It has been obvious pretty much from the outset that we have in power a government in name only. All these people know is their ideology. It doesn’t matter to them whether their ideology is applicable to solving a particular problem or not, they implement it regardless because it is all they know. It is all they understand. The consequences don’t matter. They don’t think about the consequences and in all likelihood they wouldn’t understand them. This government is made up of the most inept bunch of numpties one could have the misfortune to meet.
Their recently announced housing policy tells you a lot about their inability to structure a plan that would have the desired effect. Their first and most basic problem is that they don’t appear to understand the housing market and how it works.
Grant Robertson, probably the only individual who thinks it’s safe to walk the streets of his own electorate at night, had to write to the Reserve Bank to seek advice on how to stabilise house prices. Stuart Nash, in his wisdom, thinks they are very stable, announcing on Newstalk ZB last week that the average house price in Auckland is $625,000. How out of touch can you be?
Stuart might like to know that currently in the One Roof section of the Herald is a two room bach on Waiheke Island that recently sold for $2.176 million, more than $1 million above its 2017 CV. 85 groups viewed it; most were looking for a holiday home.
The day after the government’s housing announcement there was strong interest at a Bayleys auction. A starter home in West Harbour sold for $905,000 and a five-bedroom nearly new home on a small site in Mt Eden was picked up for $3.05 million. The next day a Parnell cottage sold for $3.3 million and a classic brick and tile home in Farm Cove went for $2.55 million.
In the Weekend Herald there was a story about a house in Epsom, originally built for the Winston family. It is said to be shades of Downton Abbey and sold for $9.9 million. It last sold in 2008 for $2.88 million handing the vendors a profit of just over $7 million. What was interesting was the comments from the listing agent. The property had attracted more than seventy interested buyers. He said it was amazing how many people have budgets of between six and twelve million. At that price level and higher it’s an incredible market. He said people like to know that other people are prepared to pay these prices. People have told him they like to see that.
Obviously we are not talking first home buyer properties here. But I mention them because I think this government hasn’t a clue about the amount of money people have to spend on property, particularly in Auckland. No government policy is going to affect the majority of them as second home buyers or investors. They also know this government won’t be in power forever and National have already announced they will repeal the measures.
The Greens say investors must be taxed and forced to cough up cash deposits. That’s no problem for these people. Again, a party that lacks knowledge of the housing market and is therefore out of touch. It’s time they realised there are buckets of people with buckets of money in Auckland and they’re not interested in riding a bike.
The government has introduced a $3.8 billion fund which will be used to green light tens of thousands of housebuilds. Kiwibuilds? There’s a Tui advertisement right there. Hey guys, there’s a shortage of timber. I gather that nails and other products builders need are also in short supply. Honestly, you couldn’t make this stuff up. Going after landlords and investors or speculators is not the answer. The government needs to get together with local councils to free up land. Having the money for infrastructure is of no use without the available land. Even that is expensive. As Don Brash says, “It is quite outrageous at the moment to pay $800,000 for 400 square metres of land in Flat Bush. You cannot put an affordable house on it.”
This latest policy will not bring down house prices but it will most likely cause rent rises, hurting a large section of Labour’s core voters. It might also reduce the number of rental properties available as some investors decide to sell.
Investors, excluding Mum and Dad with possibly a second home as a rental for retirement income, are running a business like anyone else in the commercial sector and should not be unduly penalised. Unfortunately, we have a government made up mostly of individuals who have never been in business and don’t understand it, and the country is starting to pay a pretty hefty price for their ignorance.
They sit in Question Time listening to the hopeless answers their useless ministers give, all nodding their heads like clowns in a coconut shy. They are certainly not worth the money they’re paid and it’s high time the Speaker, who shouldn’t be there, did his job and demanded that Ministers answer the question. He is not paid to be their Lord Protector. He is paid to ensure he runs Question Time in an unbiased manner and not to try to get himself in the Guinness Book of Records for ejecting the most number of opposition members.
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