So Labour can’t help renters OR First Home Buyers? The Economic Apocalypse will see you now
Let me get this straight, Labour can green light Billions for property speculators in one of the greatest transfers of wealth top the wealthy in NZ history, but they can’t help Renters OR First Home buyers either???
Reserve Bank concerned half of first home buyers face mortgage distress when rates hit 6%
The Reserve Bank is concerned that half of last year’s first-home buyers could face difficulty servicing their mortgages if mortgage rates hit 6 per cent.
…while ASB walks off with another $743m profit, Labour are still attempting to use failed free market ideas for a housing market mutated by no regulation.
It doesn’t matter if Labour or National are your landlord, the rent still goes up!
With inflation from global shockwaves only growing by the day, we are about to be swamped by intense economic damage.
Currently the only person on the Left even attempting to consider the impact of this is Chloe.
The people on Parliament Lawn, the dispossessed, the ones bearing the harshest economic lash of the mandates have nothing to lose.
Imagine how big it will get when the economic situation gets much worse?
To stave off an economic stampede as Covid broke out, the Government pumped billions into the banks who in turn used that to spark a speculative gold rush that will crucify renters once Adrian Orr has to raise mortgage rates.
Mortgage rates that the Megalandlord scum class will push straight onto their tenants!
The landlord class have a vast power over the renter class who have bugger all!
Surely an explosion of food inflation and oppressive rent hikes must be met with militancy!
A nationwide rent strike with clear instructions to the landlords to get the rent paid by Labour would terrify this nation of property speculators and their political handlers.
Burning down ghost houses should be next.
Previously renter militancy couldn’t be collectively harvested to be effective but social media can do that and so much more!
The politicians, landlords and banks have rigged the game for themselves – if we enter a winter of discontent from greedy landlords raising rents, we should strike back on the place that hurts them most, their wallets and their precious assets!
The truth (like everything else in fucking NZ), is that the under regulated free market has been warped by the wealthy for their interests and all Labour attempt is bullshit tinkering on the sides rather than challenge the dominance of neoliberal theology.
We have allowed the commodification of houses to be a means to make wealth and people are chasing that with all the nuance of meth addicts in a P lab.
If Labour wanted actual solutions, these 3 would do it.
1 – FLOOD MARKET WITH MASS STATE HOUSING REBUILD: End the scum landlord subsidy of housing allowances end putting money into the pockets of unscrupulous motel owners by rapidly building 50 000 new state homes. Scum Landlords can do as they please because the level of desperation amongst renters gives them total power. Flooding the market with 50 000 new state houses would rob scum landlords of that desperation.
2 – STATE HOUSE FOR LIFE: Allow beneficiaries to stay in their state home for life so that they can create stable communities and that their desperation is never transported back to Landlords.
3 – DEPOSIT RESTRICTIONS: First time home buys should be required to have 10% deposit, but the more properties you own, the higher the deposit. The reason the speculators can out buy any first time home owner is because they can use their multiple properties to leverage more debt. If you are a property speculator, you need to turn up with a 70% deposit to counter the leverage multiple properties allows them.
If Labour want to actually solve the problem they have to regulate the market and re-set it so that speculation is punished while first home ownership and housing of the poor is championed.
For too long we have allowed the the rich to dictate the rules, if Labour’s kindness is to be meaningful, it needs to challenge that dynamic.
Unfortunately Labour are not looking for solutions, they are looking for the pretence of a solution to ease criticism from their Left.
That’s ‘neokindness’.
A rent strike would force Labour to do something more meaningful than tilting their head to one side and nodding sadly!
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Dunno about burn down the ghost houses…but certainly occupy them in a disciplined manner for actual accomodation use, and empty commercial property too for whatever use. Put the fear into the slumlords, and those that unthinkingly just go along with the whole distorted property and rental scam.
This will spark support from hundreds of thousands pissed off that they are excluded but have to pay boomers Super and extortionate rents for dumps.
Or in my parents case.
A garage and a caravan on an undeveloped section(ie no sewerage, no electricity connected)
In my case an 80 year old Villa in Pt Chev whose 3 bedroom foot print would be similar to a new build 2 car garage.
Loved your idea Bomber that the Government could flood the market with new builds……Wasnt that the objective of miserably failed Kiwibuild. Where start prices were going to be in the $600k region. Keep in mind that its Government regulations that have pumped up house prices and rents.
A better strategy might be to remove restrictions. ie the Urban boundary removal. Another failed promise by this Government.
The majority value in todays houses is land cost. Which means cheap lands giving cheaper housing and lower rents.
CONTROLS don’t work!!!!
It’s not the market that has caused this problem it’s politicians thinking they can control the market – they can’t.
