The Housing crisis will spark a revolution for the Māori Party  

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By flooding the market with $100billion in cheap money for corporate banks to shovel out to property speculators, Labour have created an enormous rupture in prices locking entire classes out of home ownership while leaving them to the rapacious greed of the venal free market landlords.

Labour’s refusal to relaunch the Ministry of Works and build state houses ourselves, their refusal to limit lending to speculators, their refusal to consider a capital gains tax, land tax or wealth tax means those on the bottom must loose all hope of ever owning a home or having stable renting rights.

Parliament is overwhelming fill of home owners and speculators so to expect them to do anything meaningful is a joke.

As Bernard Hickey points out, the Boomers will not share their wealth…

How past generations pulled up the property ladder on today’s youth

TDB Recommends NewzEngine.com

The prospects for a “just transition” to carbon zero by 2050 are so infinitesimally small as to be not there at all. That’s because the intergenerational wealth transfer that happened over the last 30 years so dominates our political and economic landscape that the savviest and most pragmatic politicians know it cannot be turned around. They just hope the young haven’t worked it out, don’t notice, and don’t try to really shift the political centre of gravity.

…which is why Boomer taxes will be a big deal in 2023, because it’s the first time Gen X + Millennials will be a bigger voting block than Boomers…

Could Boomer Tax be a glimpse of the future and help solve generational inequality?

The recent furore over house price inflation has sparked a fresh debate over generational inequality.

Young people are angry about a lack of affordable housing options as valuations continue to soar.

Housing isn’t the only issue for younger generations, who are frustrated about their income security, debt burden, and building their careers following two of the worst financial crises in history.

…Bryce Edwards makes the point that we could lead the world like we once did…

New Zealand once led the world on social housing – it should again

Billions of dollars are currently being transferred to wealthy New Zealanders in the government’s attempts to stimulate the economy. The Reserve Bank has essentially committed to printing up to $128bn (US$90bn) of new money, lending much of it as cheap credit to banks, who then lend it to those who can afford to buy more and more houses, and thereby grabbing the capital gains.

The result is rocketing house prices, making accommodation unaffordable, especially for those seeking to buy a first home or rent accommodation. In fact, this week New Zealand was named as the seventh most expensive place in the world to buy a house.

…unfortunately Labour care more about their new speculative voters than their actual voting base.

The Greens are hopeless and their criticism is meaningless while they are Labour’s table which leaves the Māori Party to advocate for a revolution in housing.

This is their current housing policy:

  • Build 2000 houses on ancestral Māori land within the next 2 years.
  • Ensure fifty percent of all new social housing will be allocated to Māori.
  • Ensure immigration to New Zealand stops until supply is able to meet demand.
  • Stop all sales of freehold land to offshore foreign interests.
  • Place a 2% tax on the capital value of vacant houses if they remain unoccupied for 3 months or longer in any one year.
  • Ensure the Overseas Investment Act applies to all residential housing purchases.
  • Add a Capital Gains Tax on all property set at 2% of the appreciation per annum (other than on the whānau home).
  • Ensure the Government re-enter the housing market to develop and build state housing stock.

You can imagine how popular these will be after another 3 years of speculation and greedy Landlords, especially when NZ faces a tsunami of immigration once the border restrictions are lifted.

Labour is actively crafting their own demise by refusing to do anything meaningful on Housing.

 

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27 COMMENTS

  1. The housing crisis, combined with neo-colonial levels of migration, will spark civil conflict… prepare your kiddies to fight in it or flee from it…

    • Collapse happens very slowly and the all at once. Collapse is easy to diagnose in hindsight, but in real normal people are too invested to care. Just like an old Nordic island there will be flashes in the pan as normal people discover new norms, and not in a good way.

      • Can you name another “country” with a higher proportion of foreign, i.e. non-citizen voters? *crickets chirping* Perhaps consider the factors that make you not want to see it, or unable to see it… because No Zealand Wars II is the writing on the wall 😉

  2. The banks, insurance companies, real estate agents, property developers and the CEOs of councils will be rubbing heir hands with glee!

