ release of the Budget Policy Statement and a statement headed Government announces Budget priorities This assures us – or rather, this parrots the Luxon team mantra – that the Budget “will deliver ...
The Ides of March brought me COVID followed by a bereavement. No wonder they tell you to be careful of them.I’m home now and have resumed the interrupted recuperation. Very much looking forward to getting back to regular things. Meanwhile, some thoughts…OneThis new Prime Minister guy just keeps getting more dire. ...
News that the Chinese ATP 40 cyber-hacking unit penetrated parliamentary internet networks in 2021 has renewed concerns about the PRC’s malign intentions in Aotearoa. But is the hack that significant given the length of time that has passed since its … Continue reading → ...
When Parliament passed the Intelligence and security Act in 2017, they assured us all that it was full of safeguards. Any intrusive surveillance of New Zealanders would be subject to a "triple lock", requiring the approval of the Minister and (supposedly independent) Commissioner of Intelligence Warrants, as well as post-facto ...
Eric Crampton writes – Richard Harman’s Politik newsletter provides a bit of the context that ought to have been showing up in other media reports on potential reductions in public service staffing. Media has been reporting on staffing cuts on the order of about 7%. Is that ...
Mike Grimshaw writes – It’s becoming increasingly apparent that many perceive free speech to have become the preserve of the politically right wing, the religiously conservative, the libertarian fringe, the anti-trans, the anti-Māori and…. well, just fill in with whatever groups or individuals you don’t like and don’t ...
Don Brash writes – As everybody who is not blind and deaf is aware, there is a huge political preoccupation with climate change at the moment, a widespread (though by no means unanimous) belief that global temperatures are rising mainly as a result of the greenhouse gases created ...
TL;DR: My six things to note in Aotearoa’s political economy on Wednesday, March 27 include:Chris Bishop laid out his vision for filling Aotearoa-NZ’s $100 billion infrastructure deficit in a speech yesterday, emphasising user pays and private funding, but failed to say how to achieve bipartisanship on population, public borrowing and ...
Bryce Edwards writes – Former Finance Minister Grant Robertson and former Prime Minister Chris Hipkins have been conveying how unhappy they are with the tax system. Last week in his valedictory speech, Robertson called for the introduction of a wealth or capital gains tax. And this week Hipkins ...
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 ...
Buzz from the Beehive China has loomed large in Beehive considerations over the past 24 hours, largely because of that country’s mischief-making in the cyber espionage department. Two media statements emerged on that subject hard on the heels of the PM baulking at questions put to him on RNZ’s Morning ...
Chris Trotter writes – WHY IS THE NATIONAL PARTY doing so much for landlords, property developers, trucking, and construction companies, and so little for everybody who isn’t already pretty well-off? It’s as if protecting landlords’ investments and building apartments and roads now constitute the whole of National’s ...
Bryce Edwards writes – When she was campaigning to be Minister of Finance last year, Nicola Willis pledged that she would resign from the job if she failed to deliver tax cuts in her first Budget. Now, it’s that pledge, along with Prime Minister Christopher Luxon’s ...
Robert MacCulloch writes – The Reserve Bank has doubled staff numbers in five years to 510, with personnel costs rising to $80 million in 2023 from $32 million in 2018 – up by a whopping 150%. I guess when you print $50 billion and flood markets with liquidity, ...
The furore. In case you didn’t notice there was a controversy in the weekend involving dolphins in a little town off the South Island. Don’t panic, they haven’t declared independence and resumed whaling, this was simply a sailing event.The problem began when racing was cancelled on the opening day of ...
For 20 years or more, the case for a meaningful capital tax gains has been mulled over and analysed to death, including by the tax working group chaired by Sir Michael Cullen. More than once, the International Monetary Fund has said a CGT would be a good idea for New ...
TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: The Public Health Communications Centre (PHCC) call for urgent preventive action and a risk assessment survey of long covid in this briefing noteLocal scoop: NZ road deaths surpass OECD rates, so why is the govt reversing safety plans? ...
This story was originally published by Grist and is part of Covering Climate Now, a global journalism collaboration strengthening coverage of the climate story. This story is part of a collaboration with Grist and WABE to demystify the Georgia Public Service Commission, the small but powerful state-elected board that makes critical decisions about everything from raising ...
This is a guest post from Robert McLachlan Global warming is accelerating; 2023 was off the charts. We need to stop burning fossil fuels. In New Zealand, transport accounts for half of all fossil fuels burnt. In the Emissions Reduction Plan, transport emissions fall 41% by 2035. As the ...
Labour productivity has been receding rapidly over the past two years, reversing a post-lockdown rise. Photo: Lynn Grieveson / The KākāTL;DR: My six things to note in Aotearoa’s political economy as at 6:26am on Tuesday, March 26 include:Workers have been treading water in output per hour worked for 12 years, ...
TL;DR: The key events to watch in Aotearoa-NZ’s political economy in the week to April 2 include:Today, Parliament resumes sitting at 2pm for the second week of a two-week session. Officials for SIS and GCSB report their annual reviews in public to the Intelligence and Security Select Committee from 5.10pm.Tomorrow, ...
Faced with a barrage of criticism over the promised tax cuts from usually supportive commentators, Finance Minister Nicola Willis yesterday reaffirmed her intention to include them in this year’s Budget. The Government is up against it over the cuts just about every way it turns. Commentators like Fran O’Sullivan, Matthew ...
Here’s my pick of today’s substack posts as of 6:26pm on Monday, March 25: writes via his substack that Market-rate housing will make your city cheaper writes via his substack about the problems talking to double-cab ute (truck) drivers about their vehicles. today about moments of radicalisation in ...
Buzz from the Beehive Just before Christmas, Finance Minister Nicola Willis delivered something that was pitched as a mini-budget and brayed about the decisive action being taken to repair the Government books and support income tax relief in Budget 2024. In a statement headed Fiscal repair job underway. she introduced ...
My sister Belinda asked Dad yesterday what one word would describe Mum best. He said: vivacious.If you only knew her from the photos on the slideshow we've made for today,you might wonder about that, because the camera tended to lie with Mum.If ever she saw a camera pointed at her, she ...
There are two major public consultations closing in the next week, Auckland Council’s Long Term Plan (LTP), and the draft Government Policy Statement on Land Transport (GPS). Closing dates and times: LTP closes Thursday 28 February, at 11.59pm – a minute to midnight! GPS closes Tuesday 2 April, at 12pm noon – note that’s ...
From Kiwiblog’s David Farrar – Bryce Wilkinson writes: Senior Fellow Bryce Wilkinson’s analysis reveals that since March 2009, New Zealand has spent $158 billion more overseas than it has earned, but its NIIP has only fallen by $32 billion.Statistics New Zealand shows that receipts from overseas reinsurers have ...
Is she hinting that the Coalition Government will have to back down on key promises it made in Opposition? Brian Easton writes – The Minister of Finance, Nicola Willis, is telling an evolving story about her fiscal challenges. In Opposition she was confident that she could ...
Dear Nicola Willis,Right now you’ve probably got lots of competing demands coming at you. Ministers who’ve inherited quite a mess, or so you’ve told us, looking for money in the budget to improve things. I imagine that’s why they came to parliament - to make things better.You’ll have to make ...
The Local Government, Transport and Auckland Minister hasthreatened councils with intervention if they don’t merge water assets to take them off balance sheet, just as the now-repealed Three Waters plan directed. Photo: Lynn Grieveson / The KākāTL;DR: My six things of note this morning for Monday, March 25 include:Simeon ...
A listing of 36 news and opinion articles we found interesting and shared on social media during the past week: Sun, March 17, 2024 thru Sat, March 23, 2024. Story of the week Thanks to John Mason having the stamina to sit down to watch "Climate - the Movie" ...
This morning the Q&A programme had Simeon Brown on to talk about National’s replacement for Three Waters. In case anyone’s forgotten the three are - drinking water, waste water, and sewerage. It’s quite important not to get them mixed up. In much the same way that you wouldn’t want to ...
Today’s newsletter comes with a mini-podcast conversation between me and my buddy Liv Tennet, talking about her time as a child actor in Lord of the Rings. It’s a conversation with a lot of giggles as she talks about falling off a horse, and becoming a meme. Read ...
The Desmog Climate Disinformation Database documents, "individuals and organisations that have helped to delay and distract the public and our elected leaders from taking needed action to reduce greenhouse gas pollution and fight global warming." It's a who's who of the organised climate change denial movement, in other words. In ...
Bob Edlin writes – A High Court judge has decided miscreants who have mana – or who claim to have mana – should be treated differently from miscreants who have none. It’s a ruling that suggests indigenous law-breakers have a better chance of securing a discharge without conviction ...