As for regulation being needed, it’s the regulation that’s the problem now!
What should be done? Easy – just scrap the urban boundaries to free up land which will collapse the cost of land now which in turn will force a much needed correction in the price of housing.
Central government should also invest in building infrastructure to these newly freed up areas of land to prevent councils making it impossible to build as they’ve spent too much money on signs missing key letters and silly things like rainbow crossings.
Then the market will compete to build houses on land that is much cheaper hence the cost of homes will be less.
It’ll never happen though as the greens hate and development and labour are useless. National just don’t do anything and on it goes.
We have so much land in NZ it is utterly ridiculous that people are paying hundreds of thousands for a shoe box sliver of dirt.
“If they wanted”…
But they don’t! They like this sad unjust incredibly damaging situation just the way it is. Worse in fact, they want to prices continue to rise.
They’ll continue to trowel the bullshit on and pretend they care but they don’t.
This government is such an infuriating waste of licence to change things for the better. These fools cannot see the long term damage they’re doing, not only to this country, but to the Labour movement and brand.
Labour are now firmly part of the problem!
Natz and Labeen seem to somehow all help the same people into property – on the palatial mansion boom taking up all NZ’s construction resources.
Criminals and billionaires seem to be benefiting from NZ’s property laws…. but wait, NZ government is only concentrating on taxing the local workers made up of middle and working class professionals/blue collar workers. This seems to be unfair so those people are leaving in droves creating a skills shortage that is filled by liquor barons and Covid refugee billionaires.
In some cases aka petrol tax, the council and government created the tax from the workers and can’t even spend it, millions is sitting in a bank account, unspent.
Beneficiaries of NZ’s criminal culture often launder cash into houses and cars – remember crime pays in NZ!
Liquor store owners designed mansion while company probed
https://www.stuff.co.nz/business/119602924/liquor-store-owners-planned-mansion-while-company-probed
Auckland businessman sentenced after police target professional money launderers in covert Operation Menelaus
https://www.nzherald.co.nz/nz/auckland-businessman-sentenced-after-police-target-professional-money-launderers-in-covert-operation-menelaus/KZOJ75U6V2I6PBYIUVYWQEY5E4/
$18.7m cigarette smuggling case: Businesswoman jailed, millions in assets forfeited
https://www.nzherald.co.nz/business/187m-cigarette-smuggling-case-businesswoman-jailed-millions-in-assets-forfeited/4BWFS2RDWI2SBHTERAEUCX3M2E/
Billionaires are also huge beneficiaries from NZ government policy – such as the ease to become a NZ citizen/resident or start a business here and bring in your own slave workers, while not having to pay all worldwide taxes here.
Business Insider: The Thiel Deal
https://www.nzherald.co.nz/business/business-insider-the-thiel-deal/DBP6RYXM6RM7QARFEXQXXXNBRE/
James Cameron explains dairy cows on Wairarapa farm
https://www.rnz.co.nz/national/programmes/checkpoint/audio/2018791897/james-cameron-explains-dairy-cows-on-wairarapa-farm
Some of New Zealand’s most exclusive employers claimed Covid-19 wage subsidy
https://www.stuff.co.nz/business/industries/125691018/some-of-new-zealands-most-exclusive-employers-claimed-covid19-wage-subsidy
Two remedies, make a law that anybody with NZ resident in NZ has to pay their world wide taxes here and anyone receiving citizenship or residency that no longer lives in NZ, does not quality for taxpayer paid social services any more and can’t own property here (or pays a wealth tax on any property they hold here).
Do immigration due diligence in the first place before giving out quickie NZ residency. A lot of migrants get NZ citizenship/residency only to buy up property, dump relatives and fly off to other countries to work/live while complaining how they cannot get back and forth easily to NZ anymore and how the taxpayers should pay their MIQ fees and Covid expenses after their holidays and business trips!
Only people who really want to live in NZ and actually liver here full time should own property here, the rest should pay a wealth tax or not own property here at all, the rich can rent!
Point 3 is wrong.
It needs to be with every additional house you buy you pay a progressive duty on the purchase price.
The Singapore method would help.
‘Permanent residents buying their second residential property will see the ABSD rate rise from 15 per cent to 25 per cent. If they are buying their third and subsequent properties, the rate will increase from 15 per cent to 30 per cent.
Foreigners buying any residential property will pay an ABSD rate of 30 per cent, up from 20 per cent now.’
You are correct countryboy, every government we have had since monetarism became “the Way” has been shit, and we are suffering the consequences.
The question is can we save ourselves or is it too late? It looks like it is too late because the powers that be are a ship of fools and there is no substantial ground swell against them other than those Counterspin fascist fools.