Labour promises foreign buyer ban by Xmas, Nats an extra $10K for Homestart

Amy Adams and Bill English at Hobsonville Point for National's HomeStart announcement (RNZ)

The major parties both released housing affordability measures today, albeit attacking the problem from different angles — though with the common theme of being more driven by politics than economic theory.

Jacinda Ardern promised to ban the purchase of existing homes by offshore buyers if elected.

The Labour leader said her party would pass an urgent law change by Christmas to put the policy into effect.

The latest figures from Linz show that only 3% of property purchases involved a non-NZ resident buyer in what is a flat-to-declining market.

Regardless, the policy could dog-whistle appeal.

Nats' HomeStart top-up
During a visit to the Hobsonville Point development, National leader Bill English promised to increase the HomeStart grant by $10,000 if re-elected.

That would mean first-home buyers could get $20,000 to buy an existing house and $30,000 for a new build.

The policy would mean 80,000 people getting funding to help buy a house in the next four years, Mr English said.

A HomeStart grant allows a first-home buyer to divert KiwiSaver funds toward purchasing their first house, with top-funding from the Crown.

The policy is for individuals, but couples earning up to $130,000 a year could claim the grant and put it together for a deposit. 

 


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51 Comments & Questions

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It's hard to know which policy is sillier. Certainly National's subsidy will eventuate in higher prices as buyers have more funds to pour into the market. Subsidies always end up with the vendor.
Labour banning existing home sales to foreigners sidesteps the problem.
A house is timber, brick, glass, iron etc. and land. Guess which one is hard to get? Take a bow if you said land - and that's what Labour wants to allow foreigners to buy; residential zoned land. That should be reserved for Kiwis who want to build. That frees up an older house to help the market, including off shore purchasers. Sort out the RMA and release suitably zoned land, and let Kiwis fight over them.

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New houses also now require scaffolding, double glazed windows, additional funding for zealous Health and Safety beuracracy, and local council beuracracy - all stuff that this national government has added or failed to address.

Also add to this the new compliance costs for existing properties - even national forgets that additional regulation isn't free.

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And they have had 9 years under Key to have done all they are now talking about...in other words they are talking crap.
As for Labour...frankly they have no idea of the housing market apart from pretending they have it sussed...also a load of crap.
Fact is we can not build enough houses to cope with the existing influx of immigrants but still we pour in another 72.000 for the year.
We are mad to allow either party to continue with this nonsense.

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This scaffolding requirement is causing a lot of problems around the place. People are finding that when approaching a business about getting their roof painted, there is now an extra cost due to this scaffolding requirement. They're losing business, as people are now going to the backyarders to get it done, because they don't play by the rules. Time for a rethink with all these stupid rules, and regs.

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Couldn't agree more.

Rules designed by inexperienced bureaucratic pen pushers, who had no understanding of the flow on cost.

While its very difficult to put a value on life, you can on the cost of injuries. We are all feeling the effects of these new health and safety requirements to terms of costs and time delays, but lets see the cost benefit analysis. I very much doubt it stacks up.

If government are looking to improve work place efficiencies, have another look at the new health and safety regulations, because some just doesn't make sense/cents.

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It is a shame that over regulation is rarely brought up by politicians when discussing house prices. When Bill English says that we need immigrants to do key jobs does he ever think that maybe we have existing human resources wasting effort on complying to the new regulations his government has implemented? Every 50k spent on compliance is 50k not helping reduce the issues of overcrowding and homelessness. This over regulation is something that has infected nearly every industry during the Clark-Key regime, and it is rarely discussed.

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Labour leader Taxinder wants her Racist policy in before Chrisrmas.

Jacinder Trump wants Immigration stopped !

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Ted, take a breath mate.

How is it racist when it applies to all people regardless of ethnicity?

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No one will buy into Bill's new plan
As Bill and Nick Smith sat back and watched the housing price rise100%, mainly by foreign residents speculating, $10,000 is only 1% on a million dollar house in Auckland or 1.5% on a $750,000 house

Five to seven years ago it would have been double that percentage when house prices were only $300k to $500k

All too late and the masses are well aware that the Government is having a late rush of election bribes.

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This is a bad misstep from National, in my opinion.

All experience - and any right-leaning party should know this - suggests a subsidy to buyers simply increases the prices of houses. Is this the idea? Is it simply another subsidy to property investors?

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How many first home buyers are buying million dollar homes? Not many....If any

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They should do it the next day when in power, xmas is to far out, Chinese will be lining up asap to avoid the wait,thats why joh kee sold asap he knew these restrictions were coming ,because he knows Labour are going to win, no chance to sell at that price after the Labour landslide.