Welcome to the first, and possibly last, edition of Brickbats, Bouquets and Bull’s Wool. In which I’ll take a look at the events of the last week or so, and rate them.In such ratings the numbers usually have more to do with the opinions of the reviewer, than the actual ...
Roger Partridge writes – My earlier column this month, New Zealand’s highest court could be facing a turning point, prompted a flood of feedback from business readers and lawyers alike. A common query was what Parliament can do to restrain an overreaching judiciary. This week I discuss two steps Parliament ...
TL;DR: In today’s ‘six-stack’ of substacks at 6.16pm on Friday, March 22: writes about New Zealand's Building Boom—And What the World Must Learn From It over at his substack. challenges the Auckland Council’s use of a 3.8 degrees of warming forecast to oppose a wave-park and data centre project ...
Is she hinting that the Coalition Government will have to back down on key promises it made in Opposition?The Minister of Finance, Nicola Willis, is telling an evolving story about her fiscal challenges. In Opposition she was confident that she could deliver her promised income tax cuts. Appointed minister, she ...
Buzz from the Beehive Ministers of the Crown have drawn attention to one sector of the science sector which is unlikely to be subjected to heavy spending cuts, a state-funded broadcaster which is doing nicely, thank you, and a sporting event that had $5.4 million from the public purse puffed ...
Abbott’s Freestyle Libre sensors allow continuous glucose monitoring (CGM). The sensor is applied to the back of the patient’s arm, with a thin filament under the skin measuring glucose levels constantly. But it costs around $100 per sensor and must be replaced once every 14 days. Photo by BSIP/Universal Images ...
The Inspector General of Intelligence and Security (IGIS) recently released a report in which he exposes the existence of a foreign intelligence partner-controlled technological “capability” inside the headquarters of the GCSB, NZ’s 5 Eyes-affiliated signals intelligence collection and analysis agency. … Continue reading → ...
Peter Dunne writes – Nearly three decades after the introduction of MMP and multiparty governments there should be a greater level of understanding about their finer points than often appears to be the case. The reaction to the despicable outburst from the Deputy Prime Minister at the weekend highlights ...
The sweet kisses from fruit of summerHave slowly been turning dullerYou say, "those times"And "remember the daysWhen we went outside and there still was the shade?"Taking no reason into play…Autumn. Clear, blue days shortening to longer nights, growing colder. Aotearoa.That’s us. The temperature dropping, the looming car crash - so ...
Bryce Edwards writes – “It is often said that behind every great man is a great woman”. This is the pitch by the National Party Botany electorate branch to attend their “Ladies Afternoon Tea with Amanda Luxon”. For $110 including GST, you can turn up on Saturday 20 April ...
David Farrar writes – The Electoral Commission has published the expense returns for political parties for the 2023 election. I’ve put them in a table with how many votes a party got so we can see the spend per vote. National only spent $3.34 for every vote they got, almost ...
Winston Peters’ headline-making actions over the past week may have been a show of political power intended to strengthen his hand in Budget negotiations. It was no accident that his State of the Nation speech was as it was. He made it as New Zealand First Leader, not as Deputy ...
Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s political economy that we wrote and spoke about via The Kākā and elsewhere for paying subscribers in the last week included:Former Labour Finance Minister Grant Robertson bowed out of politics this week, giving a series of exit ...
Graham Adams writes — If you love the law or sausages, as the saying goes, best not to look too closely at how they are made. And after watching the orgy of self-pity when Newshub’s closure was announced on February 28, television journalism should definitely be added to the list of those ...
Venerable New Zealand political commentator, Chris Trotter (https://bowalleyroad.blogspot.com/), is a sad creature these days. Once one of the most reliable Leftist writers out there – Economic Left at that – Trotter seems to have absorbed the worldview of Auckland culture-war obsessives. It is not for me to categorise what he ...
The Coalition Government’s plan to ‘get Auckland moving’ is a cuts cover-up that will ultimately cost Aucklanders more to move around the city, says Labour Auckland Issues spokesperson Shanan Halbert. ...
Slashing the Ministry of Pacific Peoples by 40% will have a devastating impact on pacific communities and further highlights how little this government cares about anything other than cutting taxes for the wealthiest few. ...
Labour has proposed an urgent inquiry to investigate the ever-increasing profits of supermarkets, aiming to lower costs for shoppers and food producers alike, says Labour Spokesperson for Commerce and Consumer Affairs Arena Williams and Primary Production Spokesperson Cushla Tangaere-Manuel. ...
With 14% of jobs on the line at the Ministry for Ethnic Communities, the responsible Minister Melissa Lee is failing to stand up for the very communities she’s meant to be representing. ...
COURT OF APPEAL: TRIFECTA OF VICTORY FOR NZ FIRST, TRIFECTA OF FAILURE FOR OPPONENTS For the third time since April 2020, New Zealand First has defeated the Serious Fraud Office and all those complicit in a malicious attack against a political party going about its lawful business in a lawful ...
The Green Party stands with people who live in public housing, people in dire housing need, experts and advocates in demanding better than the Government’s archaic approach to housing those who need our support the most. ...
New Zealand has recently lost the hosting rights of some major international sporting events including the America’s Cup, the Rugby Championship, Netball World Cup, and the Wellington Sevens. We are now at a huge risk of losing SailGP as well. And it won’t stop there. The recent issues with SailGP ...
A Member’s Bill drawn this week would modernise insurance law and make things fairer and more transparent for consumers, Christchurch Central MP Duncan Webb said. ...
The Minister for Disability Issues has confirmed she was aware of funding issues in mid-December and did nothing to stop it. On 14 March, she signed off on changes that were announced and implemented on 18 March without any consultation with disability communities. ...
Green Party MP Julie Anne Genter says her members' bill is an opportunity for the coalition government to plug the gap in electric vehicle incentives. ...
The National Government continues to talk about irresponsible tax cuts that will only drive up inflation, despite the country entering a technical recession. ...
The Minister for Disability Issues must act urgently to reinstate flexibility around the funding for disability support and apologise to disabled carers. ...
This story has been initiated by a leftie shill reporter who proactively sought to call a member of a former band, which disbanded twelve years ago, give their biased appraisal of what was said in my speech, and concocted a ham-fisted attempt at a story that does nothing but show ...
The Government has accepted Labour’s change to the Road User Charge (RUC) discount for hybrid vehicles, meaning there will still be some incentive for people to buy greener vehicles. ...
Many in the mainstream media have taken what was said in New Zealand First’s State of the Nation Speech in Palmerston North on Sunday and deliberately, deceitfully, and ignorantly misrepresented what I said and why I said it. The headlines and commentary on the news stated that I compared ‘co-governance ...
Kicking the most vulnerable people out of state housing and pushing them towards homelessness will result in a proliferation of poverty and trauma across our most vulnerable communities. ...
Te Pāti Māori co-leader and MP for Waiariki, Rawiri Waititi has penned a letter asking MPs to support his members bill to remove GST from all food. The bill is expected to go through its first reading in parliament this Wednesday. “I’m calling on all political parties to support my ...
Good afternoon. Thank you for, in your very busy lives, turning up to this meeting today. On October 14th last year New Zealanders overwhelmingly voted for change. That is exactly what this new government is bringing. New Zealand First campaigned to ‘take back our country’ and stop the disastrous economic ...
This year is about getting real with Kiwis and discussing the tough issues, as the National Government exacerbates inequality and divides New Zealand, Labour Leader Chris Hipkins said ...
The Government adding Significant Natural Areas (SNAs) to its already roaring environmental policy bonfire is an assault on the future of wildlife that makes Aotearoa unique. ...
After 12 years of fighting to protect our moana we are finding ourselves back at square one and back at court. Today, the Environmental Protection Agency is sitting in Hawera to reconsider an application from Trans-Tasman Resources to dig up 50 million tonnes of the seabed in South Taranaki. This ...
Minister Shane Jones’ decision to step away from a seabed mining project is evidence of the murky waters surrounding the Government’s fast-track legislation. ...
The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last government in a bid to get greater coherence in the publicservice on Treaty matters. When ministers first considered the need for tighter oversight in 2021, there ...
The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last government in a bid to get greater coherence in the publicservice on Treaty matters. When ministers first considered the need for tighter oversight in 2021, there ...
The Coalition Government’s miscalculation saga continues as it has forgotten an eyewatering $90 million gap in its interest deductibility cost figures, say Labour Finance spokesperson Barbara Edmonds and Revenue Spokesperson Deborah Russell. ...
