I love Grant Robertson, great guy, love to have a beer with him.
B-U-T
His comment that renters can just leave Landlords who raise their rents is insanely out of touch…
Housing crisis: Tenants can ‘look elsewhere’ if landlords hike rents – Robertson
Property investors are threatening to increase rents after the Government on Tuesday announced they’d no longer be able to claim back interest costs for tax purposes.
But Finance Minister Grant Robertson says it won’t “necessarily” push prices up, because renters have the option to “go looking elsewhere”.
…what fucking planet dos Grant liv on?
Why Planet Key of course…
…we here at TDB are asking for renters to dob in scum landlords and we will name and shame the for raising rents.
Grant and Labour have been warned that the speculators are going to harm renters so must move to shut down spiteful slumlord speculators with penalties on ghost houses, rent freezes and permanent tenancies.
Good landlords have nothing to fear, spiteful slumlord speculators should always have something to fear.
And to all those landlords screaming they will now sell their rentals because of today’s announcement – GREAT! Flood the market and crash those prices now!
We dare you!
We double dare you!
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They won’t sell.
They will raise rents. Why?
Because they can.
Don’t know why they didn’t impose a rent rise cap (say, no more than 2% per year).
We have a nationwide AS system. It identifies regional variations in rent costs and applies income support based on them (and probably needs to be updated because of provincial rent rises).
This will have cost for government and invite landlords to increase rents further.
In a short supply windfall profit market this is problematic.
So we need a schedule of maximum rent per capital value (initially use the last official valuation), so they are always a little historic (up to 3 years so). Once the loss of interest deductability applies allow values to be set by current assessment adjustment)
This means landlords are not able to increase rent beyond the maximum allowed for one of that value.
Oh dear me, this is another Grant “Let Them Eat Cake” Robertson special announcement. You may have heard of him from other talks such as, “Beneficiaries are fine, everything is fine.” Little did Labour realise when they “went to war” that all they were doing was rolling grenades around their own boardroom. This is going to be so funny to watch. Despite the wailing and threats, the people least in danger are tenants, because, you know… the law!
Don’t worry the two PM’s who complicitly aided and abetted this giant ponzi scheme for two decades by doing nothing, or next to nothing on the supply of state or affordable housing. Nothing, or next to nothing on the VERY property investor friendly tax laws. Nothing on overseas property investors.
A hell of a whole lot of fast and furious mass immigration. A lot of accommodation supplements to landlords to allow them to keep hiking up rents, Wff to enable big business to keep paying as low wages as they could possibly get away with, and who both personally did wonderfully well from their property ponzi friendly policies, are now doing a sweet, sweet, charm offensive.
Helping save kiwi’s of the feathered variety. Aren’t they so wonderful and nice.
The NZ housing system is essentially an abuser vs abused scenario where the police (Government and RBNZ) question both parties; the abused (renter) is too scared to make a complaint for fear of further abuse. The abuser (landlord) shouts the loudest and threatens the police with legal action if they are not left to do as they please saying they are innocent of any crime and it is the abused victim who is lying. For some reason that I cannot understand, this government has decided to not see the plight of the abused. Until this abject failure of duty is addressed nothing will change. Renters need a #MeToo movement and Jacinda and Grant need to take responsibility for the pain they are enabling. Cruelty must stop!!!
I’m sure Grant would love to have beer with you too bomber. Why don’t you write him a Pink letter?
Its pretty scary isn’t it?
Both he and Jacinda, hugely financially comfortable, both deep middle class, probably wanted for nothing all their lives are just plain unaware of our housing meltdowns consequences apart from the very narrow sliver of its political risk.
How can you fix something if don’t even understand the problem?
Grant believes competition will set us free. Its what the books say. It just might Grant, if renters were buying a new TV. But they ain’t. They are in a residential bear pit that puts cartels to shame.
It does explain however why housing has not been seen as an issue to Labour, only a mere political consideration.
Please, for God sake find someone who can do a paint by numbers diagram that helps you understand how and why our housing market is the biggest calamity facing this country bar none. Because you guys just dont get it!
When renters are rented-out. And all hope in Grant and Adrian is gone. Look elsewhere and occupy vacant buildings. There are more houses deliberately left vacant than there are homeless. This would give the finger to landlords and panic them into either renting or selling which in both cases would rapidly boost the supply side of the political equation for buyers and renters. Occupy! Revolt!
At least there are two of us…I have been saying for a while that direct action arising from community/NGO/Left working class organisation is the only thing that will shift this neo liberal Govt.
Well planned occupation of appropriate reasonably high profile empty properties–commercial, residential & state, will soon have the capitalist class bricking themselves.
