Nation – Solving the housing ‘crisis’

This morning on Newshub Nation:

Can the Government’s big ideas really solve the country’s housing crisis? We talk to housing strategist Leonie Freeman and Alan Johnson from the Salvation Army.

Alan Johnson from the Salvation Army:

Kiwibuild is going to benefit the young middle class, not the people he deals with everyday.

The Government is being unrealistic thinking they can reach Kiwibuild goals with very little subsidy

 

35 Comments

  1. Alan Wilkinson

     /  May 12, 2018

    The only chance Labour has of solving the housing crisis is to wreck the economy to the extent of stimulating net 50,000 emigrants per year. Word is that Shaw and Ardern are working on it but have yet to convince Peters.

    • sorethumb

       /  May 12, 2018

      The only chance Labour has of solving the housing crisis is to wreck the economy to the extent of stimulating net 50,000 emigrants per year. Word is that Shaw and Ardern are working on it but have yet to convince Peters.
      ….
      Pardon?

      • sorethumb

         /  May 12, 2018

        Are you syaing it is ok to have an immigrant fuelled economy?

        • Alan Wilkinson

           /  May 12, 2018

          To the extent we should encourage and enable good people to come here to live and work, yes. Otherwise you would still be digging kumara and making flax fishing nets..

          • PartisanZ

             /  May 12, 2018

            “Economy – meaning: the state of a country or region in terms of the production and consumption of goods and services and the supply of money.”

            “Economy – meaning: careful management of available resources.”

            Difficult to compare a money-less society like pre-European Maori with our Western form of ‘economy’ … despite each one’s various sophistications and barbarities …

            … and interesting to compare the ‘immigrants’ of colonisation – with their genocide and/or duplicity – with neo-colonial immigration … and its econocide* and deceitful iniquity …

            Refreshing too that one pathway into the future is toward a Money Less Economy (MLE) or Resource Based Economy (RBE) …

            http://www.moneylesssociety.com/home/2017/01/09/communism-vs-resource-based-economy-a-definitive-guide-how-rbe-will-arise/

            There are kinds of progress other than immigrant-money ones which may actually be more about digging kumara and making flax fishing nets …

  2. Blazer

     /  May 12, 2018

    If the housing market crashed ,mainly investors would suffer.People paying a mortgage for a family home would be …o.k.
    33,000 empty homes in Auckland needs to be addressed as does ..landbanking.

    • Alan Wilkinson

       /  May 12, 2018

      Yes, the Government should confiscate all empty homes immediately. It should be an offence to go on holiday, die while owning a house, move out during renovations, fail to sell or rent a house for longer than two days while not living in it or leave to care for a sick family member.

      The great Lefty Revolution knows how to fix the world.

      • Blazer

         /  May 12, 2018

        ’empty vessels ,make the most noise’…don’t they…Al!

        • Alan Wilkinson

           /  May 12, 2018

          Yes. It’s called Government.

    • Gerrit

       /  May 12, 2018

      Yep, the state should seize those underutilised assets. Please tell Grant Robertson to include in the budget

      Rates for the Auckland City Council, funding to provide for maintenance, and payments for extra HNZ staff to manage the 33,000 houses, defaulted mortgage payments to the banks who no doubt will seek reimbursement for lost capital and interest. etc.

      All sounds so easy till you have to fund it.

      Why nationalisation never works, no budget for staffing, upkeep and replacements…New Venuzuela here we come.

      You think anyone will invest in the governments housing schemes if large tracts of housing are nationalised?

      Or are you advocating not nationalisation but enforced squatters rights.

      • Blazer

         /  May 12, 2018

        a levy on homes unoccupied for periods of say 18 months is not…nationalising ..anything.

        • Alan Wilkinson

           /  May 12, 2018

          It’s merely stupid and would have zero effect on housing affordability but would cause difficulties for a few innocent people via the usual unintended consequences. Those intended as targets would easily circumvent it.

    • David

       /  May 12, 2018

      “If the housing market crashed ,mainly investors would suffer.People paying a mortgage for a family home would be …o.k.”

      Investors get to claim their losses against tax, they would be the least impacted by any crash. For home owners, a crash will wipe their capital out entirely and trap them in negative equity, bankrupting many,

      “33,000 empty homes in Auckland needs to be addressed as does”

      The vast majority of these houses are empty for good reasons.

      ” ..landbanking.”

      Landbanking is a product of the regulation of building consents and land use. It will exist as long as those regulations exist.

      • Blazer

         /  May 12, 2018

        ‘Investors get to claim their losses against tax, they would be the least impacted by any crash.’…so the banks would be happy with leveraged equity being wiped out…pull the other one..it plays a quintet by..Schubert.

        • Callum

           /  May 12, 2018

          Investors are required to hold more equity than homeowners, or did you miss that?

          • Blazer

             /  May 12, 2018

            so the valuations,negative gearing,interest only…have no bearing on refinancing!

        • David

           /  May 12, 2018

          “so the banks would be happy with leveraged equity being wiped out…pull the other one..it plays a quintet by..Schubert.”

