Hard News by Russell Brown

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Hard News: How the years flew by ...

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  • Andre,

    I always enjoy the attacks I get from boomers when I mention inter-generational theft on PA. What else could you call the support by mainly older home owners for the immoral housing policy of John Key's government? It has been 8 years watching a slow fiscal train wreck occur. 8 years of listening to those benefiting financially saying "shit happens". There has been a breakdown in trust that may take a generation to mend.

    New Zealand • Since May 2009 • 350 posts Report Reply

  • Russell Brown, in reply to Andre,

    There has been a breakdown in trust that may take a generation to mend.

    I think this might finally be starting to sink in, actually.

    Auckland • Since Nov 2006 • 22754 posts Report Reply

  • Angela Hart, in reply to Andre,

    There has been a breakdown in trust that may take a generation to mend.

    Maybe it will motivate a generation to vote or revolt to get the change that is needed

    Christchurch • Since Apr 2014 • 614 posts Report Reply

  • Nick Russell, in reply to Angela Hart,

    Maybe it will motivate a generation to vote or revolt to get the change that is needed

    Hmm. That sounds suspiciously like waiting for the missing million. Or Godot. Either way, there's still no sign that the electorate is so upset about housing in Auckland that they would do anything crazy like, y'know, actually vote for a change of Government. Or vote at all. So the Government still has all the justification it needs for doing nothing much. It's worked very nicely for the last 8 years or so, and it's still working now.

    Wellington • Since Jul 2008 • 122 posts Report Reply

  • Luke Williamson,

    And vote for what change? The Labour Party I love(d) and have voted for all my life are terrified of putting up any policy that might offend Auckland homeowners because it might make them unelectable. The Capital Gains policy that they rushed to jettison before/after the last election, would suddenly start looking like a proper policy response to what's going on, from a party that stuck to its guns despite it being unpopular at the time. But no, Labour are just left floundering on a sort of 'left' with nothing to say, other than 'John's flip flopping'. In other words, they stand for nothing other than being against John. It breaks my heart.

    Warkworth • Since Oct 2007 • 296 posts Report Reply

  • Luke Williamson,

    Oh and, BTW, what is the answer cos I'm not quite smart enough to work it out. Is it a combo of capital gains tax, intensification, more land made available? Or is there some other vital component required?

    Warkworth • Since Oct 2007 • 296 posts Report Reply

  • Zach Bagnall,

    Some years ago this was seemed like an Auckland-only problem. I don't think that's the case any more. It's in all the major cities and spreading.

    I don't think it's accurate to blame the current government or the previous one. Kiwis prefer property investment over productive economic investment (eg Kiwisaver).. a wholesale cultural change is necessary.

    Colorado • Since Nov 2006 • 120 posts Report Reply

  • Andre, in reply to Luke Williamson,

    Maybe we could take another look at an immigration policy that seems to be driven by recent residents and citizens importing their (often elderly) extended family just in time for universal non-means-tested superannuation and free healthcare? The 50,000 extra immigrants are definitely exacerbating the problem and a small percentage get in because they are wealthy or have skills we need. How about banning non-resident foreigners from buying property? Completely. Not "just existing housing stock" but all of it.
    How about the government creating more state housing, rather than trying to sell that off to foreign landlords too? How about a requirement for local government to continue to provide social housing? I'm one of the Monte Cecilia Park residents recently given an eviction notice from the council so they can bowl our 30 homes to build a car park and grand entrance-way to the park. This isn't social housing - officially we pay market rates, but renting a similar home in the same area will cost about $200 a week more. Almost all of us have children. I have 4 kids at school. The rents are about $300 less than my income a week. There is no real political will in either central or local government to act differently around housing in case baby boomers' and their parents' votes are lost.

    New Zealand • Since May 2009 • 350 posts Report Reply

  • Kumara Republic, in reply to Andre,

    I always enjoy the attacks I get from boomers when I mention inter-generational theft on PA. What else could you call the support by mainly older home owners for the immoral housing policy of John Key's government? It has been 8 years watching a slow fiscal train wreck occur. 8 years of listening to those benefiting financially saying "shit happens". There has been a breakdown in trust that may take a generation to mend.

    There's already a name for them: Generation Rentier. It's more class-related than age-related, since boomers don't have a monopoly on rentierism - think Martin Shkreli.

    Luke W: To fix the housing issue needs a multi-pronged approach. On top of what you suggest, there's also non-resident stamp duty, some form of regional development (but not a rerun of Think Big), and a big boost in investment for skills for those least able to retrain.

    And I'm also head-desking about Generation Rentier's grip on the housing market. It came about from the accident of history that was the 1987 Crash which turned a lot of people off shares for life. It may take another accident of history to pop the housing bubble, because no one wants to be seen to poop the party by pointing out the real estate gold rush is a fool's gold rush.

    The southernmost capital … • Since Nov 2006 • 5418 posts Report Reply

  • Thomas Beagle,

    Allow me to be the first to #notallboomers

    Like #notallmen it's both accurate and completely missing the point.

    New Zealand • Since Nov 2007 • 46 posts Report Reply

  • Bart Janssen, in reply to Luke Williamson,

    Or is there some other vital component required?

    New Zealand is poor. That's a fact we can't/won't admit to ourselves. We have simply very little of value to contribute to the world and we as a country are poor.

    The consequence of that is that people from countries that are rich have more money to spend than New Zealanders.

    In that environment, allowing those people from other countries who have money to buy our assets without any restrictions whatsoever is insane.