    ‘The national median house price increased by $24,000 last month

    The housing market ended spring firmly in boom mode, with the number of sales hitting their highest level for any month of the year since March 2007.

    According to the Real Estate Institute of New Zealand, 9885 residential properties were sold in November, up 29.6% compared to November last year.

    That was the highest number of sales in the month of November since 2006, which was in the thick of a major property boom.

    The market was particularly strong in Auckland, where 3728 residential properties were sold, up a whopping 53.9% on November last year, giving the region its best November sales ever.

    After Auckland the biggest annual percentage increases in sales were on the West Coast +74.4%, Northland +36.1%, Canterbury +31.7%, Bay of Plenty +29.5%, Nelson +25.8% and Waikato +21.9%.

    Only three regions recorded lower sales compared to November last year – Marlborough -5.3%, Gisborne -4.3% and Hawke’s Bay -1.8%’

    https://www.interest.co.nz/property/108364/national-median-house-price-increased-24000-last-month

  3. To be fair to Labour they are not just refusing to do anything meaningful about the housing crisis. In fact they are refusing to do anything meaningful at all. How could 2 Maori MPs come up with such a simple but comprehensive list of policy on housing when the whole Labour party could only come up with the idea of printing as much money as they can and giving it to the Australian banks virtually interest free.

  4. There’s no housing crisis but there is a dumbass crisis.
    Was their a gas released that’s bleached the ” Hey wait a minute? What the fuck’s going on here!? ” out of people?
    Hello? Yoo Hoo?
    AO/NZ Land area is 25 thousand square kilometres BIGGER than the UK which has a population of over 60 million?
    AO/NZ has a population of a medium sized Australian city at a fuck all 5 million.
    Canterbury @ population of 660,000 is the same land area as Holland which is home to about 17 million people.
    You been for a drive in to the big-flat-green AKA BFG or ‘The Countryside’ lately? You seen how many fucking pine trees there are out there?? There’s enough timber to have ten houses each! You been to Bluff recently? You seen Wood Chip Mountain there?
    Homelessness is a head fuck. So is poverty among the poorly paid yet employed and how about all the child-suffering. Wee kids with crumbling teeth who are obese at 8 and tomorrow’s walking dead because fruit and vegetables don’t grow on trees you know? Oh, wait a minute? Yes, the do! But where are they?? Wattie? Can you help with that one?
    We have an amazing country, we are incredibly lucky, we are all fucked in the head.
    We have a radically loony mindset, if you could describe it as such, in AO/NZ. We fawn over our abusers and fight each other in the pub. We make do instead of demanding better.
    We are indeed… fucked.
    That old runt roger fucking douglas needs hung up, we must to crush the foreign bankster and we must renationalise our assets and fuck the foreign investors to Hell. And we need to bend our traitorous super rich and fancy over and go up them with a financial search party.
    We need to grow a pair of big hairy balls and go and kick some arse because it’s all about the anatomy.
    If we don’t act radically and very, very soon, we are fucked.
    We’ll have our country taken away from us while we’ll barely notice until it’s too late.
    House prices in AO/NZ is an entrapment. A racket. The money we’re borrowing is really the sale price of our country.
    Foreign money lenders are effectively buying our country out from underneath us at a quarter acre at a time and guess what dumbasses ? They’re not making any more land.
    I’m now absolutely certain that most people have no idea of just how perilous these times are.

  5. You can pretend it is boomers driving the housing crisis, but that is doing a disservice to those without housing and the government who wants to keep immigration going again as a lazy way to keep NZ afloat…

    Rest of NZ laughed at Auckland’s housing crisis caused by immigration and refused to believe that 1 million new residents in 10 years were affecting housing. Now it’s not just housing but water, congestion, sewage, education, health care, justice, prisons…..

    The government changed legislation to the encourage immigration to the provinces such as in 2018 and before Covid

    “To support that transition, students who study sub-degree courses outside Auckland will be entitled to a two-year open work visa if they complete their qualification by December 2021,” Mr Lees-Galloway said.”

    The result is immediate with housing outside of Auckland immediately going through the roof with shortages getting worse each year… note it’s not rental investors otherwise there would be a surplus of rentals for people … houses are selling to the thousands of new people and their dependants coming to NZ off the back of woke legalisation and ‘lazy educational masters’ of xyz, that the lefties encourage!

