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What’s affordable?

by Whaleoil on November 22, 2012
We all missed a most basic mathematical point in Shearer’s housing policy announcement.

Again I ask who the hell is advising Shearer and why the hell is he listening to them? Run the numbers David, 100,000 new homes over 10 years, 10,000 a year, 192 a week or 27 a day. Realistic when you think about it? Hell no. The guy should have just said that’s not realistic therefore I’m not going to announce it because it is an unrealistic policy.

100,000 new homes over 10 years, 10,000 a year, 192 a week or 27 a day.

So Shearer’s promising to build 27 affordable houses each and every day for ten years, with no land, no detailed budget, using a wad of borrowed money (also known as bonds).

He will need to import 30,000 Filipino builders to make that work…and that provides its own housing dilemma…fortunately though they don’t mind living 6 to a container.

He’s dreamin’.

To recap, David Shearer’s policy is to build 27 affordable houses a day for ten years and sell them at $300,000 each – while still  giving a return to the people he borrowed the money off (aka: bond holders),  This is supposed to cost the taxpayer $1.5b.

So to illustrate his genius, he promoted this visit to an ‘affordable’ housing project.

Unfortunately for Shearer, the DomPost reports: The four four-bedroom homes he visited were each valued at $495,000.
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  • Michael

    Don’t let math get in the way of a vote grab.

  • CJA

    Lol WO should I have copyrighted my post goddamnit! Funnily enough I posted the same thing on the Standard and the NZ Herald website and some of the responses can only be described as dimwitted. In saying that on the NZ Herald website I did get some support as well.

  • Petal

    **FACEPALM**

    The fun is going out of this.

    They’re not even trying anymore.

  • In Vino Veritas

    Is Labour proposing that they be junk bonds? CDO’s (junior tranches)? Are they going to be backed by securitised loans?

    • blazer

      if theres money in it for merchant wankers …who cares…bring it on…just like the U.S Municipal Bonds rip!

  • In Vino Veritas

    This is hilarious. Fred Dagg couldnt have done it better. And I see Roberston has put his face to these affordable $495K homes. Beautiful!

    • Guest

      Perhaps we should call them “Affordable Half a Million” homes?

  • JeffDaRef

    Whale – back off – leave Sheep alone, he is the best asset we have for 2014.
    Cunliffe has the ability to fool voters and convince them to switch to the left, we need Shearer left in place!
    I cant wait for the 2014 Leaders Debates – I hope Ticketmaster do an advance sell, I’ll camp out overnight to get tickets!

    • busman

      If shearers is still there they may need to consider extending the broadcast by another 30mins at least!

    • Sir Cullen’s Sidekick

      Sheep tells me he is taking lessons from Winnie the Poo to tackle Emperor.

  • Auto_Immune

    The houses they visited are to be rented out, not sold. They visited the charitable equivalent of a state house.

  • manuka416

    New building consents (houses/apartments) numbered 13,662 in 2011. Labour are saying they’d almost double that output. Supply would outstrip demand very quickly. Then there will be many happy kiwis with negative equity, lovely.

  • manuka416

    From the DomPost article: “Higher rents on some units were used to help cross-subsidise other tenants across the charitable trust’s 26 homes.” A bit like taxes.

    • Sir Cullen’s Sidekick

      Get ready for the “Affordable Housing Levy”, rich prick.

  • Markm

    Not quite correct.
    Labour have made a song and dance about work life balance , therefore no weekend work, only during week and no more than 40 hours a week or the unions will be kicking them.

    This means 38 houses per day or just under 5 houses per hour for 10 years.
    Lets hope Helen Kelly and her union mates dont start causing trouble or the 5 houses per hour target might seem a little optimistic.

  • blazer

    is it 100,000 homes or 100,000 people/families?

    • Macca

      Why would anyone bother explaining it to you Blazer? You’re too fucken thick to comprehend even the simplest answer! Crawl back under you’re smelly little rock at the Strandard with you’re other little snivellers!

    • In Vino Veritas

      100,000 homes blazer.

      http://www.theaucklander.co.nz/news/plan-unveiled-build-100000-basic-homes/1626905/
      There. Did your research for you. I wonder if Kate Sutton will buy one of these?

  • unitedtribes

    I think they fancy having a state owned factory pumping out kit-sets that state employees are putting up 29 per day all under their control. As soon as this is prooved a success they will start making trains.

    • Sir Cullen’s Sidekick

      According to Sheep, these kit-sets will be imported from Myanmar.

      • unitedtribes

        Could do worse

  • LesleyNZ

    What are they made out of? They look like those leaky homes.

  • Sir Cullen’s Sidekick

    There 30% idiots in NZ who believe in Sheep and his cronies. So what is the issue here? Also when $495,000 comes from your tax, why should they worry? Communist Norman who will the finance minister will announce a “moderate affordable housing levy” of 6 cents per dollar on rich pricks to fund this. Get screwed bros.

  • Rossco

    I like to see Labour get a kicking as much as the next human – but those numbers must be based on building these houses….. one at a time? Or am I missing something in the maths.

  • Mediaan

    Whichever way they financed this, it would seriously undermine the retirement savings of everybody else in the country.

    Wussel Wealth, banknotes printed by the sheet? As the Greens say? Result, serious devaluation.
    Foreign borrowing, no profit stream from it to help with repayments? Result, serious devaluation.

    And it has to cost at least 30 billion. Lent sympathetically to hopeless cases, little hope of repaying it any time soon.

    Everyone loses.

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