Rise of the Marxists at Auckland Council

Policy Parrot says: 

Today is a busy day and yet another crazy arsed decision from Auckland Councillors has come to light.

On Wednesday the loonies voted to mandate that all property developments over 15 dwellings must have 10% affordable housing included in them.

This is socialism by stealth.

It is utter madness!

Property developers and developments are not flush with cash. Judging developers by what car they drive on tick is no measure of how flush they are or how profitable their developments are.

If anything the last 5 years ought to have taught us their margins were slight and they were dangerously close to failure which many did.

This idea of affordable housing is absurd because there is simply no way of making a development profitable with the inclusion of heavily discounted dwellings unless:

– margin is eroded to nothing;

– all the other purchasers pay more to subsidise the cheaper units.

It has never worked overseas and it won’t work here. It’s foolish, has not been based on clear evidence it is achievable and it has no place in free market democratic New Zealand.

In fact if implemented as a rule (and providing it isn’t smashed by the lawyers which it will be) developers will simply be forced to work around it and will build developments in stages or of a size that is just below the threshold to avoid triggering the rule.

Purchasers will not pay more knowing that they are subsidising other people. What sane purchaser will go buy an apartment in a building knowing they are subsidising 10% of the dwellings for. Some other schmuck.  

The subsidy would have to be 40-50% cheaper for it to make a difference. Which is massive!

Forcing affordability through mechanisms like this is patently wrong.

What is the qualifier for purchasing?

Won’t investors pretend to be hard done by people and buy the cheapest unit?

And how does Council control the on sale of that subsidised unit by ensuing it stays cheap…. because surely a smart buyer will sell it on for a profit later?

The idea is bonkers and should never have been ticked off.

This idea is going to screw the Auckland’s compact city aspirations further. Now that apartment buildings are no longer profitable and big developments impeded you can bet they won’t happen.

The Marxists have stamped their mark and they have irreparably damaged the free market where it concerns property.

Shame on Council.

Vote them out!

 


THANK YOU for being a subscriber. Because of you Whaleoil is going from strength to strength. It is a little known fact that Whaleoil subscribers are better in bed, good looking and highly intelligent. Sometimes all at once! Please Click Here Now to subscribe to an ad-free Whaleoil.

  • ratesarerevolting

    Hm let me guess who were the lead proponents… Cathey Casey ? Penny Hulse ?……….

    LBIAFC and so are most of the councillors.

    • Phar Lap

      Cathey Casey another wet back import.FFS what is it with the number of bludgers that dominate our nation.Brian Edwards ,Russel Norman, Andrea Vance. Dot Con, etc etc all selling their backward sick criteria from whence they came.

  • JeffW2

    Did all Councillors vote in favour? If not, please can you identify how the Councillors voted.

    • Yes, it is really important to know who the idiots were that drove that particular piece of socialist stupidity!

    • Clever Harry

      NZ Herald article yesterday lists their names.

      • sheppy

        Thanks!
        Never read the horrid but will look online

  • David Thornton

    This will distort values and the resultant effect on rates. Affordable homes will paying less rates than market value homes within the same block of homes, with all homes receiving exactly the same services. Crazy.

  • blokeintakapuna

    …and behold!
    The Council’s new transport plan by committee… a hybrid Camel Unicorn…

  • richard.b

    Answer me this: If I put all my assests in a trust so I have nothing on paper, I would be eligible for the “affordable housing”.
    So the person with the smartest accountant / lawyer pays the lowest price.
    Yep, that is a smart plan.

  • Nechtan

    All councils should stick to the basics, roads, drainage, etc…affordable housing, living wages and other such issues are the role of central government (if that). Get the basics sorted, leave the rest to the government.

    • slade52

      Nah, leave the rest to free markets.

  • sheppy

    We NEED to know who these people are that want this stuff!
    Please spill the beans or at least point us to where the information can be found before the elections

  • Patrick

    How many people would shell out between $600k to $850k for a house knowing that right next door would be some dole bludging dope smoking pisshead ropehead that your taxes paid for their daily idleness and on top of that the purchase price of your house subsidised them to live next door to you?
    As has been said, this has been trialled overseas & does not work, the UK had this “brainwave” some years back, all it created was the opportunity for bludgers to secure ownership of a home at a reduced rate which at the first opportunity they then on sold for inflated profit.

  • Pissedoffyouth

    Speaking of Auckland council, if you look at the job postings they do they are employing a ton more admin type roles – must be lots of work needing to be done with those extra rates!

    • Clever Harry

      Yep a bloated fat overweight organisation.
      Not only is it out of control on rates it is also losing its head on costs and wants to borrow more.
      This affordable housing idea on the back of it all is making me think these people are raving mad and have contracted some disease. Nothing is sane.

