Greens Sprinkle Fairy Dust

 

I don’t have a big concern about what the Greens propose because it’s only the current State Housing policy dressed up with a little fairy dust to give it some flavour.
The question of of course is whether it can be achieved, how much land will be gobbled up, who pays for the infra structure ( roads, sewage, power, schools, transport etc) and does the quoted cost of $300,000 include the land and GST?
I suspect it does not, which starts to make the exercise very expensive indeed.
The other ideas they have are straight out of the lunatic fringe.
A w.o.f. for properties sounds fine but how about a w.o.f. for tenants?
Tenants should not be allowed anywhere near a rental without an official clear bill of financial health produced well before they come within firing range.
What good for the goose is good for the gander.
And this idea that rents should be limited to one year reviews and automatic rights of renewal would be fine if long term property investment was encouraged and not discouraged as it is at present.
The parties from the Left has done nothing else in the past 4 years but threaten investors who provide rental accommodation with talk about Capital Gains tax, limiting LVR’s, and more regulation under the Tenancy Act.
Looks like election year 2014 has started early

 

Greens propose government built ‘Homes for Life’ that occupants can progressively buy back; also rent limits and rental ‘warrants of fitness’

January 24, 2013 ,
Bernard Hickey

 

 

The Greens have proposed a housing policy designed to work with Labour’s ‘KiwiBuild’ plan to build 100,000 government-built new homes in 10 years.

The Greens plan to allow occupants of these new homes to buy them back progressively from the government, using the government’s low borrowing costs to help first home buyers in who can’t afford a deposit or higher interest rates. This would be similar to the State Advances scheme used from the late 1930s to fund large scale state housing.

“Progressive Ownership is affordable for the government and offers smart stimulus to the economy. Because the families cover the Crown’s cost of capital, there’s no net cost or debt servicing to the Crown,” said Greens co-leader Metiria Turei in announcing the policy at the Ratana Pa near Whanganui.

“This policy echoes the State Advances scheme that saw former governments, both National and Labour, use the low sovereign borrowing rate to help young families to buy homes in the post-war period, which led to high levels of home ownership and a fairer society,” Turei said.

Under the proposal, families would live in a government built home, making a basic weekly payment to cover the government’s investment cost and making flexible payments on top of that to buy the equity in the house back off the government. No deposit would be required and if a family moved out a home before owning it outright the government would pay out that equity, the Greens said.

link:

ww.interest.co.nz/property/62838/greens-propose-government-built-homes-life-occupants-can-progressively-buy-back-also-

Posted in News & Articles | 1 Reply

One thought on “Greens Sprinkle Fairy Dust

  1. Olly, I think you might have it wrong here, this is very serious, it will kill cash flow and really make me consider selling up and going into commercial which would be far better than having rules, regulations, etc. We’ll become like Scandanavia and Germany who have rent controls, and so many rules it is not funny. In Germany thy make the landlord paint the entire inside when a new tenant comes in, by law!

    Surely this must be off putting for investors?

    Also, trust all is well I’m enjoying your commentary but really worry about the Greens.

    Cheers Dan

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