Never Fear Squatters Will Get A House
Labour will buy one with you
Not content with owning State Houses and intervening in the property market as a landlord, the State will now assist those who have already been assisted into their bludging interest-free (to them) lifestyle.
Spam provides a brief summary of this ridiculous situation that SHOULD lead to a massive New Zealand Joe Average backlash from those unable to get on this gravy train of interest freedom as they refinance their mortgages towards 10%:
Labour: The party where I, Mr Taxpayer:
* Pay to raise other people's children (WFF)
* Pay to provide tertiary loans to university students (after paying back my own loans)
* Pay the mortgage on other people's houses (as well as trying to pay my own).
Not content with owning State Houses and intervening in the property market as a landlord, the State will now assist those who have already been assisted into their bludging interest-free (to them) lifestyle.
Spam provides a brief summary of this ridiculous situation that SHOULD lead to a massive New Zealand Joe Average backlash from those unable to get on this gravy train of interest freedom as they refinance their mortgages towards 10%:
Labour: The party where I, Mr Taxpayer:
* Pay to raise other people's children (WFF)
* Pay to provide tertiary loans to university students (after paying back my own loans)
* Pay the mortgage on other people's houses (as well as trying to pay my own).
posted by Cactus Kate at 1:46 PM
3 Comments:
As I said back in May last year when this idea was first suggested:
"Is it me, or is this idea completely and utterly insane?
As a first home buyer (soonish) you'd expect me to be the first to support anything that would make it "easier" for me to get into property, not having to pay 25% sounds like a good idea from teh outset, but when you actually consider the economics of it, it gets a bit sketchy.
Firstly, this is the government proposing to *subsidise* 25% of a properties value. So for most places this would be about $100,000. To put this in perspective, what have I done, to make me deserve $100,000 of your money - why do I deserver it more than you do? why am I so special? The correct answer is, nothing, I am no more deserving of the money you earnt than you are. I can't support the use of force, to have my assets subsidised by your work.
Then theres the actual economics of it. This is going to drive demand for housing even more, you are giving people more incentive to borrow and purchase, which with current levels of supply staying static at the same levels of growth means that you are going to have an even larger excess of demand over supply.
And any kid who's managed to scrape a C pass out of 4th form economics would remember that an increase of demand over supply will drive an increase in prices of said product.
So - this concept, which is meant to be a solution to rising house prices pricing people out of the market does the exact opposite of what was intended. It uses your money, to allow me to purchase. Then, it increases demand while doing nothing about supply, further inflating prices, with no real positive gain.
So end result is massive amounts of Government spending, but if supply is the same, no real gains. Those who already own property will experiance windfall profits due to government intervention, first home buyers who get in straight away before the market corrects itself might do ok out of it and also make some capital gain - but on average it will do nothing positive.
An this is why an understanding of economics and incentives is required before making policy decisions. While it will likely win votes from people - its unlikely to have any positive effects, but will have some nasty unintended consequences!"
Still, if this comes to happen, thank you kiwi taxpayer for subsidising my capital gain.
WTF is NZ coming to now I remember why I choose to live in Aus. Mind you Kev and Co would be an odds on to try the same or at least encourage the banks to have a crack at it. Mind you would be good for my biz. TB
Are you kidding? this is great news.
Yet another socialist wealth redistribution scheme. It's a virtuous cycle - the more desperate Labour gets, the more socialism they throw at us. This in turn causes them to be less popular.
I predict that come election day they will have negative support :-)
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