Grant breathed a huge sigh of relief after his confession, like a huge load was lifted between his shoulders: “I believe in hands-off free-market capitalism” he declared, and the good Lord saideth “Go forth and do nothing”.
Neoliberalism – Neokindness – Neofeudalism. Landlords and the Banks are the Barons Renters are the hapless peasants. Blaircinda and Grant the uncaring let them eat cake monarchs.
No one seems to be talking about the source of all the money that is forcing house prices through the roof. It is the $140 B odd dollars that the Government has negotiated with the Reserve bank to put into circulation through the trading banks to stimulate the flagging economy: the need being blamed on covid, but the world economy was in dire straights any way. The safest and most reliable customers for banks to land that money to are property speculators buying houses as fast as they can to take advantage of the tiny interest rates and the massive capital gains. Where else did they imagine all that QE money was going to go? Not to build a sawmill or drill for oil that’s for sure. Much too risky and politically repugnant.
The spinoff of extremely high and increasing house prices in an economy working at all , should flow quickly on to a profitable industry building new ones . If that is not happening , or only to an inadequate extent, then why not? and the answer is that though the house price inflation is through the roof councils are keeping pace with it in their demands of limitless compliance and consent charges. Local and national level government has this in their hands. It’s no use blaming the section of the public with resources to invest investing in the most attractive market. And disincentivising them by singling out house letting as a business as being ineligible to claim interest charges off their income tax is completely counterproductive to the market responding to a need for housing. The landlords drive the building industry. If you de incentivise them you de incentivise the builders. It is a stupid move and my confidence in Grant R, who I had begun to think had his head screwd on OK has collapsed.
Dave Brown above has the issue that spoils the functioning of demand and supply beyond the take of local government though. And while there is enough capital gain to be pocketed to make renting nothing but an inconvenience, and a terrible hazard if you get the wrong tennants and can no longer evict them, the ghost houses have no natural limit to their natural proportion of the market. There is no reason if inflation continues in house prices to expect any houses to be available to rent. The whole city could become empty .
How you fix this problem without collapsing the bubble I don’t know. The main driver of prices at the moment and for a long time is the fact that they are going up at an ever faster rate and you can borrow all the money from the bank if you are already in the game. It is self perpetuating like Garlic bulbs 40 years ago and goats 30 years ago and Black tulips almost 400 years ago and Bitcoin today. There will always be a residual value in houses as everyone needs one but the dynamics are the same. So as soon as the price rise has been arrested , the main driver will be gone. Some people will be forced to rent to pay the interest bill, some will be forced to sell at a loss to owners who expect to rent the property out, the demand for rented accomodation will be filled by the ghost houses coming to life , and who knows where it will all stabilise .
D J S
I can’t find your official response to Labour’s new housing policy. I have to say I’m rather pleased with it. Just lacks a massive building programme. To be encouraged. Though I’m waiting on Bernard Hickey’s opinion. A little force from this government. Encountered a youtube ad from our PM.
‘And to all those landlords screaming they will now sell their rentals because of today’s announcement – GREAT! Flood the market and crash those prices now!
We dare you!
We double dare you!’
That’s the problem for people with money. There is next-to-zero interest on bank deposits, and bonds, and all the share markets are in over-valued-impending-collapse territory.
Property supposedly holds value. But even that is a myth and there have been plenty of times when prices have fallen.
The biggest crash in history is coming soon. According to Gail Tverberg of ‘Our Finite Planet’.
Within a few months to a year, the worldwide debt bubble will start to collapse, bringing oil prices down by more than 50%. Stock market prices and prices of buildings of all kinds will fall in inflation-adjusted dollars. Many bonds will prove to be worthless. There will be problems with empty shelves in stores and gasoline stations with no products to sell.
‘People will start to see that while debt is a promise for the equivalent of future goods and services, it is not necessarily the case that those who make the promises will be able to stand behind these promises. Paper wealth generally can be expected to lose its value.’
https://ourfiniteworld.com/2021/03/20/headed-for-a-collapsing-debt-bubble/
Of course Gail is not the only one highlighting the ‘Everything Bubble’ and its impending burst.
Ardern and Robertson are national party clones.
The absolute rejection of anything resembling a a capital gains tax with no explanation is outrageous.
The media disinterest is contemptible.
It is a topic worth discussing.
The douglas, prebble,moore richardson, shipley, richardson, english, key propaganda rolls on.
Give the wealthy tax breaks, reduce state help to non business people and we have a happy society of homeless desperate people with no employment or wages worth getting out of bed for.
ardern and robertson sleep easily as do the wealthy and comfortable the wealthy in their own houses.
Renters and homeless do not matter, real national party dogma.
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