He Pou a Rangi Climate Change Commission has today released advice that says if the Government doesn’t act now New Zealand is at risk of not meeting its climate goals. ...
The Coalition Government has today confirmed it is abandoning first home buyers who are struggling to get ahead, says Labour Finance spokesperson Barbara Edmonds. ...
Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April. “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates. Carl Hansen, the executive director of Capital ...
Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend. “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says. Mr Peters will attend the NATO Foreign ...
Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track. “Dam safety regulations ...
The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis. “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says. The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says. “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says. “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009. ...
The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function. The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union. “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says. “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says. “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
Good morning, it’s great to be here. First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning. I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed. “Northland has faced a number ...
New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
COMMENTARY:By Ronny Kareni Since the atrocious footage of the suffering of an indigenous Papuan man reverberates in the heart of Puncak by the brute force of Indonesia’s army in early February, shocking tactics deployed by those in power to silence critics has been unfolding. Nowhere is this more evident ...
Analysis - Nicola Willis is holding firm on tax cuts despite the economic outlook being worse than forecast and critics urging her to wait, writes Peter Wilson for The Week In Politics. ...
Opposition MPs and unions are criticising a proposal by New Zealand’s Ministry of Pacific Peoples to cut staff by 40 percent. The country’s largest trade union — The Public Service Association — says the ministry has informed staff that it is looking to shed 63 of 156 positions. Opposition MPs ...
A poem by Poetry Aotearoa Yearbook 2024 featured poet Carin Smeaton. Daughtr of the 90s when she gets promoted to usherette a baby blu eel carries her all the way up to mothership she’s hovering high she lets the underaged in to see keanu reeves she lets the only lonely ...
Analysis by Keith Rankin. Keith Rankin, trained as an economic historian, is a retired lecturer in Economics and Statistics. He lives in Auckland, New Zealand. My earlier article – Can ‘Good’ be the Greater Evil? – looked at the issue of how wars should end, and how Good versus Evil ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1 AMMA by Saraid de Silva (Moa Press, $38)A stunning debut novel reviewed by Brannavan ...
From Steve Martin to Ricky Stanicky, a pick’n’mix of things worth watching and listening to this long weekend. This is an excerpt from our weekly pop culture newsletter Rec Room. Sign up here. If you’re at a loss for something to occupy yourself with this Easter, don’t panic: The Spinoff’s got ...
Jesus had dinner with his 12 disciples right before he died. Noted historian Madeleine Chapman finds out who really deserved to be there.First published in 2018 but let’s be honest, the subject is timeless. As you sit on your couch this Easter Sunday, eating a chocolate egg you know ...
The newly-promoted Northern League club is on a mission to return to the National League for the first time in two decades. Plenty about domestic football in New Zealand has changed in that time – but the sense that this amateur competition is not an entirely level playing field remains. ...
NONFICTION 1 BBQ Economics by Liam Dann (Penguin Random House, $40) “It’s official,” wrote Dann nine days ago in the Herald, where he works as business editor at large, “we’re in recession.” Yeah, great. He delivered the bad stats: “GDP fell 0.1 percent in the December 2023 quarter, compared with ...
Comment: Every year on February 2, a dozen men in tuxedos and top hats approach the burrow of a groundhog in Gobbler’s Knob, Pennsylvania and entice the beaver-like rodent to emerge and predict the weather. If the groundhog, named Punxsutawney Phil, sees its own shadow when it is summoned, legend ...
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Auckland Council has put a deadline on new weather-impacted property owners applying for categorisation as government funding looks set to run out. Councillors have voted to support a deadline of September 30 for property owners who haven’t accessed support to come forward and engage with the council’s recovery office. It ...
By Anneke Smith, RNZ News political reporter A petition urging the New Zealand government to provide urgent humanitarian assistance to the Palestinian people has been tabled in the House. More than 200 people gathered on Parliament’s forecourt today and they were met by MPs from Labour, the Greens and Te ...
Pacific Media Watch The Paris-based global media freedom watchdog RSF (Reporters Without Borders) has appealed for information about the “disappearance” of Palestinian journalist Bayan Abusultan. She was reportedly last seen on March 19 among people “sequestered” in this week’s raid and siege of Al Shifa hospital by Israeli troops in ...
EDITORIAL:The Jakarta Post It happens again and again; indigenous Papuans fall victim to Indonesian soldiers. This time, we have photographic evidence for the brutality, with videos on social media showing a Papuan man being tortured by a group of plainclothes men alleged to be the Indonesian Military (TNI) members. ...
Source: The Conversation (Au and NZ) – By Robyn J. Whitaker, Director of the Wesley Centre for Theology, Ethics, and Public Policy & Associate Professor, New Testament, Pilgrim Theological College, University of Divinity A strange and eclectic range of activities takes place across these few weeks of the year. Some ...
Source: The Conversation (Au and NZ) – By Panizza Allmark, Professor Visual & Cultural Studies, Edith Cowan University It’s Easter weekend, which means many of us will be kicking back with the greatest hits on repeat. But whether you’re a boomer, or an ‘80s or ’90s kid, you might be ...
RNZ Pacific Fiji’s Acting Public Prosecutor has filed an appeal against the sentences of former prime minister Voreqe Bainimarama and suspended police chief Sitiveni Qiliho in their corruption case. Bainimarama was granted an absolute discharge for attempting to pervert the course of justice while Qiliho received a conditional discharge with ...
Source: The Conversation (Au and NZ) – By Arosha Weerakoon, Senior Lecturer and General Dentist, School of Dentistry, The University of Queensland Casezy idea/Shutterstock How does toothpaste work? What did people use before toothpaste was invented? – Amelia, age 7, Meanjin (Brisbane) Thanks for your ...
Source: The Conversation (Au and NZ) – By Brett Hallam, Associate professor, UNSW Sydney IM Imagery/Shutterstock Solar SunShot is well named. The Australian government announced today it would plough A$1 billion into bringing back solar manufacturing to Australia, boosting energy security, swapping coal and gas jobs for those ...
Source: The Conversation (Au and NZ) – By Clare Dix, Research Fellow in Nutrition & Dietetics, The University of Queensland Easter is the time for chocolate. The shops are full of fantastically packaged and shiny chocolates in all shapes and sizes, making trips to the supermarket with children more challenging ...
Source: The Conversation (Au and NZ) – By Emma Felton, Adjunct Senior Researcher, University of South Australia Even in a stubborn cost-of-living crisis, it seems there’s one luxury most Australians won’t sacrifice – their daily cup of coffee. Coffee sales have largely remained stable, even as financial pressures have ...
Mining company Trans-Tasman Resources has unexpectedly withdrawn its application for a consent to suck the valuable metals vanadium and titanium from the Taranaki seafloor, as it apparently wagers on the Government’s new fast-track process. It had spent two-and-a-half days putting its case to the Environmental Protection Agency’s decision-making committee, at ...
Contrary to the Associate Minister of Education’s claims, analysis of Healthy School Lunches Programme - Ka Ora, Ka Ako assessments has revealed it provides excellent value for the taxpayer dollar, as a groundswell of public opposition to Government ...
Greenpeace says wannabe Taranaki seabed miner Trans-Tasman Resources is likely banking on Christopher Luxon’s fast-track process to side-step proper scrutiny of its Taranaki seabed mining proposal by bailing out of the Environmental Protection Agency hearing ...
Kiwis Against Seabed mining today slammed Australian owned would-be seabed miner Trans Tasman Resources (TTR) for abandoning its application to the Environmental Protection Authority (EPA) to mine the seabed of the South Taranaki Bight. The company ...
Source: The Conversation (Au and NZ) – By Katie Attwell, Associate Professor, School of Social Sciences, The University of Western Australia Ground Picture/Shutterstock Months after COVID vaccines were introduced in 2021, governments and private organisations mandated them for various groups. Health and aged care workers were among the ...
Source: The Conversation (Au and NZ) – By Andrew Dzurak, Scientia Professor Andrew Dzurak, CEO and Founder of Diraq, UNSW Sydney Diraq For decades, the pursuit of quantum computing has struggled with the need for extremely low temperatures, mere fractions of a degree above absolute zero (0 Kelvin or ...
Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne A national Essential poll, conducted March 20–24 from a sample of 1,150, gave the Coalition a 50–44 lead including undecided, a reversal ...
The Taxpayers’ Union has today made a formal request under the Regulations of the People’s Republic of China on Open Government Information () for information held about how New Zealand Members of Parliament are spending taxpayer ...
