Twyford under pressure on Kiwibuild policy of straw

Labour campaigned on a bold policy to build 100,000 new ‘affordable’ houses in ten years. Phil Twyford was prominent in promoting the policy and slamming the then National led government for it’s poor record on housing.

But Twyford has hit some speed bumps, with chimneys falling off Labour’s grand plans.

Twyford has been found wanting on detail over affordability and pricing of Kiwibuild houses, and it now seems that the Government won’t necessarily build all those houses promised – they will buy from existing housing stock, developments and off plans.  This may allow them to claim numbers, but it will reduce privately built and owned houses.

There has always been questions about how affordable Kiwibuild houses might be. How does half a million dollars for a one bedroom apartment  sound?

NZH: Larger Kiwibuild homes will cost $50k more than promised during election campaign

The Government has hiked the price of larger houses in its flagship building programme by $50,000.

Labour’s election promise to build 100,000 affordable houses in 10 years included prices of between $500,000 and $600,000 for standalone homes and a cap of $500,000 for apartments.

Tender documents sent out to developers on Tuesday show that new homes built under the Kiwibuild programme would now be priced according to how many bedrooms they had.

One-bedroom properties would be sold for $500,000, two-bedroom for $600,000 and three-bedroom for $650,000.

That meant the larger houses were $50,000 more than Labour promised during the election.

A spokeswoman for Twyford said that was because the modelling on the prices had been done two years ago and had now been updated.

Will prices be updates again when the houses are actually built?

Newshub: Housing Minister apologises for ‘confusion’ on price of KiwiBuild homes

Housing Minister Phil Twyford has apologised for a mistake he made about the price of a KiwiBuild home.

On Friday morning on The AM Show, Mr Twyford said the price of a one-bedroom Kiwibuild home would be $550,000.

Mr Twyford now admits he was wrong.

“I misspoke this morning when discussing the KiwiBuild price points. I apologise for any confusion caused,” he said in a statement to Newshub.

“Yeah, it’s gone up slightly. We did the original modelling for those price points two years ago, and under Judith’s [Collins, National housing spokeswoman] Government’s policies, build costs are rampant,” Mr Twyford told The AM Show.

 

And KiwiBuild seems to have also become KiwiBeg and KiwiBuy.

The Government has also been under fire from the Opposition over its plans to buy homes currently under development in order to reach its ambitious KiwiBuild targets. Documentation on the scheme now says it “aims to facilitate the delivery of 100,000 affordable dwellings”, rather than just build.

“By underwriting or buying affordable KiwiBuild homes off the plan, what we do is we de-risk and speed up developments that otherwise might not take place at all.”

It is also likely to take over private developments, simply moving numbers from private to public and not increasing housing stock as much as promised.

Duncan Garner calls it “a total hoax”r: If Twyford can’t Phil us in on KiwiBuy/Build, who can?

Seriously, what has Labour and its MPs been doing these last nine years? Eating their lunch? We’d been led to believe its flagship Kiwibuild idea was this amazing, smart and innovative housing policy. We’d been told it was an answer to the housing crisis for those who couldn’t get into their first home.

And I assumed KiwiBuild meant just that;  as Housing Minister Phil Twyford said, 100,000 homes would be built.

Now we learn, um no, that’s not the case. It’s Kiwibuy, that house, your house, any house will do.

Labour has simply thrown its arms up in the air and put up a classified advertisement the size of a house that calls for all houses to be bought and sold as Kiwibuild dwellings. Labour wants the biggest shortcut to success possible.

It wants to buy current homes under construction or off the plans and call them Kiwibuild’s own. It’s a total hoax.

And what, Labour suddenly wants to partner up with the private sector? How convenient.

What happened to development on a genuine scale and with true Government buying power.

To me, it looks like Labour and Twyford have made this all up on the back of a moving envelope. It is underwhelming nonsense from a party that looks bewildered and blinded by the size of the challenge. It lacks detail.

 

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51 Comments

  1. alloytoo

     /  May 12, 2018

    House does buying existing projects increase the housing stock? If you don’t increase the actually supply then all you are doing is wasting taxpayers money

    Reply
    • Gezza

       /  May 12, 2018

      Took a couple of takes to figure out what you meant in sentence 1 😉

      Reply
      • alloytoo

         /  May 12, 2018

        How does buying……sorry Keyboard chair interface error.

