Attempts to get onto the property ladder are being made more difficult by a government agency:
A first-home buyer has been left disappointed after Housing New Zealand, now called Kāinga Ora, bought out the apartment development she was purchasing a unit in.
The woman, who did not want to be identified, signed an agreement to buy a one-bedroom apartment in the Onehunga Bay Terrace Development, being built by Avanda.
She paid a 10 per cent deposit, of $54,200, at the start of August last year.
But in November she was told by real estate agents selling the development that the developer had entered into a conditional agreement with Kāinga Ora for it to buy the unsold units in the development.
She said she was told if that happened she would be given the chance to cancel. She said she requested more information through her lawyer but was told there was no requirement to tell her anything further.
On January 16, she was sent a deed of cancellation by the developer, cancelling her agreement. She was told she would get her deposit back, plus the expenses she incurred in the deal, such as legal fees and the cost of a valuation. . .
Housing is supposed to be one of the government’s priorities.
It won’t solve the shortage if its own agency is shutting out private buyers.
That’s unfair competition which does nothing to solve the problem of over demand and under supply.
The government should not be competing with the private sector in the housing market.
It should address the underlying reasons for the housing shortage, chief of which is the difficult and expense consent process.