Kiwibuild has gone off the rails

Whatever we expected of Kiwibuild, this was not it.

Mike Hosking comments on the Kiwibuild fiasco. quote.

With the criticism comes the irony. The government handed over the keys to their first Kiwibuild house over the weekend.
The couple who got drawn out of the ballot looked like a very nice, middle-class sort of family, who were very grateful for their luck and opportunity.
They paid $650,000. Dave Dobbyn sang – I hope the taxpayer didn’t fork out for that.
There was general festivity and merriment as the government used, as governments have a want to do, the occasion to grab the headlines. end quote.

In my opinion, the government need to look seriously at their PR people. This was a disaster of unmitigated proportions. So the taxpayer is subsidising housing for doctors now? quote.
Policy is not just about specific delivery, it’s about sales, pitches and image. And this was a good one.
Except, there was no shortage of critics lined up. And in that is the irony, and sadly, the government’s biggest mistake.
The critics were the likes of the Sallies who quite rightly point out as we have done all year, these aren’t homes for the people the Labour Party promised, these aren’t homes for the battlers, strugglers, and the ones left on the scrapheap of the economic boom times. end quote.
Doctors are never on the scrapheap. She is young and only recently qualified. She will be outside of the maximum income limits very soon, but that doesn’t matter now. She qualified for the house as a result of a small opportunity window, and that is that. That is the farce of it all. quote.
We have been long suspicious given the price for a home is not just $650,000, but actually started out at $600,000 so it’s gone up $50,000. And our suspicions were confirmed when Treasury produced the figures that showed very,very few people actually had the money to afford one of these homes.
Even at a 10 percent, you need $65,000,  and therefore a mortgage at over almost $600,000. Even at five percent, do the numbers and it’s a salary well into the six figures required to foot the bill. end quote.
Low-income families never had a chance of affording these homes. Not in a million years. quote.
And as the Sallies quite rightly point out, just how many of their clientele, or Labour Party supporters have that sort of income. Well, the answer is less than a third. And the reality is at $650,000 there are in fact plenty of homes in the market for sale already at that price.
So, in essence, the government were providing nothing close to what they promised. Yes, they’ve boosted supply and that is no bad thing. But they’ve done nothing that GJ Gardener haven’t been doing. end quote.
Except the taxpayer is now subsidising homes for the middle classes, which they will be able to sell at a profit after 3 years and capital gains tax will not apply, even if it has been brought into tax law by then. Twyford and the government has created a new class of property speculator that is specifically exempted from all the taxes they are imposing on everyone else. No wonder the doctor said she felt like she had won Lotto. quote.
But the difference is they pedalled [sic] the myth that it’s the hard done by that will somehow magically get their housing issues solved by a Labour government, when in fact nothing of the sort has happened.
If this was deliberate, in other words, if Phil Twyford and co knew all along this was the outcome it was a political con. If it’s an unfortunate set of circumstances, then it’s ineptitude. end quote.
Neither would surprise me, but I lean towards ineptitude. During the election campaign, they made it sound as if building hundreds of thousands of houses was easy, and that the last government was totally remiss in not doing so. Now the harsh reality has come home to them, they have to make the most of it; but nobody is fooled. quote.
Either way, Kiwibuild is not the answer to the so-called housing crisis. In fact, as further numbers last week showed it isn’t even closing the demand gap. This government faces the next election with a bigger gap than they already have.
If you can afford $650,000, brilliant. But when the Sallies are bagging a Labour government, something’s gone off the rails.  end quote.
Things are going to get much worse in housing before they get better. This government is going to have to sell this at the next election. Good luck with that.

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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

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