A reader is not impressed with the wailing over housing LVRs.
These crocodile tears from Labour for the poor first home buyer and the wall to wall coverage of it is getting on my nerves. Cunliffe trots out this graduate working at Deloittes who is crying because he can’t buy an investment property for 450k with a 10% deposit at age 23.
Bob Jones wouldn’t get 90% LVR on an investment property and for good reason, the rent won’t cover the interest let alone insurance rates and maintenance.
And to help this poor budding property speculator he wants to ditch the independent Reserve Bank and bring in a CGT which has worked a treat in every other property market in the world and force very other borrower be there business or personally to pay higher interest rates instead.
The thing that annoys me is the media don’t ask why has a CGT not worked anywhere else on earth why will a CGT stop investors in the property market but have NO effect in any other areas of the economy that it applies too. And most of all David Parker was advocating macro prudential tools at the last election including LVRs.
So, Labour want to nationalise power,