Another report on the chronc state of housing has been produced, no doubt at huge cost to the tax payer.
Full of good intentions, I doubt if a single idea it suggests will ever be implemented.
The chronic and worsening shortage of affordable houses will continue to lurch from one crisis to another until some real issues are addressed such I suggested in my interview with Interest.co. ( see below) .
One good thing the report said was that a capital gain tax would be of little use to which I would add that any such tax would be the final nail in the coffin of ever getting affordable houses.
It can also be noted that on “Trademe” at present there are over 800 houses for sale for under $300,000. Is there an affordability crisis or are buyers wanting to live beyond their means ? Goodness knows how many more are available in this price bracket throughout the country.
Urgent changes’ needed for housing
CATHERINE HARRIS AND DANYA LEVY
The Productivity Commission has urged the Government to free up more land for affordable housing, especially in urban areas.
The commission, who has just released a draft report on housing affordability, noted that sections were now on average about 40 to 60 per cent of the cost of a house, particularly in Auckland.
“That means new homes tend to be at the top-end of the market. No one is going to put a $150,000 home on a $300,000 section,” said commission chair Murray Sherwin.
He said it was “abundantly clear” that there was a missing step on the property ladder for younger people and those on lower incomes.
“The chances of them ever purchasing their first home are decreasing.”
However, the Greens say the Commission lost an opportunity by not advocating for a capital gains tax on property which excludes the family home.
Read the rest here: