Hawke's Bay Property Investors' Association

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30-11-2012

Politicians debate affordability

Landlords.co.nz

Affordable housing developments must be built only for New Zealanders buying their first home, and not snapped up by local or foreign property investors, says New Zealand First.

The party’s associate spokesperson for housing, Asenati Lole-Taylor, is worried that the Government’s policy of cutting red tape to provide cheaper houses will line the pockets of investors.

She says developments that are put up more cheaply because of reduced council costs will be in the sights of investors, who will buy the properties and rent them out.

“These wealthy investors will not only get their hands on the rental income, but will also benefit from big capital gains if they later sell the property. This will actually fuel the property boom and make houses even more unaffordable for many New Zealanders."

Meanwhile, Labour’s housing spokesperson, Annette King, has slammed the Government’s plans for more affordable homes at Hobsonville.

A number of the properties in the development have been earmarked to sell for between $400,000 and $485,000 and tagged "more affordable" by housing minister Phil Heatley.

King said: “According to the Department of Building and housing the international accepted measure of housing affordability is that the cost of servicing a mortgage should not exceed 30 per cent of household income. Based on that, someone looking to buy into a ‘more affordable’ home in Hobsonville will need an annual income of up to $110,000.”

Source: Landlords.co.nz

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