Source: The Conversation (Au and NZ) – By Robert Nelson, Honorary Principal Fellow, The University of Melbourne A Byzantine depiction of the Eucharist in Saint Sophia Cathedral, Kyiv.Jacek555/Wikimedia Commons, CC BY-SA A nasty quarrel arose in the 11th century over what kind of bread should be used in holy ...
Source: The Conversation (Au and NZ) – By Patrick Hesp, Professor, Flinders University Patrick Hesp In some parts of Australia, coastal dunes are retreating from the ocean at an alarming rate, as waves carve up the beach and wind blows the sand inland. But coastal communities are largely ...
Source: The Conversation (Au and NZ) – By Luke Heemsbergen, Senior Lecturer, Digital, Political, Media, Deakin University With an impressive 60% of the US smartphone market, Apple is undeniably big, but not a clear monopoly. Yet, years of innovation by Apple have effectively given the company its own exclusive ...
Whether you’re facing layoffs or are just an emotional junior staffer, it’s always a good idea to scout out a good crying place before you need it. It’s an incredibly hard time for Wellington. Across the city, thousands of public servants are hearing tough news about redundancies and layoffs. Government ...
Source: The Conversation (Au and NZ) – By James Miller-Jones, Professor, Curtin University Nuclear explosions on a neutron star feed its jets. Danielle Futselaar and Nathalie Degenaar, Anton Pannekoek Institute, University of Amsterdam, CC BY-SA How fast can a neutron star drive powerful jets into space? The answer, it ...
Source: The Conversation (Au and NZ) – By Daryl Adair, Associate Professor of Sport Management, University of Technology Sydney Earlier this week, independent MP Andrew Wilkie accused the AFL of conducting “off the books” illicit drug testing to identify players using substances of abuse, then inappropriately withdrawing them from matches ...
The Government’s announcement that it will scrap plans for a vast marine sanctuary around the Kermadec Islands is ‘shameful’ and will make it impossible for Aotearoa New Zealand to meet its international commitments, says the World Wide Fund for Nature ...
Source: The Conversation (Au and NZ) – By John Quiggin, Professor, School of Economics, The University of Queensland Shutterstock The federal government has bowed to pressure from the car industry, announcing it will relax proposed emissions rules for utes and vans and delay enforcement of the new standards ...
Source: The Conversation (Au and NZ) – By Suzanne Rutland, Professor Emerita, University of Sydney In his latest book, Jewish Life in Medieval Spain, Jonathan Ray focuses on the tumult of the 14th century in Spain – a time of the plague, civil strife and war between the two largest ...
While creating a slate of world-class shows, Whakaata Māori also developed a generation of world-class creatives. Television is an odd word. It mixes the Ancient Greek and Latin languages, and its most literal meaning is “far-off sight”. In the contemporary and living language of te reo Māori, “whakaata” as a ...
Yesterday the UN Security Council passed a resolution demanding an immediate ceasefire in Israel’s war on Gaza. This significant step and the deteriorating humanitarian situation in Gaza prompted an urgent debate in the New Zealand Parliament. Leader ...
The Government’s decision to reduce access to continuous glucose monitors (CGM) not only threatens the lives of children with type 1 diabetes and increases the potential for ‘Dead in Bed’ syndrome, but also threatens the health of their parents an ...
Apples are available year-round, but the wide variety on offer involves intensive scientific research – and large-scale commercialisation. What’s beautiful, red, sweet and crunchy? Tony Martin’s favourite kind of apple: Sassy. The CEO of apple and pear breeding organisation Prevar, Martin’s fondness for Sassy represents professional success as well as ...
Family violence specialist service Shine is calling on employers to stop asking for proof of domestic violence in order for employees to access domestic violence leave. The call comes five years after the introduction of the Domestic Violence ...
The Deputy Chairperson of the Finance and Expenditure Committee is calling for public submissions on the Budget Policy Statement 2024. The Budget Policy Statement 2024 (BPS) sets out the Government's priorities for the 2024 Budget. It explains the approach ...
Brutal government spending cuts that will see the size of the Ministry for Pacific Peoples slashed by 40% will hit Pasifika communities hard, the PSA says. The Ministry has told staff that it is seeking voluntary redundancies, and to redeploy and reassign ...
I live with five people I mostly love, but our different ideas about generosity are starting to really irk me.Want Hera’s help? Email your problem to helpme@thespinoff.co.nzDear Hera,This is a bit of a random one but here goes. I’m 22 and work an OK job (OK meaning I get paid ...
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While Nicola Willis wouldn’t give any details on its size, she said a package of tax cuts is definitely still coming in this year’s budget, writes Catherine McGregor in this excerpt from The Bulletin, The Spinoff’s morning news round-up. To receive The Bulletin in full each weekday, sign up here. ...
The Taxpayers’ Union is welcoming the investigation into the Department of Internal Affairs after it was revealed that the Department’s Chief Executive personally reached out to expedite a DJs passport application. Taxpayers’ Union Campaigns ...
Finance minister Nicola Willis delivers her first budget statement, and unwittingly helps Joel MacManus save his relationship. Nicola Willis strode into the Beehive Theatrette. Around me, on the green foldout seats, were the country’s top business and political journalists. They were all here to see her announce the Budget Policy ...
Twenty years ago today, Māori Television launched after much controversy. Jamie Tahana looks back on its survival and impact across two decades. Chad Chambers stepped onto the stage, the brim of his cap casting a shadow across his face. His smile beamed as bright as his white freezing works gumboots, ...
So after 3 and a half years, we have to wait another six months for another working group to start from scratch to evaluate light rail. It doesn't even sound like Dominion Rd is a definite as they've now mentioned Sandringham Rd. So absolutely nothing has been decided.
No decision on Auckland light rail, as Government opts for 'fresh start' on project | Stuff.co.nz
This project was originally sold to us as a much needed rail connection to the Auckland International Airpor. But it definitely won't be connecting to the airport anytime soon. (if ever).
So what's it all about?
Don't we ever learn?
Doesn't anyone remember the vanity project that was the viaduct light rail?
Developers thought it would be hoot to get rate payers to fund this vanity project to give their condo development a bit of a boho look. This vanity project has served its purpose and, despite all the big talk of extending it down Quay street to the Britomart transport hub, has been moth balled.
Now again there is talk of developers cashing in. With plans for multi-level condiminiums down the length of Dominion Road.
Of course these developers want a light rail, tramway, or whatever you want to call it down the length of Domininiou Road. Don't matter if, like the viaduct tramway, it doesn't actually connect to anything, because the tax and ratepayes will be footing the bill. But it will look flash. (for a while anyway).
Talk is, the construction will drive all the small businesses retailers down Dominion Road to the wall, and the developers will be able to buy up all these properties in a fire sale.
And the character of Dominion Road will be changed forever.
I feel I want to throw up.
I mean really, haven't we had enough of corpoarate welfare in this country?
Meanwhile Puhinui Road and the South Western Motorway is crying out for relief from traffic congestion to the airport. Let's get all those cars off the road The corridor is there. The need is there. Mike Lee saw the wisdom of it. The main trunk rail line is ritht there. What could be simpler. Even that old dinosaur Winston Peters with his populist air to the ground knew he could make political capital over the light rail vanity project down Dominion Road. The light rail project down Dominion Road, (or possibly down Sandringham Road) benefits no one except very limited special interest groups. It won't benifit workers who want to commute to their airport or nearby support workplaces, who currently find themselves in near grid lock traffic jams every working ding dong day.
It doesn't benefit arriving and departing air travelers from who want to get into and out of the city centre with as least hassle and time, and with a certaintly of timely arrival.
It doesn't benefit local businesses and residents.
Let's hope this disorganised dog's breakfast gets so tangled up in its own hubris that it never actually leaves the drawing board or the fevered imaginations of the condo builders.
So from today the minimum wage increases from $18.90 to $20 which will help some people. (I still think it would have been better to give everyone an extra $40 in the hand by changing the tax brackets so less tax is deducted). The tax brackets have not been adjusted since 2009? and both Nats and Lab have never adjusted for inflation. Any income over $48k is taxed at 30% which is way too high. And income over $70k that used to be 'rich pricks' income at33%. Well $an income of $70k is not what it used to be.
Last week we had the largest intervention in the housing market in decades which soaked the rich.
This week the minimum wage went up again, and taxes on the super-rich went up.
It's not like they're doing nothing.
so the tax paid by the super rich has gone up , really. How some are sucked in by what is said as to that what happens in the real world.
https://i.stuff.co.nz/national/politics/300238241/more-than-40-of-millionaires-paying-tax-rates-lower-than-the-lowest-earners-government-data-reveals
Who engages the best tax lawyers and accountants in the country.