        Reply
    • unitedtribes2

       /  May 12, 2018

      It doesn’t it just gives them control over who gets to live in it. I suspect you and I will be forced to invest in that policy

      Reply
  2. David

     /  May 12, 2018

    I would have thought Twyford would have had some legislation in parliament by now, certainly some sort of arrangement with Auckland council, some planning in fact anything. I have done more building than Twyford this year and got 4 first home buyers onto the property ladder.
    At the moment he seems to want to buy houses at retail, run a lottery and then sell them at a lower price. One would have thought there were more pressing needs for taxpayers money.

    Reply
    • Blazer

       /  May 12, 2018

      St David…’and got 4 first home buyers onto the property ladder.’…such benevolence…picked up the new Range Rover…yet!

      Reply
      • David

         /  May 12, 2018

        Yup, and its just a joy to live with the tech in there is amazing. Check it out Range Rover Velar R Dynamic SE Black Edition on YouTube, I opted for 22 inch wheels.
        Takes a bit of getting used to all the touch screens and being black its an arse to keep clean but after decades of 7 days a week work its nice to have a treat.

        Reply
  3. Alan Wilkinson

     /  May 12, 2018

    Calling them clueless is too kind. A bunch of lying idiots is more precise.

    Reply
  4. Blazer

     /  May 12, 2018

    Whatever Labour do,they can do no worse than the disingenuous ,moribund National droogues who watched the ramping of property prices….and did virtually…nothing.

    Reply
    • Alan Wilkinson

       /  May 12, 2018

      They can and will do worse. They will waste a lot of taxpayers’ money while making housing less affordable by increasing costs and regulation. They are well into that already.

      Reply
    • alloytoo

       /  May 12, 2018

      They’re going to spend an awful lot of money and not add any more stock than the market was going to anyway.

      That is a the very definition of doing worse.

      Reply
  5. Gezza

     /  May 12, 2018

    Twyford is an idiot. He’s probably their worst Minister at the moment in terms of steadily losing all credibility. He’s going to struggle to meet any targets & his murky pool of excuses fools nobody.

    Reply
    • Blazer

       /  May 12, 2018

      disagree,he has a huge task…and is effervescent,determined and doing his best.

      Reply
      • Gezza

         /  May 12, 2018

        So was Frank Spencer

        Reply
      • Gezza

         /  May 12, 2018

        He’s got 2 1/2 years to build the number of houses promised & a huge challenge ahead of him Blazer. It’s looking like it’s not doable unless he starts finding ways to fudge what is Kiwibuild beyond what anyone would consider to be Kiwibuild & beyond what anyone would consider to be “affordable”. I can’t really understand how come there was obviously no actual freaking plan.

        Judith made him look dodgy & daft on the AM show, & she never even raised a sweat.

        It’s going to be interesting to see what their immigration policy ends up looking like too. How much like Nationals’.

        I don’t much care if they purloin any of National’s policies, make a tweak here and there and have the brass to claim it’s theirs – if it works and gets houses built, or gets more made available for sale. By the end of their term they may get away with that, if Bridges is still the leader of the Nats – but they have to really massively crank up their own build programme to be credible.

        Reply
    • unitedtribes2

       /  May 12, 2018

      How to stay in Opposition when elected to Government.
      Blame the last Government for everything.

      Reply
  6. PDB

     /  May 12, 2018

    I think David Shearer as Labour leader announced Kiwibuild back in 2012 – 6 years later Labour still have no idea how it was supposed to work and are now trying desperately to make up the numbers by buying up housing developments that were going to built by the private sector anyhow or had stalled because of the Labour-led govt’s own policies.

    Gareth was right for once about one thing – ‘lipstick on a pig’ indeed.

    Reply
  7. PartisanZ

     /  May 12, 2018

    While I admit its not looking great right now, only 7 months in, the ‘Titanic’ created by National’s housing policy – if they had one aside from the ‘free market’ and ‘bright line’ – has an incredibly unresponsive rudder, an enormously wide turning circle and takes forever to pick up speed …

    It also has multiple ‘Captains of Industry’ who are probably incredibly difficult to remove from the bridge …?

    Reply
    • PDB

       /  May 12, 2018

      PZ: “created by National’s housing policy”

      As proven many a time on here house prices rose more under Labour than National even taking into account the fall off in prices at the end of Labour’s term and National starting in a period of downturn which soon righted itself. Just like Labour put more cows on farms in their term & water quality got worse under Labour and improved under National.

      Kiwibuild had no chance of success as it was simply a slogan looking for a policy. Even if it was successful is $550,000 for a one-bedroom in South Auckland the promised land of ‘affordability’?