    But we continue to allow this insane policy because we cannot admit we are poor.

    We may as well sell every second born child into slavery.

    Auckland • Since Nov 2006 • 4451 posts Report Reply

  • Bart Janssen, in reply to Zach Bagnall,

    Kiwis prefer property investment over productive economic investment (eg Kiwisaver).. a wholesale cultural change is necessary.

    If it was only kiwis then the only real problem would be the Australian banks taking a billion dollars a year out of New Zealand and we could cope with that that, just.

    But it isn't kiwis who have the money now.

    Auckland • Since Nov 2006 • 4451 posts Report Reply

  • Luke Williamson, in reply to Bart Janssen,

    And I guess we have a PM at the moment who is physically and philosohically more comfortable with rich people from overseas than poor people in NZ.

    Warkworth • Since Oct 2007 • 296 posts Report Reply

  • Angela Hart, in reply to Luke Williamson,

    there you have it

    Christchurch • Since Apr 2014 • 614 posts Report Reply

  • Bart Janssen, in reply to Luke Williamson,

    And I guess we have a PM at the moment who is physically and philosohically more comfortable with rich people from overseas than poor people in NZ.

    I hadn't actually thought of that, but yes he is distinctly uncomfortable with poor people.

    Auckland • Since Nov 2006 • 4451 posts Report Reply

  • Paul Campbell,

    Yes #notallboomers (somehow I qualify even though I always think of them as being the hippy generation rather than the punks) - I own my house free and clear, have owned it for 13 years now - but I'll be quite happy if we sell it for what we bought it for +inflation - after all free rent for 13 years is a great return on investment

    But the I'm all for a capital gains tax, I like the US way of doing this - all income, incuding capital gains, are taxed as income - the govt makes some exemptions - the family home, long term investment in companies (no pump and dump).

    Dunedin • Since Nov 2006 • 2606 posts Report Reply

  • Rosemary McDonald, in reply to Bart Janssen,

    but yes he is distinctly uncomfortable with poor people.

    Minorities often feel uncomfortable when outnumbered by the mainstream...

    Waikato, or on the road • Since Apr 2014 • 1344 posts Report Reply

  • Russell Brown, in reply to Luke Williamson,

    Oh and, BTW, what is the answer cos I’m not quite smart enough to work it out. Is it a combo of capital gains tax, intensification, more land made available? Or is there some other vital component required?

    Given that various analyses of the problem are true to a greater or lesser degree, I think it would be a mix of measures, including the government building more houses.

    But the first step is acknowledging that this is a really serious problem.

    Auckland • Since Nov 2006 • 22754 posts Report Reply

  • Angela Hart, in reply to Rosemary McDonald,

    yes and you get the "Spirit Level" effect with the consequence of gated communities and fear, private islands or emigration with your ill gotten gains to more accepting populations.

    Christchurch • Since Apr 2014 • 614 posts Report Reply

  • BenWilson, in reply to Luke Williamson,

    Oh and, BTW, what is the answer cos I'm not quite smart enough to work it out.

    This is the trillion dollar question.

    Auckland • Since Nov 2006 • 10633 posts Report Reply

  • Rich of Observationz,

    I'm sorry. David Farrar complaining that media didn't identify a person as being a partisan of a party? Pot, meet kettle.

    Back in Wellington • Since Nov 2006 • 5550 posts Report Reply

  • Rich of Observationz,

    A tax on housing will increase house prices, not decrease them

    Explain then, how when the British made buying a house more expensive (by changing the tax treatment of mortgage interest) prices fell substantially and stayed relatively low for some years (until the tax change was forgotten): http://www.independent.co.uk/news/business/personal-finance-how-the-house-market-lost-its-miras-touch-1148693.html

    Back in Wellington • Since Nov 2006 • 5550 posts Report Reply

  • Rich of Observationz,

    BTW, what is the answer cos I’m not quite smart enough to work it out. Is it a combo of capital gains tax, intensification, more land made available?

    I'd start with setting up a body, inside or outside Treasury/RBNZ, which just as the Reserve Bank is mandated to control general inflation, is expected to manage house prices: for instance to target a 1% annual drop for the next 10 years.

    Give them a full set of legislative and regulatory clubs to be used as needed, starting with LVR limits and ending with an inflation cap (in the form of a 100% tax on sale proceeds beyond a certain margin over GV).

    Once it became clear that government was serious about this, the expectation of capital gains would be removed from the market and with it the motivation to accept a negative rental yield. No racism necessary.

    Back in Wellington • Since Nov 2006 • 5550 posts Report Reply

  • Rosemary McDonald,

    And from the provinces, Labour speaks to the assembled in Tauranga on their "housing crisis".

    The inverted comments are the work of the reporter...

    a kindy teacher at Welcome Bay's Earth Kids Childcare Centre, said she had put her name down at four real estate agencies, but so far had been unsuccessful in finding a place.

    "Most of the two-bedroom places I have looked at are $340-$350 a week, and when you turn up for a viewing it's like the agent's running an auction. There are plenty of Aucklanders offering to pay way more than the advertised rent so you don't get a look in."

    And as a consequence of the "housing crisis" in Tauranga...

    Up to 150 letters a day sent by the Bay of Plenty District Health Board aren't being delivered ...

    No housing, no healthcare,

    Waikato, or on the road • Since Apr 2014 • 1344 posts Report Reply

  • Sacha,

    Bryan Gould points out that any real solution requires tackling the banks.

    Ak • Since May 2008 • 19686 posts Report Reply

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