National to double HomeStart grant to $20,000 for an existing house, raise new build grant to $30,000; Labour's Ardern steps up campaign with 'first 100 days' pledge

Sunday might well be called 'moving day' for the 2017 election campaign. Both National and Labour looked to set out their stalls with headline-grabbing announcements.

We were expecting a lurch across the centre line from National away from crime, drugs, speed limits and youth beneficiaries, and they duly delivered, with Amy Adams and Nick Smith announcing boosts to government grants for first home buyers.

HomeStart grants - which can be accessed by buyers with certain income and house price thresholds - are to be doubled to $20,000 for an existing house, and lifted to $30,000 for a new build, National announced. Smith and Adams said this would mean that, along with expected KiwiSavings and with Welcome Home Loans allowing for a 10% deposit, a first home buyer would be able to afford a deposit for a $600,000 house in Auckland without the need for any other savings.

National will also simplify the process for Welcome Home Loans, allowing eligible banks to just agree to give a person a 10% mortgage on the spot, rather than making the applicant go through the current process. Read more on Welcome Home Loans here.

The extra grants are expected to help a further 80,000 people into their first home over the next four years, on top of the 31,000 already helped by HomeStart, Adams and Smith said.

Then, on Sunday afternoon, Labour's Jacinda Ardern held a campaign rally in Wellington's St James Theatre. No new policies announced, but the much-awaited 'first 100 days' promise which seems to be expected for every politicial challenger around the Western world. Read the announcement further below.

Read National's announcement below:

National will make it easier for first home buyers to get a deposit by doubling the financial support available when buying an existing house, and increasing it for new builds, Ms Amy Adams and Dr Nick Smith say.

“National believes every New Zealander should be able to buy their own house if they want to – so we are building on our existing suite of measures to support first home buyers,” Housing New Zealand spokesperson Amy Adams says.

The changes mean a couple will be eligible for an extra $10,000 of Government HomeStart Grants, taking the grants to $20,000 for an existing home or $30,000 for a new build.

The additional grants mean there is funding to help a further 80,000 people into their first home over the next four years, on top of the 31,000 people the scheme has already helped.

Building and Construction spokesperson Dr Nick Smith says HomeStart Grants complement other Government measures to support first home buyers, including:

-       Welcome Home Loans, which allow first home buyers to access Government-backed mortgages with a 10 per cent deposit

-       KiwiSaver FirstHome Withdrawals, which allow New Zealanders to access all of their KiwiSaver funds to put towards a deposit.

“Take a couple on the average wage in Auckland who have been in KiwiSaver for five years and are looking to buy their first home,” Dr Smith says.

“Between the $20,000 HomeStart Grant and their KiwiSaver withdrawal, they will have around $60,000 for a deposit for an existing home.

“Add in a Government-backed Welcome Home Loan, which means they only need a 10 per cent deposit, and they have enough for a house worth up to $600,000 – the Auckland HomeStart cap for existing homes - without needing other savings.

“That’s significant support for those New Zealanders, particularly given 18 per cent of home sales in Auckland in the past year were below $600,000.

“If that couple lived in Palmerston North, they would have enough for a 20 per cent deposit on a $300,000 house, without the need for a Welcome Home Loan.”

Ms Adams says National will also combine HomeStart Grants and Welcome Home Loans into one HomeStart product, so first home buyers can get all the support available to them from one place.

“We will simplify the application process for Welcome Home Loans to allow accredited banks to approve these 10 per cent deposit, Government-backed loans on the spot – rather than going through an often time-consuming process with Housing New Zealand,” Ms Adams says.

Dr Smith says National’s policies are helping 200,000 new houses be built over the next six years – the equivalent of four extra Dunedins.

“We are increasing our support for first home buyers, and making it easier to access, to further help young New Zealanders achieve their dream of owning their first home.”

The changes will come into force on 1 January 2018. They are expected to cost $74 million per year, to be met from the 2018 Budget allowance. Costs in 2017/18 will be met from the between budget contingency.

Read Labour's announcement below:

Labour will take urgent action in its first 100 days in office to expand support for families and students, make rental homes warm and dry, find solutions to the mental health crisis and accelerate efforts to clean up our waterways, says Leader of the Opposition Jacinda Ardern.

“If we have the privilege of forming a Labour-led Government after the election, we commit to the following 10 priorities during our first 100 days in office along with a range of other urgent work:

· Make the first year of tertiary education or training fees free and increase student allowances and living cost loans by $50 a week from January 1, 2018

· Pass the Healthy Homes Guarantee Bill so families and all renters can live in warm, dry homes

· Ban overseas speculators from buying existing residential properties to help take the pressure off the housing market

· Stop the sell-off of state houses so we can better look after vulnerable families

· Legislate to pass the Families Package, including the Winter Fuel Payment, Best Start and increases to Paid Parental Leave, to take effect from 1 July 2018, so we can better support families, superannuitants and beneficiaries

· Introduce legislation to set a child poverty reduction target and change the Public Finance Act so the Budget reports progress on reducing child poverty

· Resume contributions to the New Zealand Superannuation Fund to help safeguard the provision of universal superannuation at age 65

· Set up a Ministerial Inquiry to fix our mental health crisis

· Take the first steps to clean up our rivers and lakes by holding a Clean Waterways Summit of all key stakeholders

· Increase the minimum wage to $16.50/hour, to take effect 1 April 2018, and introduce legislation to improve fairness in the workplace.

“New Zealand faces a clear choice on 23 September – another three years where we continue to drift and risk seeing the problems just getting worse, or do we embrace the opportunity to take action and build a better, fairer New Zealand.

