How Bizarre Is This?

On the one hand we have the politicians screaming that property prices are causing concern, and on the other hand we have the bottomless pockets of the State competing with Mums and Dads to buy modest homes.

One can’t help wondering that if ever the Looney Left get into power with all their talk of capital gains tax and controls, what will  Housing NZ do about its need for private investors to continue to provide rentals to the State?  I would think investors would run a mile rather than buy investment properties to hand over to Housing NZ only to find themselves taxed down to their underwear for their efforts . How Bizarre indeed.

Housing NZ bids up price

The Housing New Zealand property in Widmore Drive, Massey. Photo / Michael Craig
Housing New Zealand has been criticised for outbidding first-home buyers at auctions.

The state housing provider was among four groups of bidders on a two-bedroom property in West Auckland. It is understood Housing New Zealand finally outbid a father who wanted to buy the home to be close to his family.

Others at the Widmore Drive auction were surprised at the level of bidding from a phone bidder which was later revealed.

“It was a nice enough place but the phone bidder – the Housing New Zealand rep – was going up in $10,000 bids while the other bidders were going up in $2000 bids,” one man said. “How many working families are missing out because they come along with big pockets and buy at auction?”

The house, with a CV of $270,000 went under the hammer for $380,000.

The man, who asked not to be named, said there were similar houses nearby with lower asking prices than the auctioned house. He said the price had been pushed up unnecessarily.

“All buyers bar one dropped out around $335,000 and then HNZ went from around $365,000 to $380,000 in one bid,” the man said.

Read the rest here:

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10881566

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