The Labour ‘self-select’ model

Labour’s Kiwibuild policy will provide some people with cheap houses, giving them a windfall capital gain if it doesn’t drag all house prices down.

These houses could be eagerly sought, but the Kiwibuild fact sheet suggests the queue will ‘self-select’.

No household type will receive preference over any other household type. Nor will there be any income restrictions. On the whole, people will ‘self-select’, with those who can afford to move up the property ladder excluding themselves.

Is this based on the well proven Labour leadership ‘self-select’ model?

More blog comment on Kiwibuild:

2 Comments

  1. Keith

     /  November 19, 2012

    I think you’re being a bit harsh, conferences are for big idea announcements not details. For sure there are holes in it, just like asset sales.

    It will need to be first home buyers who meet at least some sort of ability to pay mortgage criteria. There will also need to be a penalty (capital gains “tax”) in place if they sell within x years. There will always be someone who will rort such initiatives but that shouldn’t stop a govt trying in the first place.

    Having said all that i can’t see it working for a host of reasons!

    • The paragraph I quote suggests more than naively that no one will rort it. This policy was being hammered at The Standard as Shearer was speaking.

      ‘100,000 homes on 10 years’ is a Green approach to policy, nice round numbers based on fanciful marketers.

      The speech lacked big ideas and lacked revealing the real David Shearer. It seemed like it was a string of one-liners, a couple of which a committee of speech writers hoped would become media quotes.

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