“For the sake of so many left behind these past nine years, we can’t afford to stick to the status quo. Now is the time to make a choice so we can ensure economic growth goes hand-in-hand with greater equality and we can once again be a world leader, a country we can all be proud of.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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151 Comments

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Dr Smith - He's back - they've unleashed him

Danger Danger Will Robinson.

National are truly lost in space.

Labour policy of baning FHB will be more helpfull to FHB buyer than $10000 boost for a million dollar house.

Demand and that too speculative should be addressed.

This time Jacinda Government !

In most of NZ aka not Auckland, an extra 10k will go a long way for FHB's. It is a clever move, seeing as there are fewer commies in the regions.

Imagine if Labour had offered it, you'd be screaming bloody commies all over the place.

Bloody socialists or pragmatic realists? All depends on your emotional mix I guess.

However, one descriptor that would seem to apply--opportunists.

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"National to double HomeStart grant to $20,000 for an existing house, raise new build grant to $30,000".
For the Auckland market that government contribution in a drop in the ocean, far better to let nature take its course and let prices fall to affordable levels. Seems a bit of a desperate measure to try to win young votes, almost laughable.

How to help FHB's and NOT increase supply at the same time

Increase grant for existing homes by 100%
Increase grant for new builds by 50%

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Got to fluff that housing market, can't have it going limp around election time!

Blah, Blah , Blah ............we are all now sick and tired of this election and the constant steam of undeliverables being promised to a naive electorate.

Gone are the days of actual workable and practical long term policy ideas , instead we see wishlists and offers of quick fixes and short-termism .

The major parties trying to outsmart each other and outdo each other with all sports of prezzies.

Its nonsense

Well, to be honest, it's far easier to provide subsidies than it is to provide affordable housing. In the case SHTF, the taxpayer is playing back stop, even if they're not aware of it.

My God, these announcements from Labour get worse by the day.
All she cares about is trying to make the ones that contribute nothing positive for NZ equal to the average NZ er who contributes to NZ SOciety.
What will be the Flippen point doing anything if all she is going to do is tax people and give to the nillers who just lay,in bed and breed at the taxpayers expense?
Absolutely nothing positive said about improving productivity basically just trying to look after the lower socio class.
Worst socialist this country has ever seen!

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You're sounding nervous TM2

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We only hear from him now when some policy is announced that will screw his whole life over.

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When the Boy gets angry you know Labour have introduced measures to bring down house prices. Unfortunately for him his ever depreciating portfolio will depreciate even faster. I told him to sell down and diversify but he knows better. This should get Labour over the line. Many New Zealanders feel overseas buyers have helped increase prices virtually everywhere except Christchurch. A clever move on Labours part. It is all about perception. Labour is trying to help those left behind and National does not give a stuff about them.

@Gordon , anyone who has been "left behind " whatever that means , has only themselves to blame , bcause we all have had the same and equal opportunity

Its not the Governments job to build houses for everyone .

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That's not true Boatman - I couldn't control when I was born and when I was in a position to buy a house.....sure people of the same age as you, you could argue that point. But to claim that younger generations are to blame for the fact that they can't afford a house at 10 times income isn't a fair argument.

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Ironically Boatman is as fickle is in his perspectives as any politician he bemoans.

The property price in NZ is still low compared with some major cities. In Shanghai, Beijing or Shenzhen, some apartments were sold more than $20k per square meter (70 years lease hold). kiwis should try to buy their first home if property price is further down this time after (if) Labour win this election (I can't say how long the market will be up again) as in the long term the property price will still go up. Labour's policy (CGT, restrictions for foreign buyers etc) has no big effect in the long term.

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That is patently false. Your year of birth is a massive factor in the "opportunity" you've been blessed / cursed with.

So is your star sign!

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What about those entering the work force today in Auckland and facing ten times income loans. They were born in 2000. How can they be at fault?

@gordon, ten times income loan? Lol. It's 50 times in some major cities in China. That's why money comes to NZ, AU....

It would appear not for much longer, Cherrytree... sanity at last prevailing. Good riddance to corrupt money.

Maybe a few are from corruption but most of them from hard working and saving.

not much good if the door is closed

Labour-led government would ban foreign purchases of New Zealand property 'by Christmas', says Ardern

good - a real in-the-know-person from China - explain to us how they get more than $50,000 out each year - we want to know - is it money laundering

@two otherguys Do you think a person has a right to invest wherever he wants if that money was legally earned? Except for dirty money, I don't think it's money laundering. As for the $50k restrictions, they might get help from family members or friends before but now is considered by CCB as "Ants Moving House", getting harder to do that, but they still have a few ways if they really want to invest overseas. People called this is “As vicerises one foot,virtues rise toil"

Depends - do they have the right to invest it in buying land in mainland China? Or is it up to countries to decide who should be able to own land in their country?

No, in China all land belong to government. Even Chinese citizens can only buy the apartments with lease hold (70 years use of land), now government is considering how to do after 70 years as the buildings are owned by property owners. So that's why I said NZ property is cheap (most of them with free hold land). I agree banning foreigners buying NZ's farm and land.

If the knock on effect isn't detrimental to that country's population then yes sure, for example if they invest in growing local businesses or shares overseas. Buying houses all over the world has increased house prices to untenable levels - Canada, AU, UK, NZ all have seen massive growth partially driven by overseas speculation, this has had a huge impact on the fabric of those societies. Once enough people are impacted then Government tend to view it at a policy level (unless they're National of course), as it's a vote winner/loser, once that legislation starts hitting, the overseas market is the easiest to go after.

An unintended consequence of buying so much property here is resentment towards Chinese (and by default South East Asia in general), you only have to look at the rise of NZ First to see a shift in perceptions, read some of the commentary sections of Stuff to see where fingers are being pointed, despite the fact our home grown specuvestors have had as much influence on housing prices.