      Reply
      • Blazer

         /  May 12, 2018

        save your whataboutism.National fuelled the ramp up of property prices.Look at Key, 400% increase in 4 years on his Parnell property…he made more as PM than he did in forex gambling.

        Reply
        • Alan Wilkinson

           /  May 12, 2018

          How can he save his whataboutism when you’ve stolen it?

          Reply
        • David

           /  May 12, 2018

          “Look at Key, 400% increase in 4 years on his Parnell property”

          Your statements are getting to Trump levels of bullshit.

          Reply
          • Blazer

             /  May 12, 2018

            you tell me..section bought 2013..2.4,build all up 5.7,sold 2017 20mil ,plus retained 500sq….over to you.

            Reply
            • Blazer

               /  May 12, 2018

              quoting the valuation data does not alter the facts I ..presented…withdraw and apologise.

            • David

               /  May 12, 2018

              You have claimed the property has increased in value 400% in 4 years. This is demonstrably untrue. The CV in 2011 was $9.9m.

              The numbers you have claimed are not supported by the data.

            • Blazer

               /  May 12, 2018

              you are backpedalling…not interested in the C.V…talking about actual investment and return ….the price paid,costs and sale price.

            • David

               /  May 12, 2018

              Provide evidence of the purchase price & date.

            • Blazer

               /  May 12, 2018

              I don’t have a copy of the S&P Agreement…only what is in the public domain…which you maintain…is Trumpesque bullshit.

            • David

               /  May 12, 2018

              “section bought 2013..2.4,build all up 5.7”

              Just so as we are clear here. This is your claim, that Key purchased the property in 2013 for $2.4m and built the house for a total cost to him of $5.7m. Can I ask where you got this information, as QV holds no sale data that reflects this.

              Given your claim, it means he was sold the property for less than it’s valuation at the time of somewhere around the $12m mark. A lot less. Deal of the century stuff. Who sold it to him?

            • David

               /  May 12, 2018

              “I don’t have a copy of the S&P Agreement…only what is in the public domain…which you maintain…is Trumpesque bullshit.”

              I’m looking at all the data in the public domain. Sale prices are public domain, yet none of it reflects your claims.

              The thing I find quite odd is your claim that he purchased the property in 2013, yet seems to have lived their for quite a long time. It’s also odd that the house was built in 2002 according to QV, yet you claim it was built in 2013?

              I also find it quite odd given a complete history of John Key’s property ownership is easily found with a 3 second use of google, published in a newspaper no less, and none of it matches your claims.

              From 2008, a full 5 years before you claim John Key purchased;

              “St Stephens Ave, Parnell:
              The family home

              Key began purchasing this patch of land in 1997, buying up three properties to build a 763sq m dream home on a 0.235ha site, complete with cabana, swimming pool, spa and tennis court. The latest valuation lists the property as worth $6.82 million. ”

              I just want to check with you on that this is correct.

            • Alan Wilkinson

               /  May 12, 2018

              B is immune to truth and facts, David. Whatever you prove now he’ll still be trotting out the same nonsense months from now as if he had never been shown better.

            • Blazer

               /  May 12, 2018

              Key had a house in Remuera…anyway from his biography…
              ‘Bronagh used to look longingly at a spare section beside an old house in St Stephens Ave. She often said when they passed, “I’d like to live there.” They had been in London a couple of years when John made a quick trip home to visit his mother and a friend in Auckland phoned to tell him “Bronagh’s section” was for sale. He went there, saw that the house and section were on the market and phoned the agent. “He came around and said it’s on for, let’s say, $2.7 million. I offered him $2.4. He said that was what it previously sold for and told me there was a guy willing to pay the asking price but hadn’t yet fronted with the money. I said, here’s the deal: it’s $2.4 million cash and you’ve got 15 minutes. I’m flying out shortly. “He started to play games. I said, it’s 13 minutes, take it or leave it. He said, well there’s this other guy … I said, there’s always another guy, you’ve got 11 minutes. “So, anyway, he took it. I signed the papers at the airport. ‘

            • Blazer

               /  May 12, 2018

              ‘according to QV, the highest confirmed sale over the past two years in Parnell was down the road from the Keys at 141 St Stephens Avenue, which sold in 2015 for $10,088,00’

              ‘The Key family won’t be moving far: The former prime minister and wife Bronagh are said to have retained the basketball and tennis court area, measuring roughly 650sqm, for a future home. ‘
              ‘That slice of their property alone, a small chunk of coveted Parnell land, is estimated be worth around $4m in itself’

              whichever,or whenever ..Key presided over rampant housing inflation that in the Parnell scenario turned a possible 8mil investment into..25 mil…in his term.Quite a significant…’earn’.