The "super rich"
They won't be paying this tax.
Wish they would do something about dependent partners – they managed to for the COVID response. The extra tax (about 5,000 per year) a single person supporting two people pays over two people earning the same income might enable things like Kiwisaver that simply isn't affordable supporting two people affordable – let alone saving for retirement for two people.
Oh that is right they did do something – they removed the ability of partners to get NZS so now the working partner has to work even longer.
It is april 1st!!!
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
Yay! minimum wage goes up to $20…
Boo! Auckland Light Rail development according to Rt. Hon. Jacinda Ardern on RNZ this morning, is open to Public Private Partnerships–the NZ Labour Caucus monetarists (and their fifth columnist prodders in Govt. Ministries) invite further penetration of what should be public infrastructure by private capital.
Have a great April 1st.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
Penk and Brown? April Fools surely…
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
"Chris Penk-Simeon Brown"
Heh- fortunately I checked the calendar this morning.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
"It is all about growth. Even when it is clear that more and more people want and need a reliable, trustworthy public broadcaster on free-to-air radio, the ultimate aim for RNZ is about boosting numbers.
Sometimes this “growth fanaticism” is presented cleverly. It has been described as a ‘moral obligation’ for RNZ ‘to build lifelong relationships with all New Zealanders’.
But ultimately it is the same ethos as listening to ambitious sales people talk about their targets."
https://www.newsroom.co.nz/if-the-rnz-totara-falls-is-anyone-listening
And a Minister who appears to have disproved his earlier promise.
In other breaking news on April Fool's Day the Prime Minister has decided that the Deputy Prime Minister will enter a Monastery and Mr Robertson has chosen to take an extended stay in the Kopua Monastery in Central Hawkes Bay. His parting words were "I shall spend my remaining years in prayer that my offences against the New Zealand people may be forgiven. I shall never speak again".
This is a Trappist establishment. Trappist monks do not take a vow of silence but do not indulge in "idle conversation". This is a problem for Grant as idle conversation comprises his entire repertoire.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
"Ooh! Ooh! Look at me! I got the joke!"
A journey, where some of the scenery is different but the destination is the same.
https://www.theguardian.com/business/ng-interactive/2021/mar/31/uk-housing-crisis-how-did-owning-a-home-become-unaffordable
I think this Housing Crisis situation must be happening in most country's that adhere to neo liberal policy. Pulling back on state house building and selling off the same to reduce "big government" is a huge loser policy for the people that need it. And speculation in housing also rampant around the world with the same result-unaffordabilty. I think supply issues are not to blame in affordabilty, got fuck all to do with it IMHO. Our world pricing systems are all driven by demand regardless of supply levels. Butter anyone? We are surrounded by cows yet the price is up. Same with houses. Controls are needed but won't be forthcoming under neo liberal Govt's. Stuck with it!
It really depends on the Govt.
Take WA for example.
Here is a house 4 bedrooms 2 car garage and 2 bathrooms with a rumpus room, just 500m from a popular and good swimming beach.
For those buying their first home there is a huge discount provided by the Govt for new builds, so the incentive to buy existing houses by new buyers is just not there, and there is no upwards pressure on the market. House prices for 3 – 4 bedroom homes have stayed around the 350k – 450k range for years.
"It really depends on the Govt."
It does and it dosnt…..western central banks are members of a club and if you want the benefits of belonging to that club you play by the rules…and the rules are set by the hegemon…currently the US.
The government CAN decide it dosnt want to be in the club but that means losing the benefits of being in the club….and they fear that more than anything else at the moment.
Essentially, unless the Government decides the cost of being a member of the club is too high they are little more than middle management or worse, sales reps.
Fact is that successive WA Governments have consistently supported their construction and building industries thus maintaining and preserving a dedicated labour force. So there is no shortage of housing stock. They are in the fortunate position also of having abundant land available for development, and they have a well developed public transport system that supports these new developments. The biggest crisis as far as WA is concerned is the availability of water. There is a huge aquifer and a massive salt water desalination plant, but the rainfall in the area has steadily decreased over the last few decades as a result of the Hadley Cell shifting south with AGW and dramatically changing the climate.
Knew about the support, was unaware of the water issues and will note that the support dosnt prevent crashes if conditions are right,
"Values in Perth and Darwin are more than 20% below their 2014 peaks, while the remaining capital cities have seen housing values move to new record highs through the COVID period."
https://www.corelogic.com.au/news/why-didnt-australian-housing-market-crash
Yup. Aussie Citz get a 50k handout for new builds I think. If that's true and could be used to support the deposit then a great help, well done AU. SFA this side of the ditch tho!
Checking out Real estate windows on the Goldie shows pricing cheaper than Tauranga/Hamilton and way down on Auck. Sydney not so good tho. Go figure.
Our Gov did that years ago by allowing Kiwisaver funds to be used for 1st home deposits and then added a grant on top…..if joe public cant save the deposit (because of high rents living costs in relation to wages) then a mechanism needs to be provided to put a floor under the market.
Wouldn't 50k here pretty much go straight to the local council?
Depends on the cost of the build, but up to $500,000 build is around $5000 in Auckland.
https://www.aucklandcouncil.govt.nz/building-and-consents/building-consents/Pages/building-control-fees.aspx
That might look as if it is in Perth but it is actually quite a long way south.
It has about the same relationship to Perth as Paraparaumu has to Wellington, or the Auckland CDB to Karaka.
Perth has been in a depression for a couple of years now with the mines in the north of the state caught up in the Chinese row with Australia and the FIFO people who work there and live in Perth out of work. There are a lot of houses in the area for sale.
So relies who live there tell me anyway.
Warnbro, which is the local station on the Mandurah line, is a 40 min ride into the city. There is a train into the city every 10 mins. You might as well live there as in the City. I enjoy riding the train, and passing the cars on the Freeway as you travel at well over 130kph, and no traffic jams.
Lithium mining is the future it seems. Some of the FIFO people have packed up and left, but many others lived out of State – even here in NZ!
Agree…it goes back to the liberalisation of the finance and banking sector that essentially gives the banks a free hand to create credit (debt) as they like and so they have….and why wouldnt they, greater credit means greater profit for them.
Especially when they now know that when they overdo it the public purse will bail them out a la GFC.
Did people look at the link provided?
Did you notice what The Chancellor did in 2015 that was meant to solve the housing problem. It didn't do anything did it?
Now can you see any real difference between that and what Grant has just announced here? No? So what makes anyone think that the current Government actions will do anything at all to even ameliorate, much less solve the New Zealand problems?
Did anyone look at the link?…i have no idea, but i would suggest a couple of points, firstly they already had a reduced offset ability that was further reduced, unlike here where we have gone from 100 mph to zero in one hit, and as I have constantly espoused it is sentiment driving the market, sentiment spun by the vested interests.
But in a way you are correct, the underlying driver is the availability of credit which is the point, that is driving the price growth but that easy money (supported by ever decreasing interest rates) has run out of road…where to from here?
Item about a female stalker from today's Stuff webpage:
https://www.stuff.co.nz/national/crime/124709613/a-stalker-has-promised-her-victims-she-will-not-stop-until-she-dies
80 convictions for breaching protection orders. Now if only the authorities had been this assiduous about dealing with certain male stalkers or abusive ex-partners ….
Stuart Nash ..Police Minister, 2019
https://www.rnz.co.nz/news/national/390755/hawke-s-bay-mayors-gang-patch-ban-rejected-by-police-minister
Also Stuart Nash …Not Police Minister, 2021
Now personally I don't get all hot and bothered about patches. Living in the un ironically named Nash Street, in the middle of the Hood, I probably should ..but I just block it all out.
The issue I have is particularly with Nash, who rants and raves about a number of issues…only to disappear from the room when in a position to actually act on his beefed up "manly man" "Get Hard" rhetoric ..gangs, housing, jobs, fisheries…all have been through the same wash with Nash.
I've often said, given his stance on a number of issues, he should have joined the National Party. And as it turns out…by now he could well be Leader of the National Party.
Instead Labour are stuck with him. Like the kinda annoying cousin from the provinces that makes you dread the family Christmas year in year out.
But then again, it would seem he fits perfectly with Labours policy of incremental inaction..
Napier has the highest ratio of people in the country waiting for stable housing. Half of the motels are housing people who would be living on the street. Other areas have a high need as well.
An older teenager might find joining a gang giving them security or a place to escape. The one thing the government can do is build more state houses to deter youth joining a gang. Once in a stable home then the older teenager could look at job training or furthering their education. Youth are under so much strain when living in poverty. When home is an unhappy place a teenager will find ways to spend as little time there as they can.