@solidname, yes you're right.

When you say 'the ones that contribute nothing positive for NZ' do you mean your tenants who are paying money to you for rent? I.e. your employers? (the people that pay you to provide a service)? I really wouldn't talk to my employers that way...they might make you unemployed one day for your bad attitude and poor customer relations...

These landlords are so unprofessional...slagging off their customers like this...unbelievable...

(This is of course tongue in cheek. But then again you claim that you're runing a business and your slagging off your customers. In any other profession, you' be out of business for talking about customers that way..)

Who's more socialist? Cindy or Nick?

well put MAN2, you know breeding is productivity too .. Maybe that is what Labour means by increasing "Productivity" lol

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I wonder if National have considered the connection between their policies or non-policies and the Auckland hyperinflated house prices?

or the connection between house prices and local councils... or low interest rates and banks and reserve banks globally.. the arguments o these forums are to simple minded...or global markets and capital looking for a return globally...

Exactly. Surely a right-leaning government should be aware that these subsidies on the demand side only serve to drive houses up? Is that Bill's real intent?

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The greatest thing I saw today was the sign at our local library saying that early voting could be done at 10 am tomorrow.

My well considered plan is to vote early - and then to shut my ears and eyes to any further political announcements and promises.

It is definitely time for a change.

I'm doing the same, albeit I'm not voting for change.

@Ex Expat I'm not voting for change , albeit voting on 23. :-)

Welcome. Are you new here or respawned?

I won't be in the Country on the day, so don't take this badly but I hope it is the worst possible weather to keep the snowflakes at home. Between that and my campaign to have them believe that signing a Stand for me on change.org is the same as voting I expect it will be enough to have Natiional scrape over the line on the day.

You might enjoy this as much as me. The Greens being trolled on FB

"Not a single one of your MPs is vegan, despite the fact that you're constantly making speeches about environmentalism and animal rights.

The likes of the FAO, UNEP and the National Academy of Sciences have made it clear that a number of serious environmental problems would be alleviated through a worldwide shift AWAY from animal products. The fact is that animal agriculture is an environmental disaster. From a practical perspective, you can't call yourself an environmentalist if you're not vegan.

More importantly, from a moral perspective, how can you call yourself a protector of the planet when you're choosing to exploit its most vulnerable inhabitants? This is a political party that claims to be fighting for the vulnerable, yet each of your MPs chooses to fund the enslavement and slaughter of completely defenseless beings on a daily basis. How can you say you want justice and equality when you're supporting the biggest, most violent system of oppression, underpinned by the most widespread form of discrimination (speciesism), that has ever existed?

You're politicians in the truest sense of the word. You talk the talk, but you don't walk the walk. How can you say you wanna change the world when you're not even willing to change what you eat for breakfast?"

@Ex Expat, I am new but have read news and comments from interest.co.nz for a while. Sometimes you guys are very funny :)

Welcome to the Joint :)

Welcome, Cherrytree. Great to have you here :)

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Corrupt National trying to boost house prices and debt further.

Should be banning foreign buyers like Labour if they really cared about struggling kiwis.

@ Brock Landers. Banning foreign buyers can only get votes for labour. Honestly I didn't know any buyers (with Chinese surnames) are foreigners.

I don't think they have the smarts

The election promises become more outrageous by the minute ..........does James Shaw have even the faintest idea just how many 1.200.000.000. of anything is, let alone that many trees which he wants planted?

WTF?

All I could think of was after planting all those trees where are we going to put the houses and roads?

Bonsai Trees

Gordon, sorry to disappoint but it won't affect us too much as we don't sell property that gives good returns.
What is so frustrating is these stupid things that she keeps spitting out to help out the lower socio people, to the detriment of everyone else.
Hopefully there are enough sensible people in NZ that can see that these promises have to be paid for!
The reality is that Labour really have no idea about running NZ and the support crew is extremely suspect.
If you want to vote for Labour and change because you don't think National has done a good job, then you deserve what you get.
Personally, won't affect us and if they get in I will live 6 months in OZ and not have to worry about the moaning ones on here that will regret what they have done!

That's the way. Vote with your feet. Like a political refugee.

Not a political refugee at all, JC.
Just can't beleive that enough people can not see the hollowness and stupid things that she is saying and are the most left wing and socialist that I have ever heard.
Who the hell does she think she is?
Mother Theresa?
A socialist dreamer.

Not a political refugee at all, JC.

I think moving to another country to escape "socialism" makes you somewhat of a "political refugee." Just be warned though, Australia is probably as "socialist" as NZ. You might want to go somewhere like Myanmar or Syria if you want to escape the scourge of socialism.

Stick to your pimples JC ...he is talking to adults , not you !!

She is one of those self entitled gen-x who grew up with zero exposure to actual poor people because if she had some experience she would know that poor people are actually lazy, greedy and stupid.

Clearly you have had none.

I will quote SKUDIV to ensure clarity because occasionally posts dont fit exactly where I wish them to be. "She is one of those self entitled gen-x who grew up with zero exposure to actual poor people because if she had some experience she would know that poor people are actually lazy, greedy and stupid." This has to be among the most arrogant and stupid comments I have seen on this forum.

...Is this satire? Or a sincerely held belief?

Heh. Ironic, given you got access to affordable housing because of NZ's history of governments fostering the supply of affordable housing options. We seem to have a major issue in NZ with people forgetting how much they've benefited from society and crediting everything under the sun to their own abilities.

