KiwiBuild - Labour's latest spectacularly stupid idea.

[Don't believe the Hype]

Easter Bunny... Tooth Fairy ... Santa... Kiwibuild

[Don't believe the Hype]

4000 rent to own properties to convert some of the 600,000 rental properties into owner occupied properties - only this government could focus on 0.67% of the rental market

[Don't believe the Hype]

any idea what happens when the shared equity owner starts to fall behind on their mortgage payments?

- Will the government take on the payment in order to not risk their 15% equity?
- Will the government foreclose on the tenants and take back the property?
- Will the government give up their 15% equity to the bank who forecloses on the majority owner?


Perry - chalk up this prediction of an increase in mortgagee sales in 5 or so years after this project gets underway

[McDuck]

What stuns me is that I, along with almost everyone else involved with property, pointed out that they had no chance of implementing their plans.

We were then abused, vilified, accused of being ignorant and selfish, and told we did not know what we were talking about.

Seems we were right after all.

Greetings barbarians.

Landlords and quick buck Johnnys have always been vilified.

To be honest, the senseless masses will vilify almost anyone or anything for the most unreliable of reasons.

So don't feel singled out.

As for this whole Kiwi build thing, yes, once the wide public infrastructure was dismantled (some say by Rodge the dodge), then it was never going to be a short road to reactivate it.

Possibly the selfless behavior and group coordination, practiced by New Zealanders during the second world war, were a crucial ingredient in the building of people of character - who could do things effectively.

A clear vision and a bunch of primates working together is what you need.

At the moment each generation has a different goal.

Get your monkey business together people!

[artemis]

any idea what happens when the shared equity owner starts to fall behind on their mortgage payments?

- Will the government take on the payment in order to not risk their 15% equity?
- Will the government foreclose on the tenants and take back the property?
- Will the government give up their 15% equity to the bank who forecloses on the majority owner?


Perry - chalk up this prediction of an increase in mortgagee sales in 5 or so years after this project gets underway

Good questions (and good prediction).

There is an official fact sheet on 'progressive home ownership' at the below link. The term 'fact sheet' is used loosely as there are actually no facts in it at all. There are however example references to the third party that will be providing part funding (no rent but share in capital gains if any) or discounted rents without saying who those parties might be. Maybe charitable providers that are probably part funded by the taxpayer. Or the government, funded by, you guessed it. Or private sector owners. I guess they'll be lining up to receive no or discounted rent, and maybe remain liable for future issues.

There are no details yet, of course.

https://www.hud.govt.nz/residential-housing/changes-to-the-government-build-programme/

[Don't believe the Hype]

Thanks Artemis

I would assume that once you sign a rent to buy you're now responsible for maintenance and accidental damage caused by the tenant (i.e. you)... if this is the case I can see some upside in the reduction in cost to maintain these houses and fix the damaged caused by these ex tenants now owners.

[artemis]

Thanks Artemis

I would assume that once you sign a rent to buy you're now responsible for maintenance and accidental damage caused by the tenant (i.e. you)... if this is the case I can see some upside in the reduction in cost to maintain these houses and fix the damaged caused by these ex tenants now owners.

And if there are maintenance, damage or rent arrears issues? What use is the contract then to the third party's share if the property degrades or the mortgage is called in? There may be a government (taxpayer) guarantee and good chance a private landlord / part owner working through that will be tangled in bureaucracy PDQ.

Details, details, until it goes pear shaped.

Need to bear in mind that the new tenant/owners are probably lower income with little or no savings history and highly vulnerable to a change in circumstances.

[Perry]

Perry - chalk up this prediction of an increase in mortgagee sales in 5 or so years after this project gets underway

Does anyone really believe this whole daft notion is anything other than a make-believe sop to disgruntled Labour die-hards?

I doubt it will ever happen. Even with the much-talked-about super-powered Urban Development Authority, will the present comic opera crowd even get started before angry voters show them the door to the wilderness, next year?