            • Blazer

               /  May 12, 2018

              the time frames he purchased and built on the Parnell property don’t alter the huge profit he made as P.M.ALL THE WHILE…’
              ‘A property investment company he is a co-director of along with Brian Cocker, Leslie Graham, and Colin Leuschke. The company owns a commercial property in Eden St, Newmarket, bought in January 2001 for $520,000.

              Tenants include a Pilates studio and the Leuschke’s architecture firm. Key’s business connection with Leuschke and Cocker was highlighted last year when the pair put into liquidation one of their other companies facing a leaky building lawsuit, Leuschke Group Architects. ‘

              So property inflation was always in his best interests.

            • Alan Wilkinson

               /  May 12, 2018

              “let’s say, $2.7 million”

              There’s a clue for you, B. It’s not the real number.

            • Blazer

               /  May 12, 2018

              looks like I was wrong…it was only just over…300%…sorry.

            • David

               /  May 12, 2018

              ““So, anyway, he took it. I signed the papers at the airport. ‘”

              Not in 2013 now was it, and you knew that, the biography would have made that very clear indeed. It was your choice to lie about it.

              “whichever,or whenever”

              Trump would be proud.

              “Key presided over rampant housing inflation that in the Parnell scenario turned a possible 8mil investment into..25 mil…in his term.Quite a significant…’earn’.”

              Key turned his investment from $5.5m in 2002 into around $10m by 2008 under a Labour government assuming that property increased in value the same as the rest of NZ. A rate of increase of around 11%pa.

              Your claim Key presided over this inflation is, again, demonstrably, untrue. It was the same under the Labour government as it was under Key’s.

              For comparison, I purchase my place in Auckland in 1999 for $245,000. By 2008 it had increase in value to $650,000. Under a Labour government. That is a 165% increase in just 9 years.

            • David

               /  May 12, 2018

              “P.M.ALL THE WHILE”
              “bought in January 2001”

              John Key was not PM in 2001.

            • Blazer

               /  May 12, 2018

              ‘Key turned his investment from $5.5m in 2002 into around $10m by 2008 ‘
              yet…’ according to QV, the highest confirmed sale over the past two years in Parnell was down the road from the Keys at 141 St Stephens Avenue, which sold in 2015 for $10,088,00’

              ‘ A rate of increase of around 11%pa’

              you are the one lying/mistaken…now.

            • David

               /  May 12, 2018

              Blazer, you are suddenly interested in the QV data. How curious.

              For reference, 141 St Stephens Avenue is a 850sqm property with a 4 bed house, very significantly smaller than the Key property.

              In 2002 it had a CV of $1m, less than 1/5th of 105. Between 2002 and 2008 the property increased in value to $6.85m, a staggering 685% increase. Take a guess which Labour MP owned it…..

              ‘ A rate of increase of around 11%pa’

              This is the average rate of house price inflation during the years of the Clarke government from data held by the RBNZ.

              “you are the one lying/mistaken…now”

              The data supports everything I have said, perhaps you should read some of it.

            • Blazer

               /  May 12, 2018

              could be here all night…’
              Your claim Key presided over this inflation is, again, demonstrably, untrue. It was the same under the Labour government as it was under Key’s.’

              that does not mean he did not ‘preside’ over it.

              The point is that a man who was scathing of Labours inaction,promised a 4 point plan to rein in property inflation.As we see ,he did no such thing and made huge profits from his RE investments.

  8. Alan Wilkinson

     /  May 12, 2018

    Twyford is just a rabbit in the headlights after discovering that the universal Labour solutions of regulate and throw money don’t work.

    Reply
  9. David

     /  May 12, 2018

    The fool has torpedoed the Auckland apartment new build market with his ban on foreign investors, they simply wont go ahead now negatively affecting supply.

    Reply
    • Blazer

       /  May 12, 2018

      the apartment builders with chinese sounding surnames had already pulled back due to mitigating,finance factors as you ..should know.

      Reply
  10. alloytoo

     /  May 12, 2018

    Was than Bruce Lee, Christopher Lee, Stan Lee?

    Reply
  1. Twyford under pressure on Kiwibuild policy of straw — Your NZ – NZ Conservative Coalition

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