100,000 Cheap Houses Over Ten Years? I Have 10 Questions.

No one could argue against the idea just mooted at the Labour Party Conference. A 100,000 extra houses targeting first home buyers to be built over the next ten years would be a great thing indeed.

But I have a few questions

1. The idea requires 10,000 new  houses to be built every year. Where is the man power going to come from? Builders are flat out dealing with the Christchurch rebuilding for many years to come.  Are we going to import more tradesmen from Asia?  Who will build the houses for those who do not qualify to be first home buyers?

2. The idea is that the completed houses will cost $300,000 land and buildings. Take out the GST component and the true cost will be $255,000 land and buildings. Take out the land, the infrastructure, the drainage, the footpaths, roads, power, water supply, transport, schooling, and shops you will have nothing left to pay for the timber, steel, appliances, carpets, paint, tiles, concrete, drapes, wiring, plumbing, heating, insulation, gardens, and fencing.

If this calculation is wrong would somebody please supply the detailed figures?

3.  The idea also says that anyone buying one of these homes must keep, them for 5 years or be “penalised’ financially. What happens if the new owner loses his job and can’t keep up the payments and needs to sell up? .

4.What happens if the buyer dies before 5 years is up? Can their beneficiaries cash out without penalty?

5.What happens if a couple divorce? Who gets what?

6.What happens if they have several children and need more room?

7. What happens if they move out for whatever reason, and rent the property out? Are they penalised then?

8. Can people who have had a previous relationship and are now without a home, qualify as first home buyers?

9. If they sell after 5 years will they be taxed on any profits? ( bound to be a profit considering the cheap entry level)

10. Buyers must provide their own deposits. What if Mummy and Daddy give them the deposit. Will there be a special government department set up to monitor the buyers finances?

On another note:  There are cheap homes available for delivery right now and all NZ built . Why not use them? The prices are great too.  ( see photos) .

Labour promises to build 100,000 homes in ten years at NZ$300,000 each; Will work with private sector, community agencies, local govt

November 19, 2012 – 07:19am,

By Alex Tarrant

Labour will tap the government’s cheap borrowing costs to launch a ten-year programme to build 100,000 homes at less than NZ$300,000 each if it gets into power in 2014, leader David Shearer announced over the weekend.

Shearer said around two-thirds of the houses built over the first five years of the programme would likely be in Auckland.

Other developments would be built around New Zealand in places of high housing costs, such as Christchurch, Tauranga and the Western Bay of Plenty, Nelson, Wellington and Queenstown Lakes District.

KiwiBuild

Dubbing the plan KiwiBuild, Shearer said houses would be sold as they were built, “so over the full course of the programme there will be no cost to the Crown.”

“Once the build is underway the programme becomes self-sustaining within the first term as the sale of one batch of houses finances the development of the next,” Shearer said at the Labour Party conference on Sunday.

Read the rest here:

http://www.interest.co.nz/property/62076/labour-promises-build-100000-homes-ten-years-nz300000-each-will-work-private-sector-c

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