    Buyers block street as 400 punters flock to open home over three days
    https://www.stuff.co.nz/life-style/homed/housing-affordability/123681448/buyers-block-street-as-400-punters-flock-to-open-home-over-three-days

    1 in 10 people in quarantine are overseas workers coming to NZ…. once they open the borders NZ will be a bloodbath of incoming people with all the people who qualified for NZ residency over the years coming back as well!

    Immigration: Labour manifesto signals significant changes to border, visa rules to ‘get more people in’
    https://www.newshub.co.nz/home/politics/2020/11/immigration-labour-manifesto-signals-significant-changes-to-border-visa-rules-to-get-more-people-in.html

    Leftie commentators wringing their hands on NZ poverty and homelessness only have themselves to blame as they are joining the right wingers encouraging more people into NZ in 2020!

    • What happens when education becomes about money and profit from overseas students and the money going into new schools, is for construction of buildings for more students, not actually providing a good education for those students already here!

      New Zealand students record worst results in maths and science
      https://www.stuff.co.nz/national/education/300178702/new-zealand-students-record-worst-results-in-maths-and-science

      Shared classrooms, ‘woke’concerns of safety and identity overriding real educational outcomes. The problem in NZ is that they create experiments and then go crazy justifying the poor results by bureaucrats and right wing media, instead of stepping back and stopping the rot – it is not just housing that is suffering, a significant proportion of the next generation of students are victims in all this.

      (Official view is apparently to blame the parents! Funny, before Rogernomics and our experiment in globalism, our educational abilities were much higher. Apparently the media and advisors now think it’s because parents have got much worse in 20 years with less books and truancy).

      Like housing which the government has been solving by bringing in 1 million more people to solve the crisis, it doesn’t seem to be working cos the millions of new workers don’t seem to be toiling in the horticulture fields, fishers, construction etc, as there is still all those mysterious worker shortages! Not buying it!

      Now we have bodies in the student halls as the offshore businesses profit from having the contracts for student accomodation. What penalty was given to business led, education, Campus Living Villages?

      Death of Mason Pendrous
      https://en.wikipedia.org/wiki/Death_of_Mason_Pendrous

      “CLV is one of the largest higher education student housing providers in the world.[2] It opened its first student village at the University of Sydney in Australia in 2003 and has since expanded internationally to own, manage or develop over 45,000 beds across Australia, New Zealand, the United Kingdom and the United States.[3]

      A number of Australian pension funds back the business”.

      Not sure business is providing the same service as universities did 30 years ago, when education and accomodation was not run by multinational profit driven interests.

      • 80,000 arrivals during the lockdown have to live somewhere, close the borders unless you can prove you have somewhere to live permanently. Too many people here, infrastructures cant cope, its a disaster happening

  6. Ardern’s astounding second contribution to this major problem has advanced from the pathetic whimper of saying housing can’t keep going up the way it is to say she only wants “sustained moderation” and she would like to see small increases in house prices. Our PM is nowhere near enough satisfied housing is expensive enough, god no, for her ongoing capital gains are a must-have. She clearly doesn’t see housing as a primary need, she sees the get rich quick – greed is good as a staple of NZ culture. You can now see why Labour are so useless and spineless because Jacinda is now firmly part of the problem. Her government is not only complicit in this disaster, but it’s also promoting it.

    And please Labour, shit can the focus-grouped bullshit response that this has been a growing problem with successive governments for the past 30 years and then rubbing salt into the wound by doing precisely the same as all those others. For fuck sake, you two-faced creeps!

    However, there is a solution of sorts. Ngati Whatua has just renegotiated the ground rents of a substantial amount of prime real estate in Auckland CBD. There are an awful lot of empty units for those previous lessee’s burned by leaking buildings and losing massively because leasehold property is worthless. Parnell Terraces, surely the perfect answer to housing affordability and homelessness. How about the Maori Party have a word to that tribe, use their connections and get them to start offering those prime apartments to their own people at a massive discount? And ensure it’s affordable forever. You know, social housing. Or is taking the initiative, walking the walk and looking after their own peoples, all bullshit too?

