Govt To Make 'Significant' Housing Announcement

[Perry]

Govt To Make 'Significant' Housing Announcement
Tracy Watkins
07/10/2013

The Government is set to make a "significant" housing announcement
this week as Finance Minister Bill English warns that the Government
is "serious" about reining in a rampant property market. English
signalled the upcoming announcement at today's release of the Crown
financial statements for the year ending June 2012.The release of the
accounts turned into a dress rehearsal for the next election, with
English warning that a change of government would put an improving
picture would be put at risk.

They showed the Government remained on track to post the first surplus
in six years in 2014/15 and confirmed the operating balance had been
more than halved from 2012 to $4.4 billion. This was partly a result
of a higher than expected tax take as the economy continued to grow,
and partly due to lower than expected expenses. One reason for that
was lower than forecast Canterbury earthquake costs.

[Shane D]

yeah why not...I'll throw my hat into the ring and make a few guesses

I reckon the government will offer incentives to property developers to encourage more new house builds. Could be along the lines of
- no GST payable on new builds
- reduced council fees or government subsided council fees.

I have a couple of big 1/4 acre sections that I am really keen to develop (Duplexes planned) and I have been standing by waiting for something along these lines. Though..I thought I would have to wait a couple more years when things got really desperate before the government would step in and sweeten the pot for developers.

Remember there are always side effects to any medicine. If either of the above measures were implemented ...then the price of big 1/4 acre develop-able sections would sky rocket overnight.

Then again, I could be completely wrong, but it's fun guessing .

Shane

[reepr]

+1 addressing council/consent fees.

+ restrictions on international buyers probably only allowing them to buy new constructed houses.

+ ring fencing rental income so it can't be offset against personal tax.

Can't see increase in government spending/subsidies like first home owners grants or subsidised council fees as this just ultimately adds fuel to the fire.

Shame the whole country will pay the price for strongly increased prices in Auckland. ( CHCH is a one off and won't affect legislation. ) The rest of the country is barely moving after 5 years of flat growth.

Ultimately the more they try and subdue the market, the bigger the blowout will be down the track. We are in a worldwide market, and NZ is still cheap in real terms with the likes of Sydney/Melbourne/London/N.Y. etc plus we are safe and a great place to live so prices will continue to increase until we are at a level that is commensurate with a world market. Unless we close the borders.

[Leftette]

Like most in-advance announcements proclaiming "significance" there's a better-than-average chance it'll be a damp squib. Something like a promise to offset the new LVR rules for 1st timers by offering further assistance - akin to state loans, or a promise to give some consideration to the idea that a meeting or two to discuss the chances of a report whose terms of reference include the possibility of a commission of inquiry to introduce CGT if National are elected next round.

[Harvey Specter]

Really? Some of you guys are giving National too much credit IMHO.

I would have thought it would be another round of subsidies to first home buyers. Thereby confirming there is no difference between National and Labour, National have no idea how to reduce house prices (aren't subsidies inherently inflationary?....) and also confirming National don't have the slightest fortitude to tackle council bureaucracy.

[speights boy]

It will be simply be another 2 or 300 sections opening up aka the recent Weymouth project.
Or the announcement of the exact location of the 'special housing areas'

[BigBadWolf]

As long as they are aiming to control the Auckland housing market without raising interest rates, they get my vote!

[Tan]

Shame the whole country will pay the price for strongly increased prices in Auckland. ( CHCH is a one off and won't affect legislation. ) The rest of the country is barely moving after 5 years of flat growth.

My first thought on reading this. I can't be the only one with negative to zero capital gain for years!

[speights boy]

As long as they are aiming to control the Auckland housing market without raising interest rates, they get my vote!

Well, you'd better hope the US pay their credit card bill due in 9 days.
If not, all bets are off little red riding hood.

[Davo36]

Bah humbug SB, if the US defaults, the world will shrug it's shoulders and carry on.

Yeah it will be a small announcement, like the first of the special housing areas in Auckland being announced or something. Some landowners on the fringes are going to do very very well.

[speights boy]

Bah humbug SB, if the US defaults, the world will shrug it's shoulders and carry on.

bigbadwolf was wanting stable interest rates.
My bet?
A US default; even for a week, and we will see the banks use that as an excuse why rates had to go up another 25 basis points.
Just like the oil companies when some dude in the Middle East starts up with the rhetoric again.

[elguapo]

A US default will see NZ rates drop.

[speights boy]

As Pauline Hansen was want to say....."please explain" ?

[elguapo]

Massive rush to safe assets. NZ ranks highly as a place with a very limited deficit and stable economy. In reality, I don't think a US default will be anywhere close to the drama people are making out. They have been 'soft' defaulting for years now.

[speights boy]

In reality, I don't think a US default will be anywhere close to the drama people are making out.

Nor do I, that is why I said "and we will see the banks use that as an excuse"
The US can pay of course, it is just they don't yet have permission.