          Happy? No. Would they foreclose? Maybe. Would they adjust the risk pricing, certainly. They can also instruct an investor to sell some property and then take the proceeds. They may also demand more equity be paid in, or other assets be sold.

          The banks have a lot more control of an investors position than that of a home owner.

          In the event of a significant crash in house prices, it’s the new home owners who get hurt the most.

          • Blazer

             /  May 12, 2018

            now address the Key /Parnell property equation you …lambasted me..for..

            • Kitty Catkin

               /  May 12, 2018

              My brother was caught in the UK when he and his partner bought a house (half a house) when prices were high and were in negative equity for I forget how long when they crashed. They could not have afforded to sell. Her pay as a teacher went on the mortgage and nothing else, and it must have been maddening to know that it was going for a house that wasn’t worth it.

              If state houses are empty because of fussy would-be tenants, I think that these people should be put down to the bottom of the queue.

            • Kitty Catkin

               /  May 12, 2018

              If Labour think that anyone will buy a one bedroom house, they’re dreaming. These are all but unsaleable. They sit on the market forever !

              Why on earth not use some of the excellent prefab houses like the ones built in Huntly which are good enough for anyone to live in ? They are not identical shoeboxes by any means, they are well-designed, well-made, low maintenance and make the best use of their space. I would happily live in one, so I am not advising people to do something that I would be unwilling to do myself.

            • Gerrit

               /  May 12, 2018

              The same equation that let Ardern and partner pocket $330,000 capital gain on their property after just 2 years of ownership?

              “Ardern paid $987,000 for the property in February 2016.” and sold on the 21 Apr, 2018 for $1.320,000.

              An un-taxed capital gain at twice the yearly average taxed wage for a typical Labour voter. Not bad for a two year investment.

              https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12035719

            • Kitty Catkin

               /  May 12, 2018

              I wonder why Labour cooled off about capital gains tax on houses ?

  3. sorethumb

     /  May 12, 2018

    SINGAPORE — If you hate government, want it out of your hair and held at bay, Singapore should be pure hell.

    One government agency manages 80 percent of the housing stock — all called public housing. It checks your age and whether you’re married to decide whether and when you’re eligible for an apartment. It decides what you’ll pay to occupy your flat, which local services will (or won’t) be provided. It even checks your ethnicity — every housing area has a set balance among the leading local ancestries — Chinese, Malay and Indian.

    So unless you’re affluent enough to own a private home — and few Singaporeans are — the government’s Housing and Development Board is your all-powerful landlord. Ignore its rules and you’re out in the cold.
    http://www.richmond.com/news/singapore-s-government-housing-works/article_54ea70a5-19e7-55c1-80c9-9ea68b7b2e14.html

    • sorethumb

       /  May 12, 2018

      Plus there’s a constant pattern of demolishing older apartment complexes and replacing them with new ones. To undergird community solidarity, residents are invited to move en bloc with their neighbors to brand new apartments.

  4. unitedtribes2

     /  May 12, 2018

    Before the agriculture revolution there was little concept of land ownership. A hunter could rest up under a log as long as need be and then move on to the next one. Everyone had a home. No money needed. a little blood spilt at times. Today freedom campers indulge in the same experience, little cost with council staff causing blood letting at times.

    When land ownership become necessary homelessness became common. This will always be the case. It is for this reason that Governments have an obligation to house those who cant or won’t house themselves. The argument is about how not if.

    • Kitty Catkin

       /  May 12, 2018

      I don’t believe that anyone is obligated to those who WON’T house themselves !

    • Kitty Catkin

       /  May 12, 2018

      Your idea of land ownership is something of an oversimplification !

  5. Kitty Catkin

     /  May 12, 2018

    If Labour bothered to look at Trade Me (I only looked there), they would see that there are houses and apartments in Auckland which are cheaper than their so-called affordable ones. I didn’t see one bedroom houses, but did see some one bedroom apartments, most well under the $550,000.

    • PDB

       /  May 12, 2018

      Don’t give them ideas Kitty – Labour will be on Trademe next buying existing houses and chucking a Kiwibuild sticker on them. By buying existing or already proposed homes & appearing desperate in doing so the govt will only ramp prices up further.

  6. Alan Wilkinson

     /  May 12, 2018

    Key ran up the white flag on housing when he put Nick Smith in charge of it. But he knew he didn’t have the votes to fix it anyway after Winston won Northland. So now it’s in Labour’s court and there is no chance whatever of the real causes being fixed. Just a herd of pigs running around looking for lipstick.

    • PartisanZ

       /  May 12, 2018

      Your porcine metaphor may also be applicable to the ‘free market’ you see as an all-healing balm for housing Alan … (“The free market will fix it, Right?”)

      Narcissistic individual and corporate pigs rooting up the environment and the economy at will …

      • Gerrit

         /  May 12, 2018

        as opposed to Narcissistic individual and the state’s bureaucrats rooting up the environment and the economy at will …socialism will conquer all?