    • Yes it’s a great idea, but in my experience the business arm of maori organisations are basically pakeha values with a bit of window dressing. Occasionally you’ll find someone around who espouses and follows a maori world view, but they have no more power within their families than if your sibling was a bit eccentric. Everyone loves their quirkiness but there’s no way anyone is listening or changing. Asking people with money to spend it for the sake of their own is like asking people to pull out their teeth with a set of pliers. I’m not astonished that people are greedy and selfish, but I am a bit astonished at how quickly the average new zealander picks up and accelerates their participation in greed. It’s like they’ve been waiting their whole life to do something nasty. Like a thirsty guy in the desert, finding an oasis. Anyway, the solution is obvious, but everytime I suggest it people find a list of reasons as to why they can’t as long as their local motorway. They won’t even start. Like if you asked them to crack a window while smoking they’d complain of the cold, in February.

    • It is her constant gaslighting of beneficiaries and the NGO’s, she constantly justifies the increase of $25 they should be all so grateful with that, I mean FFS how can she then utter in the next breath the politics of kindness. It’s just so hypocritical.

  7. ‘Labour is actively crafting their own demise by refusing to do anything meaningful on Housing.’

    Surely that is a good thing…..’Labour’ working towards its own demise, because ‘Labour’ isn’t Labour. It’s National in disguise. It has been National in disguise since 1984. And it’s only with National and Labour completely gone that ANY progress can be made on ANYTHING.

    On the other hand, the voters of NZ are so ignorant and stupid they will probably all flock back to National when Jacinda makes a mess of EVERYTHING. As it is, everything is in a worse state than when she declared “Let’s do this.”

    Whatever happens with respect to the clowns and criminals in parliament, 2023 will be a very different world: atmospheric CO2 will be around 228 ppm; there will probably be no ice in the Arctic Sea in late summer’ multiple hurricanes and typhoons will be demolishing everything in their paths; the Australian economy will be down the gurgler after picking the idiot government there picking a fight with China (well the part that hasn’t been burnt to a crisp, hat is); the American dollar Ponzi scheme will have imploded and the Disunited States will be even more disunited or will have fragmented into who knows what, as per the USSR. But with all the easy-to-extract oil long gone and a generally fucked environment there will be no resurrection or redemption.

    With grain supplies under extreme stress a loaf of bread will probably cost $5. And a house in Auckland around $2 million.

    Sewage will still be washing up on beaches -very likely more than ever. And the air will be a bit less breathable.

    With Peak Oil well in the past and unconventional oil likely down the gurgler because of the financial implosion, the big question will be whether NZ will still be able to access imported oil to run its car-dependent society.

    Whatever the case with respect to oil imports, we will be able to rely on the clowns and criminals in parliament to make everything that matter WORSE as they have been doing since the time of Norman Kirk.

  8. Nothing stopping Iwi building houses on the land they own for their people and charge affordable rent/selling price….or is there an unwritten rule amongst the fat cat Iwi leaders to not do this as it means they will have to spend their own settlement money?
    Just curious.
    Yes you may all shout “its the Govts duty to provide housing”, but where are the Iwi leaders (ones with settlement millions in the bank) looking after their people in all of this?

    • Er didn’t one Iwi in South Auckland just try and build a whole lot of houses for their people but another part of that Iwi protested against it, preventing hundreds of houses being built???

      Why would anyone (Iwi included) want to build any houses on ancestral land, if at that same time property rights will be deemed irrelevant by the mob and a complicit govt who stick their noses in when they should STFU

  9. OK, so the Maori Party might actually have some useful policies.

    One reservation about this statement: “Build 2000 houses on ancestral Māori land within the next 2 years.”

    “Ancestral Māori land” could mean anywhere in NZ, but what does the Māori Party mean by that term?

