Own goal from David Cunliffe on housing

Kanik Mongia speaks with the Great One who learned to walk on water from Jesus

Kanik Mongia speaks with the Great One who learned to walk on water from Jesus

David Cunliffe finds a first home buyer as his poster boy in order to smash the government over the new LVR changes from the Reserve Bank.

Labour Leader David Cunliffe said he would use a number of tools to cool the property market without restricting access to first home buyers.

He met today with prospective first home buyer, Kanik Mongia, 23, an IT consultant, who had his ASB pre-approval on a 90 per cent loan for a $400,000 – 500,000 home cancelled by the bank because of the LVR changes.

While there is need to cool the property market, especially in places like Auckland, the new lending rules will have “unintended consequences” on first home buyers, Cunliffe said.

“Unfortunately they are taking it out on the hide of first home buyers like Kanik, and that’s not what we want. We want young people to be able to get into their homes and we don’t want young speculators driving prices through the roof,” Cunliffe said.

Labour would want first home buyers and certain regions of the country exempt from the LVR restrictions, Cunliffe said.

“What’s the point of putting a move like this on Palmerston North, where prices have been flat or other places down south where prices have actually been falling? The problem here is one of government policy. They have taken a sledgehammer to crack a nut,” he said. 

There is a slight problem for Cunliffe….his poster boy first home buyer isn’t.

Mongia had spent the last 6 months hunting for an investment property in an already tough market and believes the Reserve Bank restrictions won’t help the situation in any way.

Instead he would be forced to look to alternative non bank lenders that are not covered by the Reserve Bank rules, reduce the value of his target property, and even look overseas, he said.

Undeterred Cunliffe blunders on:

An ambitious, successful young person like Mongia should not be forced out of the market, Cunliffe said.

“Kanik is a young professional who is looking at buying in a relatively modestly priced area like South Auckland or Mt Wellington, he should be able to get a first home, he has a good job and he should be able to work his way up from there,” Cunliffe said.

“At the moment government policy is locking hard working young people like Kanik out of the market.”

Ins’t the reason why Labour wants to introduce  a capital gains tax is to catch out people like his poster boy?

Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.