Labour says it wants to make housing more affordable.
It’s even prepared to put public money into building basic houses for first home buyers.
* KiwiBuild: a 10 year programme to build 100,000 basic homes for first home buyers (less than $300,000). In partnership with the private sector and community housing groups.
* Two thirds of the homes built in the first 5 years will be in Auckland. Others will be in other ‘unaffordable’ centres such as Christchurch, Tauranga, Nelson, Wellington and Queenstown.
* Cost: a one-off $1.5 billion initial investment, to be recouped as homes are sold. Will also sell ‘housing affordability bonds.’
Though as Kiwiblog points out that $1.5 billion doesn’t take in into account the cost of interest.
Cactus Kate points out it doesn’t appear to be means tested.
That would, like several of the bribes from the last Labour government, mean help for those who don’t necessarily need it.
Another flaw in this policy is the contradiction between this attempt to make housing more affordable and the commitment to a capital gains tax which would make property more expensive.
It’s not the only contradiction from Labour’s weekend conference. The party also voted to reduce the voting age to
18 16 although it wanted to increase the purchase age for alcohol to 20.