  10. Being a bit hard on the messiah aren’t we, the promises are all in the manifesto so surely it’s all going to be implemented, bringing forth the transformational change that was promised and predicted, by those who weren’t paying attention, to her true Blairite roots and instead voted on Adern having saved us all from certain death.
    NZ has the leaders they deserve, and will continue to deserve as the political cycle of failure and neo lib economics, rolls on.
    Unless 100s of 1000s of kiwis can be mobilized to hit the streets and protest demanding change, I doubt that change will ever come about, but seeing as more people are interested in hitting the streets for boxing day sales, due to greed and being neuron deficient, you’ll never see that will for political and social change eventuate.

    NZ LabourNZ Labour Party
    Housing

    Labour is making sure every New Zealander has a warm, dry, safe place to call home – whether they rent or own.

    There is no silver bullet to solve the long-term challenge that is the housing crisis, but we’re making good progress.

    If re-elected, we’ll continue to build on our progress with our five-point plan to support new housing during the economic uncertainty of COVID-19:
    We’ll support construction through the Residential Development Response Fund, enabling builders and developers to apply for support to help them get on with the job
    We’ll deliver 18,000 additional public and transitional houses by 2024
    We’ll continue to support first home buyers with First Home Grants and Loans, progressive home ownership and KiwiBuild
    We’ll work with the industry to improve productivity through the Construction Sector Accord
    We’ll remove planning barriers to residential construction, including by replacing the RMA to reduce cost and complexity
    We’ll also regulate property managers to protect landlords and tenants, and continue our progressive homeownership scheme.
    Healthy homes, healthy children and healthy hearts are the focus of a new policy designed to drive down our rates of rheumatic fever. If re-elected, we will:
    Expand the Healthy Homes initiative for housing basics like heaters, curtains, bedding and floor covering
    Strengthen healthy home compliance and enforcement efforts by Tenancy Services
    Introduce a national register to actively track and treat rheumatic fever patients
    Find more detail on Labour’s housing policies here, and extra information about our policy to drive down our rates of rheumatic fever here.

    Labour’s plan
    Labour is already rolling out our plan to make sure every New Zealander has a warm, dry, safe place to call home. That’s why we are:

    Funding 8000 new public and transitional homes, which will provide a significant boost to the construction sector and wider economy and take the number of new public and transitional houses we’ve provided to around 17,000
    Scrapping the need for consents for low-risk building work, such as sleep-outs, sheds and carports, saving homeowners around $18 million in consenting costs each year, unclogging the building consent process, and making minor home improvements quicker and more affordable
    Helping to keep Kiwis warmer and healthier with our Warmer Kiwi Homes programme by funding improvements to around 9,000 additional low income households, on top of the more than 20,000 warmer homes we’ve already delivered. This will also help to protect people from respiratory disease and create jobs.
    Labour will continue rolling out a Progressive Home Ownership scheme that will support lower income families struggling to pull together a deposit, or pay a mortgage, into home ownership.

    Labour will continue to implement our Homelessness Action Plan to prevent and reduce homelessness. Our plan aims to prevent people from becoming homeless and reduce reliance on motels for emergency accommodation.

    Labour will continue to partner with iwi and Māori housing providers to get more whānau into healthy and secure homes, and to create solutions to the housing crisis beyond COVID-19.

    Labour’s achievements to date
    During the COVID crisis
    We’ve supported Kiwis through the COVID-19 crisis to remain in their homes with our six-month freeze on residential rent, our pause on tenancy terminations and our six month mortgage holiday for homeowners affected by the economic impacts of COVID-19.

    And we worked with community organisations, iwi and councils to urgently provide over 1,000 vulnerable people with a place to stay to keep them safe from the potential spread of COVID-19. We’ve committed further funding to ensure people can stay housed until long-term housing supply is available.

    Before the COVID crisis
    In our first year, we banned offshore speculators from our housing market to slow rapidly increasing house prices and making it easier for first home buyers to get on the property ladder.

    We’re delivering more public housing than any other Government has in decades, delivering 3,695 new public houses since 2017. We turned around the state housing decline by putting an end to National’s state house sell-off and ramping up our state house building programme, with Kāinga Ora now building more than 25 new houses a week.

    We’ve taken action to break the cycle of homelessness, helping hundreds of homeless people get into a home with wrap-around services through expanding Sustaining Tenancies, Housing First and adding 1,400 extra transitional housing places.

