What new madness is this?
Government to step in and underwrite new private house building
The Government will today unveil a radical new plan to underwrite construction of new private houses, as high interest rates and an economic downturn make it tough for developers to get finance for new projects.
The new time-limited scheme is designed to de-risk developments, making finance easier to obtain for developers to start building. Developers often have to pre-sell a proportion of dwellings in any development in order to secure finance, which has become much more difficult in the current economic downturn.
“In times of expensive borrowing, underwrites are an effective tool for supporting housing supply,” Housing Minister Chris Bishop said. “This is because underwrites increase developers’ access to finance where they otherwise wouldn’t have been able to get it, and therefore wouldn’t have been able to deliver the houses.”
Public Housing Futures has produced a map of stalled and empty Kāinga Ora sites throughout the motu, showing thousands of half-finished or bare land where work has stopped, despite close to 100,000 people being registered as homeless
This is a class war against renters subsided by the State.
This is a Government of landlords, by landlords, for landlords.
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This seems to be in line with this governments underlying philosophy “as you give, so shall you receive”.
Before the election they received a lot of donations from the private housing sector. Now, with yesterdays
Fast Track reward programme and this announcement the donors are getting their returns on money invested. Kainga Ora have only themselves to blame for a lack of support now. They should have donated large amounts of money to this coalition but they didn’t.
This Governments mantra (or should I say the “Atlas Network”) is privatise profits and socialise losses. That’s what PPP schemes are-the dream scenario for a business/corporation and the nightmare for citizens/taxpayers. This is what the ‘Boardroom’ want- the ultimate profit-making situation with little or no risk.
Yep
What a fucken joke .The government will put up $2.5 billion for private builders but wont spend the same amount building already to go public houses .Once the private builders have built the houses is the government then going to take them over for public housing ?I would not think so because they will be all over a million each at the least .While all this is happening 25k of the already under way public house would have been built and have people living in them .Then there is the issue of where are the private builders going to get staff from as most young tradies have left .Just another cock up that will be scrapped because it is going to breach the magic $3 billion figure .
“Then there is the issue of where are the private builders going to get staff from as most young tradies have left “, they’ll get them from China, and I reckon at least half of the construction companies will come from there as well. The CoC will blame Kiwis for the lack of Kiwis employed, as in “Young people today just don’t want to work”.
Has anyone yet realised how much stuff Labour was actually delivering for NZ and the fact they were not wasting money .It is the current government that is wasting billions by scraping everything that was long term future proofing NZ for all not just the very few .Now we are going to have less schools hospitals and houses along with sinking ships of all sizes .But in 20 years we will have nice shiny roads with no cars on them because no one will be able to drive them or own them .The population will be over 80 years old because all the young people will have left
Yep so fucked up.
More luxury townhouses I guess.
Underwriting private housing for developers to derisk bank lending is a direct copy of Phil Twyfords’ Kiwibuild.
We need social housing but we also need more people owning their own homes.
The benefits of home ownership are legion for families and the nation – as are the disadvantages of renting.
More development where there is no infrastructure. It’s like we are trying to be a third world country.
oh but we can truck sewage to the treatment station from storage tanks .What a joke these clowns are .The sections will cost a million now they know they are being fast tracked so will get sure money .Then there is the under write of the new house which wont sell as was the case in Ireland when they did exactly the same thing there .
National have been working 80 years since Michael Savage’s introduction of state housing to destroy the concept, so they’re not going to stop now, not when they have essentially succeeded.
Where is the good news story about the government working with Maori to build 100 homes for those in the Hamilton area who are housed in motels .
It was on the news you idiot!
But Potama struggled to answer the question about those displaced having first opportunity to be housed with his hyperbole answer being it will be decided at a governance level. In other words he didn’t have a fucking clue so why bother with the news of this at all!
Yep. That was a positive.
Yes that is a positive so why is it too hard to do in Gisborne or Ruatoria or Whanganui or New Plymouth.
It’s happening at Hopuhopu because they are desperate to get Tainui on side. They throw around the figure of $35m but I didn’t see what the split was between Tainui and Government.
Also I am assuming Waikato District Council will be picking up the cost of the infrastructure required such as 3 waters roading etc.
Not cheap this deal. $35 m for 53 houses and provision for 47 more. Given that the land is being donated the cost of the houses seem pretty excessive.
And if its such a good concept why couldn’t other vacant land owned by Government or Councils be donated to first home buyers. That would allow many young or low income people into a home at a reasonable rate. I would prefer that to government underwriting private development.
They are building more than just houses there are other facilities in the plan
Such as . Please advise. Is it schools, medical centers, playgrounds or are you talking about 3 waters and other normal infrastructure that one expects with housing development.
You can’t get away from the fact that this money is being misappropriated from Kiangaora .
Also if you cared to watch Maori TV on Mondays you would have seen the Papakaianga projects being initiated by Maori groups in deprived areas after getting shafted by various governments. These are what Luxon and Seymour talk about but while they blow hot air and pander to Tainui all of a sudden, the blokes on the East Coast and Northland and other places are getting on and doing it. This week featured a group that bought in 14 small relocatables instead of waiting for Mark Mitchell to open his disaster EFTPOS account.
They are sucking up to Tainui because the young lady that is the now MP is putting the shits up them and she will be doing so for many a yare to come .Good on her .She even has the measure of the old crock Winston sitting him on his arse on more than one occasion .
You can’t keep doing this Trevor, making statements without evidence!!!
that is money that would have built social housing in the area anyway .Just look at the Kianga ora builds that were stopped in hamilton and see where that money has come from .And how much of that is from the government .Maybe they should be building at Tokanui instead to house the staff for the new prison at Waikeria .That would be a massive earner for Tainui .
So Trevor it’s ok for the Government to help/work with Maori in housing? When it’s healthcare it’s racism but in housing it’s ok? Gee that’s consistent
What about this story, corruption of the highest order…
https://www.stuff.co.nz/politics/350444877/governments-gumboot-friday-funding-found-be-unusual-and-inconsistent
My comments don’t get posted here, maybe common sense is not a prerequisite
Developers are basically scum, they shaft sub contractors–who it must be said keep coming back for more! and cause trouble wherever they go. They and the suppliers basically went on strike over “Kiwi build” because they only want high margin jobs. Kiwi Build was not the best focus for Labour but these industry parasites put an end to it regardless.
Kainga Ora eventually got in gear and built thousands of dwellings–but now ones under construction have been halted by the Natzos and emergency housing is being collapsed–where do these comfortable bludgers with their multiple properties think people are going to live? Answer…they don’t care, but the building they will do is prisons.
Funny how they can interfere in the Free Market for housing and banking like this.
But they can’t organise an underwritten decent electricity supply to the pulp mills and whole towns are dying.
Think about the poor landlords in Ohakune, Ratehi and Taihape. Oh that’s right it’s private homeowners that are affected and leaving. Guess they’ll have to fire sale their houses to landlords.
Meanwhile my sick daughter has been hit with $140 in prescription charges in one month.
And sadly under this government electricity prices are expected to skyrocket in 2025.
People get what they vote for and what National promised I suppose.
Idiots on this site say this is the government getting things done. Yet the can’t get a decent health system done or new ferries done. Just getting landlords handouts and capital gains on PMs property done.
And weak opposition. Soooooo weak. It’s practically not even there.
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