Great news, rich pricks can buy affordable homes under government scheme

Phil Twyford has let the cat out of the bag. Rich pricks will be able to buy up affordable KiwiBuild homes under the KiwiBuild scheme.

The NZ Herald reports: Quote:

People wanting to buy one of the Government’s affordably priced homes will not be income-tested.

That means high-income earners will not be blocked from purchasing one of the 100,000 planned houses to be built over 10 years, which will be priced at up to $650,000. End quote.

I know a few people who will be ecstatic about that. Buy up a home that the government paid the builder too much for, and sold to them under the real value of the property, sit on it for five years, then flick it for a massive profit and avoid the bright-line test to boot.

I’d imagine one of my mates will be looking at buying 10 or 20 of these. Quote:

Housing Minister Phil Twyford said the criteria for prospective buyers in the KiwiBuild scheme were still being developed.

It is already known that the houses will be limited to first home-buyers and permanent residents. End quote.

Like that is going to stop someone. They will put in people known to them to buy the houses. An Edgar Friendly. Quote:

But it is understood that income caps will not be used for the scheme.

Income-testing has been used for other Government housing initiatives – including the HomeStart grant for first home buyers – to ensure that demand is limited to only those who need them most.

The HomeStart grants are limited to sole buyers earning less than $85,000 or two or more buyers earning less than $130,000.

In the case of KiwiBuild, the Government feels affordable housing should not be restricted only to those on low or modest incomes.

For people on the lowest incomes, the Government has committed to expanding social housing. The Budget included $4 billion in funding or borrowing to build 1600 new state houses a year.

Further policies are being devised for those who are struggling to get into affordable housing, including a possible shared equity scheme.

Twyford said last week that officials were looking at a scheme which would allow a third party such as a bank or a government agency to co-own a property by taking on a share of the mortgage.

That would reduce the owner’s deposit and weekly mortgage payments.

The owner could then buy the remaining share off the third party when they could afford to.

There are likely to be other KiwiBuild requirements such as a minimum length of stay before resale. End quote.

All manageable restrictions for a savvy investor. Of course, Twyford has to actually build a house first.

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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.

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