Indeed. Like you say…The two problems that lead to gang membership here in the hood …dire lack of affordable, secure housing, and, equaly, wages in the orchards basically at a standstill since the 80's. When we first moved here people who worked on orchards and in the meat works could hope to buy their own home ..now a kiwibuild in Marenui was.$385,000 upwards ..and that was last year. .prices around these parts have escalated.
People tend to talk about "housing insecurity" in a slightly detached way, as if its purely a financial problem. I'm not sure they understand the effect on children of a life of feeling "less than" with parents at breaking point, time and time again, looking for yet another house…always on the back foot…
So, whatever, they can ban gang patches ..its not going to stop the problem one little bit…but I guess, out of sight, out of mind for some..
"Bernard Hickey wrote about this in January, suggesting that the Government could actually use this money to build up to 800,000 new homes: “Rent subsidies paid by the central government are forecast to rise from $2.6b last year to $4.2b by 2025. They have already risen from $1.9b over the last four years, Treasury figures show. Just as first home buyers use their rent to calculate how much they could afford to pay in interest, the Government could currently borrow over $400b with that $4.2b of rent subsidies. At $500,000 per dwelling, that $400b would ‘buy’ 800,000 new homes, which would be half the current housing stock of the entire country”
https://democracyproject.nz/2021/04/01/bryce-edwards-political-roundup-the-missing-part-of-the-govt-housing-package-state-builds/?utm_source=rss&utm_medium=rss&utm_campaign=bryce-edwards-political-roundup-the-missing-part-of-the-govt-housing-package-state-builds
An excellent piece that highlights how woeful the Governments action (?) on state housing is (and has been)….why is the Government not ramping up its ability to directly build the housing needed or, if incapable ,at the very least directly contracting to the private sector a construction programme significantly larger than current?
Fear of success perhaps?
Yeah the rental subsidy has been out of control for a while.The government could build or subsidise young people to build a heck of a lot of assets with it. Personally I think in some of the smaller districts they could add up the amounts paid – work out how much to build to collapse the rental market and then move outwards in ever widening crcles.
except they dont wish to collapse the market….hence the constrained build programme
I think its a rort and I can only assume that the government, regardless of hue is complicit. Surely they must see what other see or are they so naive?
They see it..and are very afraid, It is largely the basis of our economy.
"Chris Penk-Simeon Brown Ticket"
April Fools Day joke…surprising the numbers- on a political blog- who didnt get it.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
April Fools got cancelled.
Oh the poor wee numpties:
I fell for it.
yes, its a good one too. just enough truth in it to be believable and make me click to if a couple of nobodies could roll a never was
Why do we need to tax the rental income of landlords? Why not make residential rental income rent free?
I know that today is April 1st, but the above comment is not made in the spirit of April Fools Day.
Owner-occupiers do not pay tax on the income imputed to them by dint of their living in their own homes. This income is essentially the rent that they save from doing so.
Landlords probably pass the tax on as part of the rent, so it just represents an additional burden on tenants, and is probably a form of 'double taxation' (a situation where two lots of tax are paid on the same income tranche).
It would also put to bed all the arguments flying about over the removal of interest deductibility.
You know, I don't get taxed on the hire fees I don't earn from not providing a taxi service using my car. Not that I'm complaining.
I don't think a automobile is deemed to be an investment. I suppose one has to draw the line somewhere between what are considered investments, and what are considered consumption. Houses for some reason are considered investments. I suppose it’s because they are eminently rentable.
Why not make rent payments tax deductible?
Why not make rent payments tax deductible?
The danger with that is that landlords, knowing that tenants are receiving a tax break, would see it as an opportunity to up the rent.
Because the higher the rent the more tax you can deduct and the more profit. I don't think this is a good idea.
Top policy was to put a value and charge tax the advantage people get from owner occupying over renting if memory serves me correctly.
It does serve you correctly. It was one of the more subtle and important policy ideas TOP had – yet totally misunderstood or ignored.
Problem was it did not account for people on lowish fixed incomes – they'd've been obliged to sell.
Every time someone brings up this objection – and you are by no means the first – I'm left wondering at the dishonesty of omitting that TOP explicitly covered this off by giving people the option of deferring the CCT until either the property was sold or passed on in an estate. Effectively converting it into a standard CGT or an Estate Tax. But either way they got to live in their home during their lifetime without a hit to their cash flow.
I've forgotten how many times I've typed that out now. Please don't make me do it again.
"did not account for people on lowish fixed incomes – they'd've been obliged to sell"
Quite. And they are most likely to be retired people who over their lifetime have had relatively limited financial resources and acquired only one home, which, when it went onto the market, would most likely be bought by someone with several.
My suggestion is pretty much based on the same principle, and may be more useful in the current climate.
Landlords probably pass the tax on as part of the rent,
Landlords cannot operate like the IRD taxing a tenants rent.
Is there a way to stop this?
Landlords cannot operate like the IRD taxing a tenants rent.
They don't actually tax tenants' rent. But I would assume that they tailor the rent that they charge so that it takes into account the amount of tax that they themselves are paying on that rent.
The first rule in business is to watch the cash flow.
Any increase in costs, such as this new tax, must be managed, either the profit is reduced, costs are reduced elsewhere or the price is raised – or some combination of both. What cannot happen is that the cash operating profit goes negative. In that case the shareholder must either add funds, or the business is insolvent.
This new tax will likely take some unknown fraction of landlords into negative cash flow territory. I know that it's taken us very close to it, and our mortgage is relatively low compared to what it used to be. If this had happened to us ten years ago we would have fallen over almost for certain.
So are tenants now going to be taxed by the landlord, if so the rent has to increase?
So are tenants now going to be taxed by the landlord, if so the rent has to increase?
This would not be the case if landlords' rental incomes were tax free.
Yeah but many landlords charge rent completely unrelated to their costs i.e. market rent.
My mother on NZS has just had her rent put up another $30-00 a week on the mortgage free unit because the "market" says so. Also landlords aren't business people in most senses of the word. They don't even get when the government puts subsidies up by $30-00 that it is a 70 cent in the dollar subsidy. So the $30-00 rent increase means at best the person gets only $21-00 and is now $9-00 poorer. Business people they are not. You might be but many are not – for a large number the relationship between cost and rent isn't that existent.
There are many….whether they are implemented however is a different question.
Consider….an investor buys a property 20 years ago with a 20% deposit and a $100k mortgage over 25 years…the mortgage outgoings including principal payment at current interest rates equate to around $100 pw…there are additional costs associated but they remain deductable,
What is the current market rent for that property?
Debt ratios are key.
A friend of mine owns 20 rental properties – she had 22 but assisted her tenants to buy them. She paid the mortgages off years ago and charges rents that are affordable and reasonable.
Market rent is like CEO's salaries – once they start going up the market says they have to keep going up. They become self-perpetuating. They then push the price up as the capital gain starts outweighing the actual value and we end up in a viscous cycle with the working class as pawns in the capitalist game.
I partly blame Christchurch where profiteering after the earthquake massively increased rents and emboldened rampant capitalism. That is when a rent freeze should have gone on.
It was happening long before the ChCh quakes….the rent rort post quakes in ChCh was driven by insurance money….it increased the ability to pay.
Disaster capitalism
There are several ways to do this. What I think you're going for is to take the costs and add a margin. But then every owner will have different costs based on their mortgage, and it would lead to odd outcomes – if for example the owner came into an inheritance or windfall and used it to pay down their borrowings, thus reducing their costs – would you argue for the rent to fall at the same time? Or if the same house was then sold to a new owner with a much larger mortgage – should the rent immediately rise to match?
That's not how virtually any business works.
What actually happens I think is that the 'market price' is set by the vendor with the highest marginal cost. It's a bit like the electricity market in this respect – total supply must always equal total demand – and during peak periods when the most expensive generator comes online (because it has to) then everyone else is paid the same price that this generator charges.
The residential rental market isn't quite so rigidly organised like this, plenty of landlords actually charge well below 'market'. The data that the Ministry of Housing publishes is only for new bonds, it doesn't track older established ones at all – which as a rule are lower than for new tenancies.
The other way to look at this is to consider what would happen if the owner simply sold the property and put the cash into a bank deposit. This would be considered the 'Minimum Risk Rate of Return", which by convention is set at 3%. So if we took your 20 yr old property that is probably now worth north of $750,000 that would equate to around $22kpa return before tax. If you're going to go to the hassle and risk of renting the house to someone you'd certainly want to do better than this. Consider that your fixed costs – rates, insurance, R&M, new compliance rules, and management fees etc – are going to be at least another $10kpa, this means you need a rental income of around $32kpa just to do better than putting the money in the bank. That's a rent in the order of $620pw.
