Editors choice comments
I got out of Auckland 10 years ago and it was the best thing I've ever done. My only regret of course was I wish I had bought a house before I left but never the less I couldn't afford to at that stage in Life. When I'm mortgage free at 40 I'm sure I'll get over it :)
I see housing as the main driver of inequality long term in NZ. I have a four year old daughter. My wife and I are already making plans to buy a second house in our area close by to insure she could one day also live where she grew up and own a house. This seems crazy that we are buying a house for our 4 year old daughter, but with our current tax system it makes perfect sense. But what about the kids whose parents cant afford to do this?....the gap between the rich and poor just accelerates.
Also having to take on so much debt now to buy property also forces kiwis to be very...by: Jamin
It has been a disappointing but entirely predictable week for politicians talking about housing. In most bubbles the politicians talk it up and then try to keep talking it up once the market turns to crap. Bubble-O-Bill confirmed his ponzi credentials.
I don't think we're going to see more than a wee dead cat bounce after the election. The slowdown didn't start because of the lead up to the election, it was due to LVRs, restricted Chinese capital and banks hitting their domestic funding stops. For anyone to think there is going to be another boom post election, they need to explain where the...by: Zombie ponzi
A hilarious response from Nick Smith but not unexpected. Let's use public money to saddle FHBs with more debt under the pretense of helping them get on the property ladder.
Maybe if housing was made less attractive of an investment, then this problem would solve itself over time?
I recall the change as had started investing in Mutual Funds in the years earlier due to the income tax free status of contributions. Incentives matter!
Hindsight - always 20/20. The 1989 change came in the midst of the fallout from 1987 - so the Rahm Emanuel quip applied " 'you never want a serious crisis to go to waste"...https://www.youtube.com/watch?v=1yeA_kHHLow
The issue now is getting there from here, amidst an election characterised by bird-bath-deep analysis, fraud and cross-Tasman shtick, and personality politics.
But surely it is not the existence of LVRs that are the problem, but the extortionate price of housing? It's a bit like saying we must get rid of chemotherapy, but saying nothing about the cancer.
Its a bit like throwing a party but forgetting to have any chairs in the house...its cool temporarily until people want to find somewhere to sit and then they start bickering and after a while decide the party sucks and its time to leave. In the mean time your own kids have to go and sit outside because its too cramped in the house - all the while you stay in the warm lounge sipping champagne thinking to yourself, isn't this splendid...
Agreed Alex, this is National in panic mode.
A simple knee-jerk response to a complex problem will not and has not worked. It's like they live in some white picket fence fantasy land where a bit of stern discipline will get the problem sorted. This is a futile attempt to deal with the symptoms rather than tackling the problem
With .the overnight curfew, how likely are the parents to pay the fine? What do you do if it's not paid? Does the fine get paid and the child get beaten? Will this change child and parental behaviour? Have they really any idea what these kids home conditions look like?...by: Tom Joad
It's very disappointing to see this type of policy garbage dished out by a centre right party that no doubt wishes to be seen as pragmatic and sensible. It may attract a particular type of voter but it repels many others. It just looks desperate.
Great read... Mr Doyle "gets it" .. Poor governance, Lack of vision, Lazy economics.
"Growth is reliant on population expansion" The very definition of a unsustainable Ponzi.
"A long period of low returns" Agree, all this liquidity is painting equity's into a corner.. and.. that brings us right back to bricks and mortar.
And thanks for the spell check thing its oarsome!
by: Camel's back
I really wouldn't bet on NZ First going against National, remember 1996. I'd bet Winston will go with whoever has most votes out of National and Labour. If he can form a government with just National I bet he'll take that over Greens plus Labour.
So let me get this straight. The major banks have gone and closed the accounts of numerous money remitters and brokers over the past couple of years under the guise of AML risk, when in fact they themselves are running systems that "provide a high degree of anonymity and an easy method to place the proceeds of crime into the banking system."
Just goes to show, pumping out mortgages is the best gig in town. You have the legislation, implicit guarantees, the loyalty of the sheeple, and global monetary experiments all contributing to grease that billion.