Hey remember it's National that want you to help subsidize our Auckland house prices by keeping FTB's in the frame. We don't want us (Including DGZ and Zachary) to miss out on all that lovely capital gains. ;)

Quote: "Amy Adams and Nick Smith announcing boosts to government grants for first home buyers.
HomeStart grants - which can be accessed by buyers with certain income and house price thresholds - are to be doubled to $20,000 for an existing house, and lifted to $30,000 for a new build, National announced.".

Come on 'The Man' cough up, that's a good boy!

Will the Labour voters thank Jacinda when the day after the election landlords hand out rent increase notices, just in case rental increases are restricted under new Labour policies.

If what you are seeing is true why are you so angry? It is not true as your capital base is going down each month and is likely to increase in pace if there is a new government. No one likes to admit they made a mistake. You should have bought in Queenstown or Dunedin for example. If you were truly comfortable with you current position you would not be so angry with the current increase in popularity that the left is experiencing.You would not be throwing your toys out of the cot and threatening to live in Australia for six months every year. The reality if more people can buy their first home there are less tenants ( scum to you) and your values and yields drop even more. Must be scary.

queenstown will feel it if they ban non residents buying existing, a huge piece of it is owned by foreign nationals

You are in for a surprise - AU is a very unforgiving place

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National have failed to improve the housing crisis over 3 terms and have nothing but "rinky-dink schemes" to offer. Remember when they said this in 2007;

"Over the past few years a consensus has developed in New Zealand. We are facing a severe home affordability and ownership crisis. The crisis has reached dangerous levels in recent years and looks set to get worse.

This is an issue that should concern all New Zealanders. It threatens a fundamental part of our culture, it threatens our communities and, ultimately, it threatens our economy.

The good news is that we can turn the situation around. We can deal with the fundamental issues driving the home affordability crisis. Not just with rinky-dink schemes, but with sound long-term solutions to an issue that has long-term implications for New Zealand’s economy and society."

John Key, 2007

https://thestandard.org.nz/keys-powerful-speech-on-the-urgent-housing-cr...

So they are either liars, corrupt or incompetent. Either way they've had their chance to address this problem and they failed.

then the GFC appeared from no where, except for those who tracked mortgage bonds , and for the next 5 years house prices around the world did not rise. The housing crisis had disappeared. Your have quoted out of historical context for what ever reasons. The national government increased immigration to save the economy because new zealand has always been a poor performer. but it was far more successful then they ever dreamed. It is not only the fault of government for not planning on a dooming auckland but also councils who simply have been asleep at the wheel while pocking there lovely rate payer salaries.

accountingsoftw.- pragmatism and realties aren't discussed here, just "vision" and "we would have done better"

Thanks .. i agree

So National couldn't have implemented DTI's after the GFC like other countries did? Or assessed banking practices and made sure they stayed within safe limits? Or built infrastructure to go along with the increased population?

I think what they were focused upon was what most other OECD countries did'nt manage to avoid with their recessionary growth rates, double digit unemployment (youth 25-50%), house price collapses,- NZ's focus was in managing to get unemployment into the 5%'s, than 4%'s, GDP steady for years at 3.0 - 3.5%, and no 50% collapses in house prices which would have put everything into a tail spin - upside house price pressure was the least of anyone's worries until the last 2-3 years, and you aren't going to fix that overnight (of course Labour "would do better" and labour "would be fairer" right ?

You are cherry picking information. Very few countries saw anything like those drops in prices or rises in unemployment figures. The UK for instance didn't, and yet was much more directly affected by the GFC than NZ because of the huge amount of financial services they offer. NZ was only ever going to be moderately affected by the GFC because of both its geographical location and trade relationships (who were also much less adversely affected).
Also the inverse of what you are saying is that after the GFC because of National policy, house prices were held steady... so you are suggesting that they had some power and influence on the housing market? But that a few years later, that power and influence disappeared and they were unable to do anything? Why would that be?

I would argue that NZ's relative success after the GFC had very little to do with anything National did or didn't do, apart from continuing to allow very high migrant numbers, which similarly to the UK, helped to prop up GDP somewhat. But it's interesting that when you want to credit National with achieving something positive they are instrumental, but when they have failed to achieve what they claimed they intended to it's tra la la nothing to see here, excuses excuses.

As for accusing me of some weird mental powers of hind sight. No, I have not and would not suggest that Labour necessarily could have done better during the same time frame, facing the same conditions. I appreciate that maybe you, and indeed many, wed themselves to political parties, like the wed themselves to a sports team in some blind, subjective and tribal way, but I vote according to each set of circumstances at a particular time. I vote left, right, middle or protest depending on my assessment at election time. I think National have failed to address serious problems during their last 3 terms and been dishonest about it, to boot. On this occasion I would vote for change but in another climate, I might not.

gingerninja. Answer me this. From early 2000 under labour to now under national immigration level have been very high. From 2000 to about 2014 there was never any talk about auction rooms over flowing with Asians buying everything and this ghost house carry on. Then 6 to 8 months ago it totally stopped. Why as far as Asian immigrants over many years did we only have massive buying of Auckland houses over that 2 year period then stop and demand drop massively

Well, anecdotally, there is obviously a strong case that NZ has been very vulnerable and possibly seriously harmed by overseas buyers. However, not having been in those auction rooms or seen any ghost houses myself, I can't speak to it directly. I have only heard second and third hand. I don't personally dismiss that, I am inclined to think that capital flight has been a huge contributing factor. National didn't do anything about that either though, so that's a mark against them for either incompetence or corruption IMO.

High immigration could have been a massive opportunity for growth for NZ. If government had been remotely thoughtful about it, they could have legislated for the influx of new migrants to help pay for infrastructure, or insisted that those wanting to buy investment property, build new houses, rather than hoard the existing inventory. The "infrastructure tax" let's call it, could have gone towards training schemes for trades, towards public transport solutions. Or a rule that overseas investors could not buy existing houses but invest in local businesses.