This is pretty easy to work out for the property you live in, just go to qv.co.nz and enter your own address. Then do the numbers for yourself – it should give you a sense of what your minimum rent should be if your landlord was being economically rational.
And the investor that bought the property for 120K 20 years ago may well decide that original 20K investment that is now worth say 750K today is better off in a TD or somewhere else…thats for him or her to decide…the point is IF the investor has not increased his/her leverage the pressure to increase rents does not exist…..it is a choice.
Nope – you need to have a bit more of a think about it. What would happen if the market consisted of just two rentals – an old one with no mortgage that had fixed costs only say $200pw or a new one with borrowings that had a cost of $600pw? And each landlord charged enough just to cover these costs only?
And now consider there are only two tenants who can choose between them. Assume both houses are of similar desirability for the sake of the argument. Which one would they both want? The cheap one at $200pw of course. But only one can live in it, forcing the other to pay $600pw to live in the other one. Well the landlord charging only $200pw might be content with this situation, but what happens when demand increases and a third new tenant appears in this market?
Of course none of this addresses the current problems in the NZ housing market that go well beyond the dynamics of the rental market, which has existed since the year dot.
a lot of mental gymnastics going on there to attempt to refute the fact the original landlord has a choice….and none of it changes the fact he/she does.
the fact the original landlord has a choice
So the original landlord charging only $200pw retires and decides to sell to a new operator? One with a much larger mortgage.
The point is that you're essentially relying on the willingness of this person to leave $400pw on the table indefinitely. You may well have an opinion on the morality of this, but I think you can see that in the context of a real world market – it's just not a stable scenario.
The willingness or not of the investor to set their rent at whatever will depend on multiple factors…one being the quality of the tenant…it is financially advantageous to the investor to have a reliable trouble free tenant who may be able to afford a lesser amount than to risk a series of unsuitable tenants and vacancy periods….real world enough for you?
I know investors who operate on this basis and have done for years…a good long term tenant is worth their weight in gold.
But all of that aside the original comment was regarding landlords passing on the tax changes to tenants and my comment pointed out that there is no need for many investors to pass on costs as the carry little or no leverage, and have no financial pressure to do so…..and as stated previously, those that are excessively leveraged and operating a marginal investment have the option to rebalance or exit …..non viable businesses are wound up all the time.
If two farmers are producing the same crop, but one due to having some competitive advantage – better rainfall or management methods for example – has a lower cost of production, and demand equals or exceeds supply, do you think this farmer will sell at a lower cost than his neighbour? Of course not – that farmer sells at the same price and uses their competitive advantage to make a higher profit.
This is how all businesses work, why do you think residential rentals must be an exception?
The most important factors in determining the level of rent is:
– Size of mortgage to service
– Number of bedrooms
– Location
Quality of the tenant might help in terms of future rent increases, a little. I have one house which we haven't increased for three years because they are solid and there's zero debt on it.
There's two others, only one of which has a mortgage and it's small – we do review that annually.
Agree with you about the very marginal investors. They will now get out, or their banks will tell them hard to sell one or two and bring their position down, or the next time they go to their bank for a rollover they are going to get a reality check. That's a desired outcome from government policy.
@Ad..yes dont disagree with factors setting rent but for some reason RL wants to debate a self evident truth regarding financial pressure on low or zero leveraged investors.
And yes banks will be having some uncomfortable conversations.
my comment pointed out that there is no need for many investors to pass on costs as the carry little or no leverage, and have no financial pressure to do so
For any given net profit the landlord's tax payment will always appear in the rent that he charges, for example (for a net profit of $100 pw there are two ways that this can come about:
(a) At a tax rate of 33% the landlord will need to add $150 to his outgoings in setting the rent, or
(b) At a tax rate of zero he will need to add only $100 to his outgoings.
Actually there are more than two when one takes into account the fact that different landlords may be on different tax rates.
@Mike
I am talking about pressure, not profit/return.
Simplistic…in fact there are numerous determinants in crop sales and the price is seldom the same for all sellers or even for the same seller across the entire crop….and one critical factor is the relationship.
But obviously its important to you for some reason to convince yourself that all investors behave the same way when patently they dont and as said originally the investor has choice….or do wish to continue to deny that fact?
And as an after thought what happens to the dairy farmer whose cost of production exceeds the MS price?
Buyers don't care or even know about the cost structure of the producer. If two truckloads of turnips from two different farmers turn up at the produce market – then all other things being equal – they will sell at the same price. What actually sets the price on the day is the balance of supply and demand.
Introducing other factors is irrelevant to the argument here.
And as an after thought what happens to the dairy farmer whose cost of production exceeds the MS price?
Either they find a way to reduce their costs or they go out of business. Tough on that farmer but good for the economy as a whole because it tends to drive toward better productivity over time.
what happens to dairy farmers who's costs exceed the MS price is an unwelcome visit from the bank….much the same will be occurring with many investors who are over-leveraged.
And turnips?….lmao..youre a funny guy
Great so what you've finally concluded – which is what I said days ago – is that as over-leveraged landlords exit the market the supply of rentals will go down. At a time when there is already a shortage of rentals this is only likely to put upward pressure on rents.
The argument that ex-rentals automatically become first homes is flawed because it assumes that ex-tenants are all going to become first home buyers just because they want to. What happens in reality is a lot more messy than this.
Have you been drinking?….you are arguing with yourself.
Go back and read what I wrote.
Aye but you're arguing that the market rent by necessity must be $600-00 per week because the most leveraged "investor" determines he market price. In you scenario both tenants would pay $600-00.
"Well the landlord charging only $200pw might be content with this situation, but what happens when demand increases and a third new tenant appears in this market?"
The landlord charging $200-00 might be even happier because they know that they are providing good support to someone even though demand has increased.
The rate of return argument is financial trickery to justify such financial rorting. It also becomes self perpetuating as values increase – I must charge this much because I could otherwise do this. The classic paradigm of knowing the price of something but the value of nothing.
It's nonsense pretending their is a strong relationship between rental income and cost. The fact that so many properties are actually untenanted – if the relationship was as strong as you suggest then you would not be rational to have a property untenanted. Plenty of landlords are content to have this occur.
Market rents like much of economics is filling an emotional response by landlords. It is nice couching economics in notions of rational players but that notion is a pretence.
It's why things have to be regulated.
The landlord charging $200-00 might be even happier because they know that they are providing good support to someone even though demand has increased.
This indeed is the position we are in. If I was to achieve the same return from my rents as selling up and putting the money into a 3% TD, I would have to increase them all across the board by $160pw.
Sustaining this position is a choice. Up until now I've been reasonably happy to accept a relatively modest cash operating profit because I could anticipate doing better once the mortgage was paid down. Plus indeed we did see it as a social good.
Well both of those conditions are now off the table, this govt has now added a new tax that reduces our cash operating flow to zero and has openly told us that what we are doing is no longer considered of any social benefit.
So either we increase the rent or do something else. Probably the latter.
I'm by no means a big financy guy, but it seems to me and rando calculator site that a landlord owning a $120k house that is now $750k after 20 years that the landlord already has a calculated return of 9% per annum.
Sure, let's say the saint will never sell. Sunk cost is $120k (plus interest on the mortgage that is now paid off), with ongoing rates and maybe a margin for projected maintenance (piles, drains, etc). That's if they're people who are genuinely providing a public service with no thought of profit, just the costs being covered. Not that private ownership is necessarily the best model for that, I'd suggest a trust or charity as an instrument for community rent provision.
But none of that has anything to do with market rates. That's a function of supply and demand. Housing shortage, so it's down to how much individuals can afford to pay before they're living rough.
Many landlords will be somewhere between those two extremes. Some might well be practically a housing service. #notAllLandlords is the problem with that charitable view, though.
@McFlock
Persisting in pretending there is no difference between cash flow and capital gain really disqualifies you from any honest participation in this conversation.
As for your idea that the market can run purely on a not-for-profit charity model, runs afoul of the fact that sooner or later those charities will have to renew their stock, and find the funds to do this. In the long run they have to operate commercially on pretty much the same basis as private operators do.
And then most private operators make relatively low cash operating profit, the difference between them and a ‘not for profit’ charity amounts to sfa.
You're the one saying the current capital value has anything to do with cashflow on a house bought 20 years ago.
If someone buys a house as a public service, the only costs are the costs of purchase (incl mortgage) and ongoing costs like rates and maintenance. And they don't have to "renew their stock" if they maintain the house.
