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The next mistake in housing policy - a must read

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  • The next mistake in housing policy - a must read

    Hi All,

    Here is a quick summary of what is in this white paper - which is worth reading in full.

    Gov't failure to properly identify the problem with the housing market i.e. lack of supply. Instead of focusing on the constraints to development e.g. remove the 'red tape' of the RMA, and constraints on direct foreign investment they have taken measures in an attempt to curb demand - i.e. stop property investment.

    demand-side measures, including:
    • ending depreciation on housing for tax purposes;
    • imposing stringent loan-to-value ratio restrictions, which are now particularly onerous for investors;
    • imposing and then extending the bright-line test;
    • ending the ability to offset losses from rental activities against other forms of income for tax purposes;
    • banning foreigners from buying most types of homes in New Zealand; and
    • imposing new regulatory burdens on landlords.
    Despite measures - house prices increased 20% in the last 12 month.

    Increasing costs for landlords means that at any given rental price, less rental accommodation will be offered to the market – supplying rental services is after all voluntary.
    Ah a solution.....but unfortunately it's one that is not available in the short term or ever under Labour.

    Expanding the potential supply of rental properties so that landlords face stronger competition for tenants would alleviate the housing shortage and facilitate better functioning rental markets.
    cheers,

    Donna
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  • #2
    IMOH rent control could have been one of the measures (not the only one) that this puppets could have put in place instead of the no sense they done. This would ensure fair rules between investors that aren't speculators (looking at the long term - passive income, pensions etc. versus short speculative gains, that aren't helping anyone in this country) and tenants that know they will never want to or be able to buy/afford a house.
    I have to admit after many years here (12sh), I am still puzzled about how kiwis haven't decided if they want to be true socialist and implement a real social security for everyone not just vulnerable (e.g. a real pension and services for the future not the joke called kiwisaver etc.) or they want to be governed by the "free market" and have everything treated as commodity (dairy, timber, meat etc.) where you pay international price while totally destroying the environment. You can't have both, and you have to decide (in other part of the world when goods that produced internally are in demand internationally their internal price is protected for a given quota). The only reason I entered the property market was to secure my future, I don't fancy the idea to be working at the warehouse or countdown when I am 70. I will be quite happy to exit the market at the sustained cost if any of the current or future puppets could guarantee my pension at 80% of my last yearly income from work(not game of any sort).
    Last edited by FASATRIX; 30-04-2021, 03:59 PM.

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    • #3
      Why no mention (in that list) of the recent big nasty: no longer able to claim residential rental interest costs against income from that same business? (It does eventually appear on page four of the housing policy paper.)

      Isn't a "white paper" racist, elitist, euro-centric and suchlike in today's utterly stupid wokeist world?
      Last edited by Perry; 30-04-2021, 04:25 PM.
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