So the main reason Auckland had the massive lift in demand or started it over the 2014 to 2016 period when we know immigration has been the same ether side of those period is the exiting of money out of China . Which has mostly been put to a stop. And here we are today. Then the Chinese government announces they are making there people invest in there Silk Road and John key sells his house to a project to do with the Silk Road and before any ruling of investors being stopped buying second hand houses. National has played the nzers and now we crush why'll key and I guess his mates and his trust makes millions

once again, you arnt going to get governments run by accountants increasing debt after a near global collapse of the banking system. Only labour governments do that, you are expecting far to much!! its like saying i would have bought that stock if i had only had a vision of the future... the last labour government ran out of ideas as well and new zealand moved into recession long before the GFC.... people have sort memories... clark was hopeless and so was cullen... there is no perfect government...

.

An additional problem turned out to be that while in opposition they believed that the housing crisis was a bad thing, once in power they denied any crisis existed for the next nine years, often said it was a good thing that house prices were going up, and failed - well after that first five years - to address the continuing housing crisis that everyone else seemed to be able to recognise.

They've suffered from their unwillingness once in power to acknowledge what they were yelling from the rooftops when in opposition ("Crisis!"), and to take any meaningful action to address supply AND demand issues in the many years they've had available to them. They've been caught out by their sometimes quietly stated view that the ever increasing bubble prices are actually a good thing.

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So they want to use taxpayer's money to subsidize banks and property sellers by encouraging first home buyers to buy past the peak of the huge bubble and risk themselves being soon in negative equity.
Why not to ensure prices fall to reasonable levels compared to income? Ah right, they don't want to upset any potential voter.

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Foriegn buyer even if for argument sake, we agree is 4% (though is much more in realty and this 3% or 4% is as is manipulated as to how you take the data to get the desired result to suit National government) than also controlling it will stop big jump and money laundering.

People who are in market knows the reality so does real estate agents when you talk in private so does the experts and media for if not true than why the headline about effect of Chinese money in NZ, Canada......

Stop being lied and manipulated by national ( who never talk of tacking demand side of the problem but only about supply as even in that will help more of their rich friends by giving opprtunity than FHB as even those houses that are being built are not affirdable).

Think and Vote as people have got one opportunity to humble the arrogance and liars.

Promote and support vote for change. Election time.

Never going to vote Labour. But on this one they don't go far enough. Property purchase should be limited to citizens. Allowing it to permanent residents just opens the wayt to anybody just moving through.

National will never close the floodgates or provide a foreign buyers tax to prevent money laundering, that would stop their false economy that they've been nurturing all these years. Only Labour are the ones supporting the foreign buyers tax!

Well at least RBNZ will be hitting or exceeding their inflation target with Labour. Higher taxes, higher food/essentials prices, higher inflation, higher interest rates, house price plummets, people defaulting on debt, recession. People lose jobs, more people on welfare, exponential increase in government debt with super age still 65. Meanwhile dole bludgers making even more dole babies due to free $hit they are getting and the government still trying to "fight" child poverty. Am I being too cynical of Labour? Surely they've thought this through and what I've outlined above won't happen?

As opposed to landlord bludgers who effectively rob hardworking Kiwis of their money. Not too dissimilar to what you are accusing Labour of going to do right? Taking money from hardworking people to give to bludgers (landlords) ay!
PS remind me one day to tell you the story about Trevor, the pro Mugabe, Zimbabwean commentator... a true story and not too dissimilar to the pro-National ones out in force with stories of devil Labour policies and child eating candidates.

Blue meanie - out of interest what do you base your opinion on that landlord are bludgers ?

Maybe just those that pick up welfare from the public purse via accommodation top ups so they don't have to meet the market

My comment is to all the National supporting landlords who keep accusing Labour of taking their money unnecessarily, I am pointing out the irony....

But to answer your question, I get it from the comments that are posted on this site from Zac.DoubleGZ and Ecobird/tothepoint and boatman and keywest and and and... They 'bludge' money from hard working Kiwis by constantly ramping up rent and gloating about it. Even having the audacity in saying their tenants 'like it!"
I know you as a banker see this as a legitimate investment but most landlords don't care about the hurt felt by a sudden $250/month rent increase every six months, especially when the government has opened the door to hundreds of thousands more immigrants, but restrained the housing build process. (why they have doen this is a whole other conversation). I see the shrug of shoulders and curl of the lip and the comment from landlords, "if they can't afford it, someone else will."
Like Wilson Carparks, most landlords don't contribute much, pay zilch tax and are only interested in their wealth. This self entitlement only increases in the current housing and political climate. It can't be that hard for you to see that...? And also to explain the main reason for the massive swing away from National, who sat on their arses for nine years and looked on like Cletus Del Roy Spuckler from the Simpsons

"explain the main reason for the massive swing away from National" - that is the question that needs to be explained, there has to be a reason but I doubt National supporters will ever be willing to answer that question because it means they will have to examine the flaws and faults in Nationals last nine years in government . Only perhaps in hind site will they admit their faults but I'm not holding my breath.

Nine years Baby, they had nine years and the only thing the have done of any significance is in th last four weeks. Get rid of the useless bastards!

Blue meanie. I'm 57 and can't remember ever seeing nz have such a short boom. Auckland 3 years and the the rest of the country only about a year and a half and definitely so high and so much dept . So many people have played the market so quickly it's mind boggling. I can't count how many times I've seen the same house sold in one year. I can't believe the denial on the comments on this site. Other than overseas investors, local investors pushed these prices up so very fast. Anyone holding property are in for a big shock. They can dream on about the word crisis or shortage or LVRS or the new government replacing state housing and selling some but demand with affordability is going to rule and there's no stopping that. Scary considering the shortage of demand for these prices today are a mile away . Investors need to think about there risk and FHBers need to think about how much they can save by waiting remembering FHBers are a very small % of demand anyway to save a downturn of this size

..wise words.