Houses in NZ have about an 80yr economic life. This means that roughly 1.25% of them must be replaced every year just to keep pace with existing stock, much less meet a growing population. In my lifetime NZ has roughly doubled it's population.
And just about anything older than 50yrs no longer meets modern expectations, and needs substantial investment.
So in reality your 'housing charity' has to keep either replacing or adding to it's stock – at current market prices – in order to stay in the game. And it cannot do this on fresh air.
Many years back we were involved in Habitat for Humanity in the Wgtn area, essentially the kind of housing charity you have in mind. Once we got involved at the board level we had to be schooled in this lesson the hard way.
"At Habitat for Humanity Australia, we believe in helping low-income families achieve the dream of building and owning their own home."
"To date Habitat for Humanity Australia has built more than 160 homes in New South Wales, Victoria, South Australia, Queensland."
Habitat for Humanity and land Lords – not so different?
My (one and only) home is ~60 years old; it may not meet modern expectations but it (still) meets mine, and I’ve never had a complaint from occasional visitors.
So we have an arc in capital value that a well-maintained house goes from 120k to 750k @20 years to $0 at 50 years? I mean, bollocks, but even if it were true you could find that fiscal sweet spot.
Because they don't need to create a house from thin air, if the objective is to not lose money they can sell the old one and buy a new one using the increased capital value. And a landlord renewing their stock is renewing their capital assets.
But of course any landlord would be lucky to be in the business for 50 years, anyway – one reason to go to a longer term structure than personal ownership.
@DMK
Well like McFlock when we first started with H4H we too thought like he did, but it turned out we were quite wrong. A couple of older and more experienced members had to be quite sharp with us over it.
And H4H is not even a rental charity. That would be closer to the Masterton Community Trust model, and even that very well established entity charges rents that are not all that much lower than the private market in the same town. Certainly they don't hold their rents static for 20 years as McFlock would have them do.
Are rates and maintenance static for decades?
As for "not all that much lower", that difference is still significant for the people who rent it, so "not all that much" is a relative term.
There are several ways to do this. What I think you're going for is to take the costs and add a margin. But then every owner will have different costs based on their mortgage, and it would lead to odd outcomes – if for example the owner came into an inheritance or windfall and used it to pay down their borrowings, thus reducing their costs – would you argue for the rent to fall at the same time? Or if the same house was then sold to a new owner with a much larger mortgage – should the rent immediately rise to match?
Differing tax rates also come into it. A landlord on a 17.5% tax rate can afford to charge a lower rent and still make the same net profit as a landlord on a 33% rate
“It’s a bit like the electricity market in this respect – total supply must always equal total demand – and during peak periods when the most expensive generator comes online (because it has to) then everyone else is paid the same price that this generator charges.”
This is why the Labour Party's single seller proposal, of earlier years, may have been a good idea. At peak times electricity could be sold, by a single seller, at an average price. A 'single seller' arrangement, however, would obviously not be appropriate in the residential rental market; mortgages, and landlords' tax rates (as pointed out above), would be disorienting factors. This is why mortgages and differential tax rates should not be factors in determining rents. Fairly stable, and equal (after factoring in differences in the quality of the dwelling) rents would seem to be desirable.
Influences due to differences in tax rates could be avoided if the same tax rate was applied to all rental income – I would suggest 0% ), but I think the influence of mortgage payments could only be avoided by removing them from rent determinations altogether. this latter suggestion would make sense since mortgages should be the landlords' responsibility in any case.
PS: If there was a CGT in place the fact that mortgages, including their interest component, are capital expenditure would suggest that the aggregate unclaimed interest might be considered deductible against a capital gain.
This is practice in a few US States, though it seems to be widely seen as an un-natural tax distortion there and is understood to have elevated house prices.
In considering this I think too much emphasis can easily be put on the differentials and incentives (between occupiers and investors or between landlord renter) and not enough on how much borrowing can be accrued against housing which appears more important to pricing.
The problem is that councils now reclaim all of the cost of supplying services to new sections in the first year not over a 30-50 year span from rates as used to be the case. The 4 billion spend announced last week was specifically to negate this practice for goverment builds.
Thats why sections are so bloody expensive.
Penk and Simian. Very droll. Two April Fools.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
https://www.rnz.co.nz/news/national/439646/sir-ron-brierley-pleads-guilty-to-possessing-child-sexual-abuse-material
Reminds me of the Jewish theme of the song 'If I Was a Rich Man' of what he would do. One who lives the ethical life, with little indulgences!
'Dear God, you made many, many poor people.
I realize, of course, that it's no shame to be poor.
But it's no great honor either!
So, what would have been so terrible if I had a small fortune?'
If I were a rich man,…
And then –
I'd build a big tall house with rooms by the dozen,
Right in the middle of the town.
A fine tin roof with real wooden floors below.
There would be one long staircase just going up,
And one even longer coming down,
And one more leading nowhere, just for show.
I'd fill my yard with chicks and turkeys and geese and ducks
For the town to see and hear.
And each loud 'cheep' and 'swaqwk' and 'honk' and 'quack'
Would land like a trumpet on the ear,
As if to say 'Here lives a wealthy man.'
But then –
The most important men in town would come to fawn on me!
They would ask me to advise them,
Like a Solomon the Wise.
'If you please, Reb Tevye…'
'Pardon me, Reb Tevye…'
Posing problems that would cross a rabbi's eyes!
And it won't make one bit of difference if i answer right or wrong.
When you're rich, they think you really know!
https://genius.com/Topol-if-i-were-a-rich-man-lyrics
Yay Patea Maori Club – symbol of the phoenix rising for all NZ.
https://www.rnz.co.nz/national/programmes/nat-music/audio/2018789866/patea-maori-club-announced-as-recipient-of-taite-music-prize-imnz-classic-record-2021
Only took 38 years to come up with the award. The song, and it was a great one, dates from 1983.
It is almost as bad as the Nobel Prize is getting. The 2013 Physics Prize, was awarded for work on the Higgs mechanism. The theoretical work had been done in 1964, half a century earlier.
Less government, less regulation, more business and more profit. Well that recipe seems to work well.
https://www.rnz.co.nz/national/programmes/ninetonoon/audio/2018789809/amazon-s-influence-in-america
The withering of anti-trust laws which allowed for the rise of behemoth companies started in the 1970s, MacGillis says, and then really intensified in the 1980s with Ronald Reagan.
“We’re now still experiencing that very lax approach to anti-trust which has helped abet the growth of these giants. To put it crudely, all sorts of business activity which used to be spread around the country in various sectors of the economy is now increasingly dominated by a handful of companies and that commerce, activity, and wealth is sucked into the places where they reside.”
And what about someone touting for a Silicon Valley here? It will cause as much problem as silicone breast implants did – look good to begin with and then the effects start body deterioration. Has this bloke got eye augmentation?
https://www.stuff.co.nz/business/124699041/nasa-chief-scientist-says-nz-should-become-a-worldwide-silicon-valley
Great fun – thanks. At the moment any laugh is better than none.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
Years ago, on April 1 the ODT had two front page articles that to me seemed equally farcical. It turned out that the monorail from Otago to fiordland was a real proposal.
Thought I'd submitted my appreciative comment (@4:39 pm) to the post: National Party leadership spill under way post (Categories: humour), but must have put it somewhere else by mistake – apologies.
Must be awful to lose one’s sense of humour; worse than losing the sense of smell imho
It is one of the symptoms of Covid-19 infection.
Something stinks at Immigration NZ
Are we concerned about public confidence should we investigate properly?
Or will we get the victims out of the country and then wring our hands over 'lack of evidence'?
Getting the victims out asap appears to be the plan…a good iteration of the three wise monkeys appears under way.
I've been listening to the musical Chess, The writers have done a clever piece about the Russian applying for asylum to smug Brit embassy immigration johnnies.
Embassy Lament
Oh my dear how boring
He's defecting
Just like all the others
He's expecting
Us to be impressed with what he's done here
But he hasn't stopped to think about the paperwork his gesture causes…
Have you an appointment
With the consul?
If you don't we know what his response'll
Be, he will not see you, with respect it
Buggers up his very taxing schedule…
https://www.google.com/search?q=youtube+lyrics+chess+embassy+lament
When Collins gets the old heave ho she should take a short while, resign her seat then go and try to do something useful. It’ll be after April 1st.
[TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
Surely Resigning would be the most useful thing she could do?
I am talking about pressure, not profit/return.
I know. I was pointing out that as long as the make a net profit, that the tax on that profit gets transferred to the tenant as part of his rent, regardless of the lack of pressure.