As flyer pointed out, practical, intelligent people with even modest experience will tell Taxcindarella et al about the impossibility of success. That counsel will be ignored and another flop will then later need to be 'reset.' Or whatever other euphemistic word for failure is chosen.

As always, this is a massive smokescreen of symptom chasing. The problems remain the same and largely unchanged.

[Perry]

Everyone's To Blame

A long 'opinionated' diatribe from Barnyard Thickey on botched-kiwi-build, here.

But he may've got this bit right, at least. (in bold)

Labour could have taken that action, but it has dawned on it once in Government that property owners don't actually want to change the situation and the power of the existing web of status quo is enormous. Councils can't and won't pay for housing infrastructure. Voting ratepayers and taxpayers don't want to pay for the massive city re-engineering costs (new rail lines and large scale medium density housing) necessary to solve this problem.

[eri]

the reset failed to address let alone remedy the glaring structural faults in the KiwiBuild model.

These are described in Cabinet papers as as the “fundamentals of land supply, development capacity and infrastructure provision”.

These documents highlight problems with the planning and consenting requirements faced by developers in bringing new housing to the market, as well as the high price of land and chronic deficiencies in infrastructure to get work under way on subdivisions.

Further examples of the obstacles to affordability include shortages of soled labour in the construction sector along with high construction costs.

https://www.tvnz.co.nz/one-news/new-zealand/john-armstrongs-opinion-labour-must-stop-bathing-in-its-own-mythology-admit-kiwibuild-reset-hopeless

[Don't believe the Hype]

those lefties in Aus not achieving much more than Fail Twitford and One Term Ardern -

https://www.theage.com.au/national/v...08-p52p67.html

Low-cost housing scheme 'gave landlords and developers $1 billion' - theage.com.au In exchange, landlords are required to provide a 20 per cent discount to eligible tenants each year. ‘‘The problem is, $11,000 is much more money than the developers need to cover the rental ... www.theage.com.au

[Don't believe the Hype]

deflect... deflect... deflect

"Let's bear in mind the previous Government had a target of 39,000 houses through their Special Housing Areas, they delivered 3100," said Dr Woods.


Except that 3100/39,000 is 7.95% of the target whilst 258 in 2 years (of which many were already started under the last government) is about 4% so roughly half what the last government achieved without making it a flagship policy.

The other thing Dr Woods might want to understand is the performance of the previous government got them relegated to opposition - doing worse than they did isn't something to be proud of or continually compare yourself to

Time to go ONE TERM Ardern - although to be fair you've improved my CF greatly

[Davo36]

do they even have a webmaster?

https://www.labour.org.nz/housing

Interesting to see they have left their 2017 policy up there. Quite unbelievably honest of them:

In total, these changes are estimated to reduce net migration by 20,000-30,000. Without these changes there would be up to 10,000 more houses needed and up to 20,000 more vehicles on our roads annually. Our immigration system will be regularly reviewed to ensure it is functioning well.

Student Visa	Limiting visas and ability to work for low value courses	A fall of 6,000-10,000
Post Study Work Visa - Open	Remove work visas without a job offer for lower level qualification graduates	A fall of around 9,000-12,000
Work Visas	Regionalise the occupation list and ensure that employers hire Kiwis first	A fall of around 5,000-8,000
Estimated Reduction		20,000-30,000

https://www.labour.org.nz/immigration

They haven't done a thing about immigration, which surely would have helped the housing situation.

[Davo36]

This seems crazy

1) encouraging first home buyers to borrow 95%. Isn't that a bit risky and leaves no buffer!

Ross

Yessssss, 95%, what could possibly go wrong?

Interest rates can never, ever be raised again.

[Don't believe the Hype]

The latest on kiwibuild:


http://www.thecivilian.co.nz/kiwibuild-house-prices-soar-finding-new-value-as-a-collectors-item/?fbclid=IwAR3qyFJlZdL_cgjgHHEMHR73O_p5cvbGM9vnTwly Mv_-A3D9IRFyz67lPtY