    We’re making life better for renters, too. We changed the law so all private rentals have to meet minimum standards to be warm and dry. We’ve better balanced the rights of renters and landlords by banning unfair letting fees, and reforming the Residential Tenancies Act.

    The construction industry has boomed under Labour to build the homes, hospitals, schools, and other infrastructure New Zealand needs. New dwelling building consents hit a 45 year high, we saw record building apprenticeships, and we have worked side by side with industry through the Construction Sector Accord. Together, we’re implementing the Construction Sector Transformation Plan and the Building for Climate Change programme to ensure a more productive, sustainable and inclusive building and construction sector.

  11. ” By flooding the market with $100billion in cheap money for corporate banks to shovel out to property speculators, Labour have created an enormous rupture in prices locking entire classes out of home ownership while leaving them to the rapacious greed of the venal free market landlords. ” From Chris leitch’s email The government already owed this sum from the revious sale of government bonds. The reserve bank has bought back these bonds on the secondary market. ” ‘ The secondary bond market is the marketplace where investors can buy and sell bonds. A key difference compared to the primary market is that proceeds from the sale of bonds go to the counterparty, which could be an investor or a dealer, whereas in the primary market, money from investors goes directly to the issuer. ‘
    However:
    Correct me if mistaken: The reserve bank is making an extra 28 billion available to commercial banks for lending out purposes. If fractional reserve banking applies they could lend out 10 times that amount?? and it’ll go into property! 🙁

    Large scale squandering by the Reserve Bank
    https://www.positivemoney.org.nz/pm/large-scale-squandering-by-the-reserve-bank/

  12. Putting all the political polemic aside, what’s really going on?

    The housing crisis has been manufactured almost entirely by local government. Mainly in Auckland. Ardern had one decent policy in her previous term and that was to force the council to remove the rural/urban boundary so as to free up land for housing, but she dumped it, presumably so as not to tread on Goff’s toes.

    Just as CB says further up in the comments – we have *vast* areas of land to the north and south of Auckland that is marginal as regards agriculture and so is ripe for development. But it won’t happen while the current bunch are in control of the council.

    Meanwhile the Boomers are selling their renters in large numbers and for good reason:
    >They’re retiring and want to cash out
    > Prices are currently high
    > Labour’s anti landlord polices have made the business less attractive. Another own-goal for Labour!

    They’re selling them almost exclusively to owner/occupiers: To young couples taking advantage of low interest rates or recent returnees with cash in hand. This means rental stock is fast disappearing. It’s not hard to see an absolute calamity facing Labour as it tries to get reelected in three years time. One that they can’t blame on the previous government this time around. Put the popcorn on because it’s going to be hilarious watching Ardern crash & burn.

    • @ Andrew, How do we get to the +vast+ North and South on our one road system and appallingly poor and expensive public transport that actually doesn’t do the backstreets…. Teleport?

      Try getting up North through Wellsford. Or going South. There are normally at least four truck accidents and break downs per week.

      Look what happened in Kumeu with the ‘one road’ and now Fletchers have bought 109 Ha of land in Taupaki that is zoned rural but no doubt will put in a private plan change for housing, no doubt all rubber stamped by council and the rate payers paying for it. Big Business don’t buy in a zone that actually is zoned for housing. Then they can bid for their own roads for their own subdivisions.

      After organising the roads which in NZ takes years of congestion before going onto years of road repairs, we then have to work out how to pay for the water, sewerage, schools, hospitals needed in those areas…

      Then food costs a fortune because all the land is now rezoned and you have to truck it long distances. Thus back to all the truck break downs on the roads these days.

  13. Bryce not doing his survey on Mike Moore being described as a ‘working class hero’ disappointed. Major misrepresentation of reality. No one said anything and so surrendered a squab of reality closer to Trump’s America. Nowt to the general picture but it hurt ’35 social democrats. And we believe we are better than the powerful who direct us at the moment.

    (Scathing, Jim)

  14. Apt point. Here in Gisborne it feels like a revolution with no qualifiers.

    We rely on the kindness … of landlords, and there is much fellow-feeling.

    Politics has become a high culture thing, by which we die.

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