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!

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.