  • LesleyNZ

    Just wrong wrong wrong. Then this morning on NewstalkZB – Nelson Council and their fencing policy. Councillor Kate Fulton reckons that it is OK that you can’t do what you like with your own property. Couldn’t believe what I was hearing this morning. Who does she think she is? Listen to her at 8:15 mins. Sounds like a Marxist.
    http://content.radionetwork.co.nz/weekondemand/auckland/60745.mp3
    Local Council now have far too much control over our lives. This control has crept in oh so very very quietly and sneakily. These councils need stopping in their tracks.
    Google her name and you will find out more about Kate Fulton.
    ‘Persecution’ of protester worries Fulton – http://www.stuff.co.nz/nelson-mail/news/7315778/Persecution-of-protester-worries-Fulton
    Vote her out Nelson. http://vote.co.nz/2010/candidates/kate-fulton-4273

    • Jman

      I thought the same thing when I heard that this morning. These creeps need to fuck off and go live in a commune somewhere where they can’t do any harm.

  • slade52

    Look for a lot of 15-or-fewer-dwelling developments over the next few years.

  • philbest

    “….It has never worked overseas and it won’t work here. It’s foolish, has
    not been based on clear evidence it is achievable and it has no place in
    free market democratic New Zealand…..”

    Absolutely correct. This is just looney socialist central planning ideologues thrashing around in denial about the gross failure and damage of the policies they are already responsible for, and trying to force the market to do what they want, with yet more unintended consequences.

    The solution, to make housing affordable, is to scrap urban growth boundaries and allow infrastructure for new developments to be financed by means other than upfront fees on developers. “Sprawl” is a non-problem and the “solutions” to it do more harm than good.

  • GregM

    Who the fuck is going to purchase a $1m apartment if your neighbour is going to be a $300k shitbox? It’s ridiculous.That toxic jock needs to go. She is a complete menace to the whole city.

    • blokeintakapuna

      …it will be all the others, except NIMBY’s…

  • cows4me

    These fuckers are as mad cut snakes. Why stop at affordable housing. Why not regulate wages and introduce obscenely high taxes for the right pricks. Why not make everyone poor so the only houses available will be shipping containers. Don’t these socialist numb nuts ever learn.

  • old shunter

    this is why nick smith wants to take all housing planning and approval out of council hands and have a national outfit that runs a standard operation regardless of where you are in the country , approving all applications in 20 days without all the local colour and bull shit that has dominated local body operation in this country. The whole structure has become far to clogged up and they simply go back to what they need to do and leave all the social stuff that Clark pushed off the national budget onto local bodies out the door, and the same with our schools who are expected to be a second social welfare dept send all that packing as well and get back to doing education

    and get back to the basic of running an area and we wont have crazy situation like in nelson , you have nelson and richmond 5 mins drive apart with two complete seperate city councils and they won’t amalgamate

    • Hazards001

      Hmmm…we had North Shore City, Waitakere City, Rodney District, Manukau City, Franklin District and Auckland City all with in a one hour drive of each other and they have amalgamated into the biggest fuckup since the charge of the light brigade, they have more fucking generals than soldiers and are employing consultant buddy’s at a rate not seen since Helen Clark. You are most welcome to espouse the virtues of amalgamation but personally I’d like to see it put right up there with the fucking flu and a broken leg as things I’d prefer NOT to have to be a part of.
      Nick Smith quite frankly couldn’t be trusted as far as you could throw him either the ole possum rooter.

      • Bryan

        we in christchurch akaroa, lyttleton were all brought in under one admin while still retaining their local comunity boards and it has worked well as all the paper work has been put through one system I think it is probally going to take 5 year of more for Auckland to settle under the new setup because you have had a lot of items that should have been
        in place to make a bigger city work,and there is going to some paying at first but the long term its just got to happen $2000 of rates is 5.47 a day for access to all the services we get from out councils, water, rubbish gone transport, libraries, sports feilds Concert halls and the change is still fresh in a lot of people minds and we all hate change but sometimes we need to be brought screaming into change remember the people under moses in the middle of the desert said “take us back to egypt” but they had not seen the well watered plains of jordan and when in 12 months you have those new fast Spanish trains running and they get the circle from britmart drilled and done it will amazing the differance that it will make to people flow and it simply got to happen.
        I grew in wgtn 12.5 mins service in peak and 30 mins in off peak and we went all over wgtn and hutt as tennagers and that will come

        Just as when a child is born their is Pain but after comes the joy and personally in 10 years you guys will say, whay had we not doen this years ago

        • Hazards001

          Bullshit

59%