Sadly 04 Normal it's going to get a whole lot worse before it gets better.

Hi meanie, I am not a meanie, I respectfully look after my tenants, fix their bathrooms, fix the Boilers, fix the fence, windows, door handles, pay their rates and insurance, pay the interest cost of owning property, pay the fixed charges of water rates, pay for painting and maintaining, I have never had a property unrented for one day, have never been taken to tenancy tribunal, although I have had to take tenants to tribunal and get paid $8 dollars a week in lost 3 months rent unpaid, have lost $800 dollars from a school teacher who stole my bond, have had to clean vomit from the carpet and somehow get the whiskey out of the lounge room table after it sat all night in a puddle. Have had to apologise to Neighbours for all night parties held etc I did have one win where one of my tenants moved out to buy their own property - fantastic! All the other tenants are happy to stay on as don't want to buy for whatever reason, all my contracts are evergreen so they can stay indefinitely with small rent increases. I am your typical landlord, and you're welcome.

So why are you in property if it costs you and if your tenants are so awful? Martyrdom? I call 'nonsense!' You tell me you are are a caring landlord, but what you say on this site would indicate you are not. That could be bluster and you actually are in th 5% who actually care. I somehow doubt it. You are there for one reason only, profit for yourself and you make that moneyy off the backs of hardworking people coming cobbled by a system rigged by your mates. I tell you what. I'll give you a challenge.
As you were so incredibly smart and bought your rentals when they were at least 50% cheaper than they are now, I dare you not to raise the rent, till your tenants salary rises 100% from the peak capital gain in August last year. So, if your rental cost your 350k and is now worth 700k. Only raise the rent when your tenants salary of 50k in August 16 is 100k in National's distant future of salary growth. I bet you won't and I bet your "small percentage" is someone else's hurting percentage.
Better still, sell your 350k house to a FHB for 400k. So they can be as clever as you and be considered as having the same lucky breaks as you did.
Yeah right, I know. Somehow your timing in life makes you really really clever ay?

Blue Meanie,

Your comments provide me with some mirth. I am one of those who worked hard, and saved by not purchasing the silly stuff (I've not owned a television in 30+ years). I also rented for 10 years, as this was the financially prudent thing to do in the places where I lived. The house I rented for six years in Hawkes Bay, well the rent increased by 2% during that time. Turned out that the house price increased by a similar amount. I made more money via term deposits than the landlord did via renting to me. I think that clever is as clever does...

Term Deposit rates are too low and high risk these days due to the high personal debt levels carried by our younger generation home owners.

Well, I have to say that I purchased a home 1.5 years ago...

I'm not impressed with TD rates vs reward nowadays. That said, I am still continuing with using TD for the majority of our capital, as I haven't yet found a lower risk/reward solution. The recent home purchase... well, that is a personal decision of which appreciation is only one aspect, and the purchase represents a only small portion of our overall capital. The ten years prior to the recent purchase were certainly better served via renting vs owning. The twenty years prior to that, well, we owned a home from 1986 to 2006 and did very well in both the purchase and the sale. Whether our prior decisions on home purchases and sales vs rent decisions have been luck or wise choice... that is subject to discussion.

Hi Yamkiwi, so that was my point. In Auckland, some houses are up 300% in 6 years. Most have just doubled. Most landlords have price gouged their rent by at least 50%. That is an extra 12000 a year on an average rental over 6 years. Most people's salaries haven't come close to increasing that much.
So in a rigged market, where even top income earners can't afford a home. The lucky few who due to their age were able to buy cheeeeap in Auckland are now double dipping on both capital gains and bludging their hard working tenants in mostly substandard homes by hiking rents every six months. All this because the National goons couldn't manage the absolute basics of running a country. But you've got your house now, who cares about the ones that don't, right?

Blue or red, green or black, a recession is on the cards no matter who is in power. The questions to ask are "when?" and "how bad?" We've already had two quarters of negative GDP per capital growth, so it's potentially already started. Throw in household debt outstripping wage inflation, China's capital flight restrictions and NZ's mediocre productivity and low wage economy and we have one hell of a lethal cocktail.

One more quarter of negative growth equals RECESSION by the governments own standards. The thing about recessions, is that nobody knows about it until that last third quarter is reported. It looks like we are well underway. Jacinda hit the nail on the head about our lacklustre productivity levels. Interesting that Winston Peters was on Radio Live today and he asked why our government has approved visas for 10,000 immigrant chefs when we only have 9000 restaurants in NZ? The answer: Because they are working the system to their advantage and know exactly how to get their working visa approved.

Meanwhile dole bludgers making even more dole babies due to free $hit they are getting and the government still trying to "fight" child poverty.

There is a shocking level of stereotyping of folk who receive the benefit in NZ today. Seems like more than in the past. These "bludgers" include the likes of Paula Bennett and John Key, you know.

What is NZ coming to?

And don't forget, over 50% of our beneficiaries are receiving a universal basic income we call "Pension".

" These "bludgers" include the likes of Paula Bennett and John Key, you know " - well .. if you are referring to them having ( legitimately ) been on the benefit in the past you are branding every beneficiary a bludger.
Usually the term is applied to those abusing the system - like MT.

They are classic examples of people who were allowed to get out of poverty with a welfare ladder, then kicked it out from underneath everyone else.

The term usually seems to be applied to all and sundry when typed out here.

How many people do you think abuse the benefit? Any numbers?

