KiwiCon

The new owners have moved into the first KiwBuild house.

. . .”It feels amazing, it feels like we have won the Lotto,” said Jayne, who at 25 and about to graduate as a doctor, was thrilled at winning a ballot for one of the first 18 KiwiBuild homes at McLennan Park.

Jayne and her 24-year-old partner Ross, an online marketer, were on the verge of giving up hope of getting on the property ladder in Auckland before “getting lucky” with KiwiBuild. . .

This is Lotto at the taxpayers’ expense.

The new homeowners have won but Auckland Action Against Poverty isn’t impressed:

 While the Government prioritises its flagship home-ownershp scheme, tens of thousands of people continue to be homeless in Aotearoa, with no hope of being able to ever afford living in one of these Kiwibuild homes. Auckland Action Against Poverty warns that the focus on building so called affordable private housing, subject to market speculation, will further exacerbate the housing crisis, instead of fixing it.

“KiwiBuild homes are out of reach for the working poor and the unemployed, who are the ones facing the real brunt of the housing crisis. With a price-tag of half a million dollars, KiwiBuild homes are a future speculator’s dream”, says Ricardo Menendez March, Auckland Action Against Poverty’s Coordinator.

We echo the concerns of Monte Cecilia Housing Trust’s Bernie Smith, who called KiwiBuild a ‘community trainwreck’. Displacing thousands of public housing tenants in order to build private housing in public land is a form of partial privatisation of public land, and will cause distress for the tenants evicted.

“The planned net increase to the social housing stock will only be marginal. In South Auckland, the Government is planning to build 10,000 new homes, 3,000 being state homes, which will be built after demolishing 2,700. This means that altogether only a few hundred additional state homes will be available for our fast growing homeless population.

“The Government needs to recalibrate its priorities and instead focus on building far more permanent social housing than it is currently planning. For that to happen, Housing New Zealand needs to be properly resourced and public land needs to be used to house people in public housing, not unaffordable private houses.

“In a few years time we’ll have state led gentrification, with middle and high income earners being able to access some of the KiwiBuild homes while those at the bottom continue to struggle with fast rising rents and lack of social housing.

“We are calling on the Labour Government to get its priorities right and focus on the creation of social housing, instead of entrenching housing unaffordability”.

The price of the house and the age and occupation of the new owners make KiwiBuild look like more middle to upper income welfare.

If this young, professional, childless couple fit the criteria for a brand new home subsidised by taxpayers, then the criteria is wrong.

Yes it’s hard for people to buy any house in Auckland, and lots of other places. But why is helping people earning well above the average income into their own home a higher priority than meeting the needs of poorer people?

Mike Hosking calls it a con:

We may have discovered the crux of the KiwiBuild problem through some new figures from CoreLogic.

The median price paid by first home buyers for a home, for example, in Auckland, is $699,000. KiwiBuild do them for $650,000, so yes a saving, but not a lot.

What we are discovering here, is that the Government doesn’t appear to be able to do anything the market already isn’t. . . 

The real issue here – and this has become clearer and clearer with time and experience – is not the price of the KiwiBuild home, but the affordability.

At $650,000, you can call these homes anything you want. But affordable, for most, they are not.

Affordable for higher earners, a struggle for middle income people and the poor would need to win Lotto to afford them.

It’s called KiwiBuild, it should be KiwiCONstruction with the empahsis on con.

I don’t blame the couple for playing the game but do blame Labour for bad rules and bad policy.

 

 

One Response to KiwiCon

  1. Murray Roxburgh says:

    Gleaned from the slim pickings produced by a shallow media more focussed on the clear spin of a managed photo opportunity augmented by other sources, this couple about to begin a life together in their own home after winning a raffle need a four bedroom new home why?

    A quick scan of Trademe property reveals a selection of “first homes” in Pakuranga for less than the subsidised price these fortunate people have scored.

    Exactly Mr Twyford, what has this disposal of a four br home that began its journey to occupancy under a National Administration achieved for the Homeless that was center front of the Bovine Excrement that spewed from the mouths of Labour and their sycophantic enablers in the leadup to the election just over a year ago. Claimed incessently to be forced to sleep in cars, under bridges and in CBD doorways, have these people just disappeared or conveniently being ignored now the Fairy Princess is chairing Winstons Cabinet?

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