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Labour can't actually do it, to say so is fraudulent. Jacinda hasn't a hope in hell of stopping foreign investment or immigration. And she knows it, but lies in the hope that those that don't think too hard will vote for her. And as for Bill, smartest thing he could have done all along was say 'no lolly scramble, more of the same', and leave things alone. Lolly scrambles simply annoy intelligent voters.

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Listening to her speech i am pretty sure she said'''foreign speculators'' as opposed to foreign buyers.Could be wrong.
Is there a difference between speculator and buyer?

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No.

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Does Labours foreign ban include Australia?

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UIt will. They are one of the biggest offshore buyers of NZ property.

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The country of origin of the ultimate beneficial owner needs to be identified, along with their relevant tax identifier details, to make this real.
Too many work arounds currently with companies, trusts, nominees, agents or whatever else local real estate agents/lawyers/accountants can cook up etc to get the deal done.

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And anyone who thinks this will change under any party is a mug.

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Yet nothing about sorting out the biggest barrier in the way of building more houses. The Auckland Council and it's silly rules.

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NZs with Chinese sounding names who were accused by Labours Twyford,who put the verbal boot into them accusing them of distorting the buoyant Auckland Property Market. Even NZ born Asians came under the scrutiny ,whipped up by Labour and Twyford,making even the NZ born Asians being abused with racial taunts. Labour should at least come up and save face by apologising .Especially when it was proven that 97% of property sales were generated in NZ. Listening to the comments of Ardern about property buying by overseas buyers in the future. Surely she is not out to re-activate the claims and redneck comments, against Asian buyers,for a few extra votes ,hope not.

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John, is it xenophobic for the Chinese government to prevent foreigners owning land in China?

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We have the same rights in China as the Chinese have. Their land system is leasehold tenure - nobody owns a freehold title.

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Aye and there lies the rub. The FTAs have been signed. They treat us fairly and we treat them fairly. Labour is going to renege on that, so we should be expecting China, S Korea, Australia et al to retaliate.
Anybody who thinks any of these countries could not survive without trading with NZ should think again.

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When the CEo of a large Company leaves abruptly and you decide to appoint
an inexperienced person out of the Media pool to lead the Company you can expect a very choppy ride, and a lot of wild stuff coming out of left field. This is exceptional true when the person is a Classic Green. The Labour Party has been captured by the Green Party

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Xenophobia writ large.

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Is it really so bad to protect New Zealanders' ability to access a basic human need, that is in extremely short supply, at the expense of someone who may have never set foot on our shores, and who intends only to profit from the transaction?

There are plenty of other investment opportunities out there.

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"basic human need"? Would you include the likes of spuds, bread, footwear as "basic human needs"?

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Well, of course. Those things are literally defined as basic human needs along with shelter...

"Physiological needs are the physical requirements for human survival. If these requirements are not met, the human body cannot function properly and will ultimately fail. Physiological needs are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements."

But then, if you had even the slightest understanding of economic theory, you'd already be familiar with Maslow's hierarchy.

Needless to say, we don't have a severe shortage of spuds, bread or footwear. Nor do we expect young people to fork out 10x the median wage to pay for a backed potato.

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So, you expect the government to keep spuds bread and footwear "affordable"??
The reason they are "affordable" is private endeavour being allowed to supply without Government, RB Governor, town planners, RMA and the anti-progress brigade (aka Labour/Greens) knee-capping them.

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John, of course, if the government saw people starving they would be forced to act to ensure an adequate supply of food was provided. Are you serious? The only question would be how many people need to starve before they act.

The parallel is not between "housing" and "potatos" it is between "shelter" and "food". If you can't see that, you are sadly deluded or sadly self absorbed or both.

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Aye, you now resort to abuse.
Will not work, try reason.
The housing market has been screaming "shortage" for 30 years and all the while inept governments, and local bodies did their best to put hurdles up preventing supply.
The then RB Governor told everybody, "not to worry I was taught economics at University and all that is needed is for me to pull my lever" And so it went on getting worse by the year.
It was only when this Gov. realised that the RB Governor was selling them snake oil and the ONLY answer to a shortage is to allow PRIVATE ENDEAVOUR to answer the market and supply more. Sadly though we are now fully stretched with available skills.
But at least this Government has snapped out of it and is trying. Slow? Yes. Has to be, cannot go faster without more labour. But we are at least getting there.
More than can be said for previous Governments. They didn't even try.

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Cry for unborn baby human life as well Jacinder instead you want to decriminalise abortion?