How to make money in 2017. Really not that much different from 2006,
Am at the moment asking Auckland council to approve some work on my property, Close to $30k later on fees and plans am no closer to getting approval. A family member is in the same predicament for a lesser project close to $20k before a spade enters the ground. This is for additions to existing structures needing consent. And we wonder why there are not more new houses???
Thanks Brian another great article. And no thanks to the National party and paula bennett minister for climate change and talking a load of waffle achieving absolutely nothing. Bit like housing, poverty, health, transport in AKL - do nothing, deny there's a problem, spend money in the wrong places with cronies and wait for a crisis then pretend to do something.
Simple solutions are commit to 100% renewable energy, carbon tax new agricultural emissions, remove ALL fossil fuel subsidies, put in a carbon minimum price and encourage large plantings of forestry - 1 million hectares worth to bring...by: Tim Tam
Reading the two plans, one was aimed at 20 years ago, and one is aimed at today.
None are aimed for 20 years in the future - which is when these ideas will eventually come to fruition.
It seems whoever we vote for they will continue to only plan in hindsight.
Does Nick Smith even exist?
If a minister claims to be taking lots of action but produces no meaningful results, is that minister just an illusion, a figment of our collective imagination?
yep, it extends to real estate agents, lawyers, etc.
The question whether it will make a material difference, or indeed whether the current system is effective, hasn't been asked. [The former has been, seemingly, but arguably (and demonstrably) in a way that obscures much of the reality, and sits on a sea of unsupported assumptions]
Any decent political science student could deconstruct the policy-making process, and apply any number of objectively verifiable adjectives to it, but it's difficult to prove the real driver. There is, however, plenty of circumstantial evidence to suggest that it...by: Ron Pol
Well I was renting a room off a guy in Torbay in a 5 bedroom house that he usually had empty, and he had a large empty plot just sitting there doing nothing up in Silverdale, and he was always going on about his capital gains. I know this is just anecdotal, but there's tonnes of underutilisation of land. We really need to apply a tax to land to really encourage productive ownership of it.
Claiming landbankers don't exist is the same as claiming there's no housing crisis. Suits their agenda, but is just not true. All land is under private ownership, and there's plenty not being used...by: Ocelot
Law firms hold all the information to our questions. There should be some legislation requiring them to provide information for statistical purposes. Law firms know who or what are purchasing/selling land, houses, building new homes. They also know where these entities reside and where the money is coming from. They already have to comply with FATCA so a few other question added to the bottom of their questionnaires should not be too onerous. In fact they do not need to ask the questions, they already have this information
by: Trying to build
$90,000 is a good start but it's only a small step towards affordability.
What we really need are measures in place that keep housing affordable for future generations. Possibly introducing things such as land-taxation, or anything that incentivizes densification.
It's been too attractive to invest in property in recent years, so you can't blame anyone who has. However, it's not too late to change this image so that property becomes much much less attractive. Then we might see some more capital flow to productive sectors including innovative technology startups, general research and...by: j3y
What else could they do?
It's one thing to take the theoretical position and say 'Open up more land', but beyond the land they have zoned much of Auckland's rural land is heavily fragmented, often of steep topography, or hard to access.
Please advise the large areas of flat, easily accessed land in one ownership or a smaller number of ownerships in Auckland's hinterland that should be freed up.
Auckland isn't Houston.
... I for one , am feeling much chipper tonight ... having had time to think over the new leadership at the top of the NZ Labour party ....
This is just the injection of adrenaline that the election needed ... it was a dreary wander down a bleak valley ... apart from an occasional shot fired from Winston Peters , or from Gareth Morgan .... but now , thanks to Jacinda & Kelvin , it's game on !
... the Gnats will be quaking in their gummies ... and so they bloody well should , after 9 years of doing sweet feck all because they'd prefer to be smiley-wavey-nicey-nicey rather than get...by: Gummy Bear Hero
This is great news, I was leaning towards the greens or even NZ first. I think jacinda can turn this around. They said trump and and corbym had no hope and look at what happened there.
Little was doomed leading into the election... Jacinda just could be the catalyst a glimmer of hope ,someone young and less jaded to save us from what was looking like another term for national. She has my vote I think some could be suprised at how many people are waiting in the wings for some kind of spark from labour.