PM announces new incentives for first home buyers

[grip]

Changes will be made to existing rules on how to qualify for a Government subsidy under the Kiwisaver schemes and the Welcome Home schemes.


In order to currently qualify for Government assistance of a $5000 deposit, the most a couple may jointly earn is $100,000. That threshold will be increased to $120,000.


The house price caps will be adjusted upwards as well, with the Auckland cap of $400,000 rising to $485,000.


The $400,000 cap in Wellington and Queenstown will rise to $425,000.


The $300,000 cap in Christchurch will rise to $400,000 in Christchurch and Selwyn; while 10 other regions have the cap lifted to $350,000.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10911079

[speights boy]

That's it ?
Yawn.

The family of five who have just sold their home in Palmerston North to move to Auckland on promotion will be thrilled.

[grip]

Apparently the numbers will go from 850 to 2500 per year.
Won't solve the housing crisis but would make a small difference for a few.

[ammar]

Just make it easier to build more houses and all the problem is solved

[Keys]

That's it ?
Yawn.

The family of five who have just sold their home in Palmerston North to move to Auckland on promotion will be thrilled.

Ummm.

Did you not read the thread title?

[speights boy]

Yes I did Keys.
This was however the first nz herald headline and link posted; subsequently amended to what we see now.
Govt tackles affordability

But yes, I was being somewhat mischievous.

I was simply making the point that people in the situation I posted are often forgotten about.

[Wayne]

YI was simply making the point that people in the situation I posted are often forgotten about.

The thing that everyone (except ammar) keeps forgetting is we need more houses not ways to try to afford the short supply one now. Whe supply = demand the price will come back into wack and 1st home buyers will be better able to afford something (if they cut out the coffee's and extras).

[speights boy]

The thing that everyone (except ammar) keeps forgetting is we need more houses not ways to try to afford the short supply one now.

Some seem to be of the opinion it is just too attractive an option to own lots of houses.

Stagnant rents give lie to housing strain

The dearth of houses on Auckland's property market has been interpreted as a housing shortage.
But there is a big difference between a shortage of houses for sale and an actual accommodation shortage.

So economists are beginning to put forward a new theory for Auckland's shortage of houses for sale.
While no-one disputes the city is short of new housing, there is a growing suspicion that property owners are also not selling in the hopes of greater gains further down the track.

This could explain why renting is not such a problem in Auckland as some would have you believe.

www.stuff.co.nz/business/9028881/Stagnant-rents-give-lie-to-housing-strain

[eri]

The Government recently announced measures to help first-home buyers by increasing the availability of subsidies as well as changes to the Resource Management Act, which it says will make homes more affordable and lead to more being built more quickly.
........................
Auckland University real estate research unit director James Young, who argues New Zealand houses are not unaffordable because people are still buying, goes as far as saying state policies never work.
"I haven't seen any that really worked in the long run . . . In the long run they create more problems than they solve."

http://www.stuff.co.nz/business/money/9032745/Three-more-years-of-housing-heat-tipped

[NovInvestor]

The policy is intended to give the public a perception that National cares about first home owners and is doing something about it.

Good perception = votes

[speights boy]

The policy is intended to give the public a perception that National cares about first home owners and is doing something about it.

The policy is intended to give the public a perception that National have no idea how to slow down the rate of Auckland house price inflation before the election; and are not interested in doing anything about it.

Here's a hint.

ASB reveals record profit for third year in a row

[NovInvestor]

The policy is intended to give the public a perception that National have no idea how to slow down the rate of Auckland house price inflation before the election; and are not interested in doing anything about it.

Here's a hint.

ASB reveals record profit for third year in a row

Yeah hence I'm voting for National ;-)

[speights boy]

^ Would the removal or reduction of IP interest deductability in next year's budget change your mind ?

[Keys]

^ Would the removal or reduction of IP interest deductability in next year's budget change your mind ?

I thought that swearing was banned here!

[speights boy]

Quite right Keys, and so it is.
Some indecent musings.

Key's assistance to FHBs will have little effect.
They will struggle to find loans.

Anecdotal evidence is parts of AKL rental market is soft, or flat.
Who is buying the housing stock; or indeed not selling when they upgrade from their first or second home ?
Who is leveraging rentals to a high level, including shifting debt from PPOR to IP for the tax deductions?

IF, come May next year, house price inflation is still high, loan availability is still difficult and the opposition is scoring points on behalf of FHBs.......?

When the leverage and interest tax deductions in use by LLs with multiple rentals is compared to the FHBs; expect the unexpected in an election year.

Just musing.