Subsidies always end up being capitalised in land values. What is the point?
If any party seriously wants to bring down house prices, it needs to start taxing land or capital or wealth and restricting access to credit for debtors with limited income.

Yes, would it be too cynical to see this as yet another in a long line of subsidies ultimately flowing to property investors?

I can only think that National's target market for this policy are First Home Sellers not First Home buyers. With a few gullibles sucked in as well.

Govt data indicates 'foreign' buyers are well under 10% of all sales. We all know that's bollocks but the challenge is how to identify the rest who are using subterfuge to buy. Will Twyford's Chinese sounding names test be introduced, trained interrogators to compulsorily accompany all RE agents when closing sales or perhaps a follow the money audit for the thousands of buyers each year who are related to someone who doesn't live here?

Would be interesting to know important details such as this but questions like these are probably deemed impertinent at Labour HQ, so like the media I'll just meekly await the foreign buyer secret committee announcements on how it will work.

Shrewd politics really.

"Govt data indicates 'foreign' buyers are well under 10% of all sales. We all know that's bollocks" - evidence please ?

There is no hard evidence. But that doesn't mean it's not true.
The problem is foreign buyers are working through local 'fronts', so it's very difficult to get data on.

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The optics are hopeless - nationals headless chooks strike again

1: National increase Homestart Grant by $10,000, by 100% for existing homes, 50% for new homes
2. Labour bans Foreign buyers from buying existing homes
3. Which of the 2 plans above has everyone been calling for over the past 9 years

Problems

1: Australia tried increasing FHB Grants and found they were simply added to selling prices. Australia discontinued the Federal Grants 4 years later

2: You would think if the grants worked the way intended it would support Nationals "supply" philosophy if they increased the existing home grant 50% and the new build grant 100% instead of the other way round - dumb

Which plan looks better
Which plan will decrease prices
Which plan has been throught through

Throwing money at a problem never solves it, but creates more problems..Economics 101.

How much roughly is a new and old home in Auckland. Is it about 1.2 million for a new and $800 for old. So a FHBer needs some $300k or $200k deposit and a mortgage of around $900k or $700k for a older home. Nz and Ozzie have played around with helping FHBers for years and yet from the low of 2008 to 2012 and many more lows helping FHBers is a good thing but hardly stops a downturn because the real problem is rarely fixed from the growth of a boom then its bust. Put it this way. During a bust there could be only 10% of demand than during a boom. Why is this . Dept levels. Capital gains gone. Others like allowing something then taking it away like overseas investment. Wages (unaffordability) . Etc etc. We're now at 30 year mortgages and new homes are only a reality in a boom or the richer when we try to put FHBers in new houses but it's getting impossible. We are at a braking point. In reality 10 years ago low median and high income earners could barely afford in Auckland but they could. Could a FHBer or teacher or police officer or doctor etc afford houses from $800k to 3 million. These prices ONLY came to Auckland because of overseas investors and money and cheap money encouraging large capital gain. We well be lucky to get a very small % of demand to stop a crush. Could demand pickup enough to stop property prices dropping. At the end of the day who's left to buy. Locals and they're mostly FHBers for a number of years. Flippers gone. Overseas investor gone. Mum and dad investors gone. All this didn't have to happen and could never have lasted. Come on ,the Chinese after the GFC decides to buy out other city's around the world to they pop. Yeah right. Even if national were to stay in power it would have ended and already has. VOTE FOR CHANGE so this stupidity never happens again

You can buy a new house for 600K in Auckland. I don't usually read your comments O4 normal. Indeed I just read the first sentence of this one and got no further.

I'm usually not much in agreement with you ZS... In this case, I'm still not in agreement. It took me two sentences to understand a basic fallacy. The typical FHB is NOT buying a median house. Ussuming a median house purchase for a typical FHB is a bit silly. The large majority if FHB purchases are in the lower quartile, with a very few in the upper two quartiles. Using the median home price assumes that as many FHB purchases are in the top quartile as the lowest quartile. What are the odds of that happening?

Gordon, it has nothing at all to do with our own financial position.
We are fortunate that we don't have any financial pressures and won't at any stage, although you will doubt that!
That offer is still on the table Gordon.
Yes pissed off because this new Labour Party leader of 37 years of age with very little life skills, and financial nous keeps opening her mouth and talking crap about what she will do for the people of NZ.
Better this, better that, free this, cleaner water etc.etc. with absolutely no detail or substance.
Suckers are believing her like a cult following but if she gets in to power then god help NZ because he will be needed to sort things out.
The support crew for Labour are a real mixture with very few being able to offer the country very much.
Yes we will live in Oz for 6 months or so to get away from the crap that will be going on.
NZ already has too many giveaways and with Labour in power then things will be worse.
Problem is once they are in power it is going to be impossible for,the next National Govt. To bail NZ out as they will totally have stuffed it.

I thought you were full time professionals. LOL. If you lived over there who would look after your as is where is portfolio. If one of your tenants ( low class scum to you) wanted a leaking tap fixed would you fly back?

You're going to live in another country for half the year because you dislike the potential new government? That's petty. You'll find the "crap" of the left will be worse in Australia. "Man taxes" in cafes, third wave feminists on university campuses and so on.

"NZ already has too many giveaways..." - I agree. Remember how WFF was "Communism by stealth" and then National increased it? What about the evil Accommodation Supplement that's a taxpayer handout to landlords such as yourself? What about National's pathetic FHB subsidy or tax cuts? A taxpayer funded subsidy to landlords for home insulation for rental properties is a handout, surely? Shouldn't you insulate your rental stock out of your own pocket?

