Growing middle income welfare

Housing Minister Phil Twyford says KiwiBuild houses aren’t for the poor:

​KiwiBuild isn’t intended to help low-income families, Housing and Urban Development Minister Phil Twyford says, in the face of criticism about some of the scheme’s first buyers. . . 

To qualify for a KiwiBuild house, buyers must have joint income up to $180,000 as a couple, or $120,000 as a single person.  Buyers must be first-time purchasers or in the same financial situation as first-home buyers.

KiwiBuild houses sell for up to $650,000, for the largest homes in Auckland.

Twyford said KiwiBuild was aimed at building affordable houses because market failure has led to only 5 per cent of houses being built in this price range in recent years. 

“KiwiBuild is aimed at those families who years ago would have expected to own their own home but have been locked out of the market because of the national housing crisis,” he said.

“It is not a programme aimed at low-income families because they may not be able to service a KiwiBuild mortgage.” . . 

If the houses aren’t for the poor, why are taxpayers’ paying for them?

Houses that are only affordable for people on well above average incomes are affordable in a very limited definition of the word.

People earning that much ought to be able to afford a house without taxpayer assistance.

It might not be brand new. It might not be in the best condition. It might not be in a really desirable suburb. But it would get them on the housing ladder which is a big step above anything low income people could afford.

Labour purports to be the party that helps the poor but its policies increasingly use taxpayers’ money to help people who aren’t poor, boosting the growth of middle and even upper income welfare.

 

 

One Response to Growing middle income welfare

  1. pdm` says:

    University graduates making fellow university graduates richer – that is the ideology of this Labour led government.

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