Murder and Taxation...

Lets do this!

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Rocking out the noms de plume here, Ted. That John Shamrock one is a new one.

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Jacinda was asked on newstalk ZB this morning about the fta with China which allows Chinese investors to buy nz houses. She has said she will.ban foreign investors by Xmas. Yet when asked about this she did not give a straight answer and did not answer the question. I believe she will be very dangerous for nz as she appears to be misleading the public on issues like this and taxes.

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Her stance and comments on foreigners surprises me. Ardern who managed to get herself as the head of a socialist union of youth ,in Europe while she sat as a list MP in our Parliament. Her whole demeanour as revealed by her self, admired Che Guevara a well known racist and Murderer.She was also impressed with the dead Chinese Dictator Chairman Mao Tse-Tung. Who was responsible for the death of millions of chinese with the massive decline in failed Agriculture Policies.
If elected Labour/Green Party could very well help NZ to be the Socialist Republic Of New Zealand. Now that could beat the hell out of a few alleged Chinese house buyers, being banned by joined at the hip Labour/Green Party.

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Reds under the bed! Reds under the bed!

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Yes, better be dead than red.! Good to see you are on to it.!

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Too right, I am! If there's one thing this country needs right now, it's a witch hunt! We need to be out there demonising the opposition with stereotypes.

Oh...I see I'm already a little late on the scene...

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Oh you are so right....lip stick and pigs ears ring true.
This lady is dangerous she will want to out do Lange and that other women we had for a prime minister Helen Clarke and do it all in the first year.
Possibly ahead of a snap election to get shot of her.
We will be left to clean up the debt and the mess.....as if we don't already have enough debt.

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All I see these political parties doing is chucking money at everything. How about going after the reasons that people are struggling in the first place. Overcharging power companies, and city councils. I would like to see one of them say that they intend to regulate them, if they get into power. Now that's the one I would vote for. The Victorian govt have done it with the Melbourne city council. Why not here Too?

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Watch out Ivan. Regulating overcharging power companies. Heaven forbids. You'll become another being accused of wanting communism.
Funny thing is one of National's premises for selling down those dividend producing power companies was that it would make them more efficient, more competitive and drive down prices for consumers.

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She has destroyed the Green party by stealing all of their policies and is now coming after New Zealand First. The strategy seems to be working too (unfortunately).

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She is not smart enough to head off Winstone....not by a long shot.
The best thing that can happen is a co governace of Peters and adhern.
That will bring on a snap election anytime soon.

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Winston First has now ruled out going into coalition with Labour because of their stance on tax policies. Of course there's no guarantee he will reach coalition agreement with National - so are we going to see a short term minority govt. with a fresh election in the new year?

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So National's answer to the housing crisis is to further stimulate demand? At least Labour's policy will (marginally) reduce demand.

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Frankly the more I see of Adhern the less I like her or trust her.
I think she will be a bundle of trouble right from day one if she gets the power .

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Who would like to bet that all these comments come from pale male and stale NBR readers?

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Labour supporters are young dumb and broke and are all entitled to free housing with no effort or hard work.

Even the young dumb and broke rappers can afford a house at cheap 4% interest rates.
Young dumb and bro o o ke....

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Trust an actor to be unaware of NZ's history. I suggest you read up on what you were given by society. Try this for a start:

http://bwb.co.nz/books/home-truths

Hope that helps.

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I'm 29 and property owner. It wasn't easy but I did it through hard work and perseverance from 17 years of age. It's only when I'm coming up to 30 I'm considering loosening the purse strings a tad.

Us vs they:

While they were going on OE's I was in Auckland WORKING 12 hour days
While they were getting student allowance, I was SELF FUNDING my education through part time work
While they were buying euro cars on finance I was driving a 10 year old japa.
.
.
.
While they are net consumers, I am a net producer.
.
While they are working on their DIGITAL reputation/standing (eg taking photo's of every moment that makes them look good and posting to SM), I am trying to work on my REAL situation.

And as such I have been rewarded. It's their problem they are where they are now! Part of life is competition and it would appear that there are plenty of sore losers around. Part of growing up and becoming and adult is taking responsibility for yourself and your situation!

Here you go - 3 bedroom home that is 17.4km away from Auckland CBD, asking price $689,000 TM listing#1332432491. Yes it needs some work, but there's nothing stopping you from moving in, it's got 4 walls, a roof, plumbing and electricity. You have to start somewhere!

Here - https://www.anz.co.nz/personal/home-loans-mortgages/home-deposit-options/

..Now go...

And stop complaining!

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