Do you think all these handouts from National are bad? If so, should they be removed despite the fact you landlords benefit from all of them? Since Labour is so awful, could you name some good things National has done since being in power?

Too little too late Labour, the horse has bolted and money and buyers are already here !! this policy will fool no one ...Well, almost no one !

Watch for a rush of foreigners to snitch every 4-6 bdrm mansion ( designed for chinese) and quality houses and apartments in Auckland city before Xmas - some parts of the market is going to boil over again !!
thanks Jacinda !

Wow it was Jacinda who designed and built '4-6 bdrm mansion ( designed for chinese)'?!
That is a long bow to draw

Ahhh, the good old FHG. Introduce a FHG of 100k, house prices rise by 100k overnight.

Not only does it not tackle the demand side issue by lowering demand it instead has the opposite impact of increasing demand and therefore increasing prices.

Are these people actually that stupid that they believe their own hype or is this just a cynical attempt to inflate prices further?

They need to bring the minimum to $800k for Auckland

Sir Chong Kee will have intimate knowledge. The guy played NZ like a teenage trout

Gordon, we currently have one of our kids on the payroll.

You are an agent. Says it all really. He or she maintains as is where is properties. Says even more.

Gordon, ex agent.
The 2 as is properties are fully tenanted and nothing wrong with them, so not sure what the heck you are on about.
Properties will get insurance no problem and probably nicer than yours anyway.

The Boy once an agent always an agent. No wonder you think tenants are low class scum.

God you talk rot.
We respect everyone of our tenants, otherwise we would not have taken them on as tenants.
If they don't check out excellently then we don't house them.
Yes we have had many tenants apply for property but haven't checked out very well.
Don't know why you use the word scum for tenants, Gordon?

The FHBer Grant in Aussie actually made sense when it first came in - it was a way of reimbursing FHBers for Stamp Duty on their first purchase (or part thereof, depending on how much the FH was). But it's morphed into a grotesque subsidy/bribe with obvious outcomes. New Zealand can't even pretend that it's anything but the subsidy/bribe as we don't even have SD to offset.
Still, for National, I guess desperate time call for predictable measures....and the losers will be?.Not National...but.....all of us.

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National is loosing the plot, giving away more money doesnt help affordability, they are guilty of doing exactly what they accuse Labour of doing, being a welfare state.

It could be argued that these handouts push up prices as NZ buyers tend to work out the maximum they can spend before going house shopping, meaning there is an extra $10K to bid or negotiate with.

Its a total admission of failure and shows their inability to do anything with affordability.

Yes. They are totally bereft of ideas and energy

Another dreary looking wet day. But it matters little...the die is caste, the pendulum has swung...only a few weeks left before the crooks are in the outhouse. The sun is out.

and Daylight Saving begins on election night - bring it awnnnnnn.......

So much for Labour govt being awful for business:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1192...

Daylight Savings, is when the debt level really comes to light.
Leveraging ones ability to prosper, is a bit like a flat coca-cola, pop....when no fiz.left. Flat as a pancake.
Giving Grants for our children's sake, is a bit like Japanese Sake...takes plenty of "Bottle"...as Japan is in crisis, more so than most, because of their debt binges of OLD....
Maybe we should encourage our young to fore go the over priced pleasures and get back to a little reality.
A mortgage is a mill stone around ones neck, even when as Taxpayer, with no mortgage at all, one is robbing Peter to Pay Paul, to pay 'any Rental Deduct er...MAN...with skin in the game'

It ain't all about houses...but it is all about keeping the Bubbles from popping....Coke is needed to keep the fires burning....Daylight Savings, may be not as warm as one imagines.....Icy, it may be.. it is a slippery slope. owning houses, with someone else assisting ones future commitments.
Sometimes it is WORK that is needed, not debt to forego the previous debt, before dishonor.
Work and Income....who ever....it is still a millstone, not a right-off...when you see the Daylight Savings....coming soon to a Country that first sees the ...LIGHT.

Maybe better to be kept in the dark a little longer...till after the bleedin election. results known.

Is that you, Gummy Bear Hero? :)

https://www.bloomberg.com//news/articles/2017-09-10/china-s-latest-bond-...

Building a bright new future...the new Bond movie from overseas interests. Might be a flop.

I for one, as a taxpayer, am thrilled that National have decided to give first home buyers $20K of our money so that they can go to the bank and combine it with an extra 60k of leveraged debt to be handed over as an 80k First Home Sellers subsidy, and this well thought out policy goes into turbo charge when that First Home Seller can take that extra 80k to the bank and turn it into 320k to hand onto the Second Home Seller.

Morons.
Rising prices 4eva! Yeah!

One wonders how many of those that buy into the market using these subsidies in coming months will end up with negative equity.

As a potential 3rd rung on the property ladder. House is too small and spouse ahs now returned to work after several years on a single income.

Am I looking at potential increases of 20K x 4 = 80k, x4 = 320k, x4 = 1,280,000. Because of this stupid subsidy?

Is Bill & Nick's policy about to inflate that typical 900k 4 bedder house I am looking at up to 2,180,000?

I really can't put into words how much this makes my blood %^&$ing boil.

One day - I don't when, but probably not later than 3-4 years - China will have a 'Lehman Brothers moment' - and their economy will fall to its knees.
Just like the Japanese crash, Chinese will sell foreign assets en masse.
Housing markets in places like NZ, Aus and Canada will crash.
We've seen it all before.

Its analysts studied 43 large credit booms and found that almost every single one resulted in a sharp slowdown or a financial crisis.

“All credit booms that began when the ratios were above 100pc - as in China’s case - ended badly,” the researchers found.

http://www.telegraph.co.uk/business/2017/08/15/chinas-debt-boom-could-le...

But this time it's different!!!!