The imbalance between supply and demand for houses in Auckland which is the biggest factor behind swiftly rising prices there didn’t happen overnight.
It has been building for more than a decade and local and central governments should have been addressing the issue years ago before it got this bad.
Who was leading the government for nearly a decade as the prices soared?
Oh yes, Helen Clark and she’s part of the problem of houses owned by foreigners.
It’s a mark of how bogus the housing debate has become that Labour’s figures about foreign owners of New Zealand houses almost certainly include former leader Helen Clark and her four houses. . .
Labour says more than 11,000 foreigners own houses here they don’t live in.
. . . What Mr Shearer didn’t say is the figure comes from “non-resident” taxpayers who pay tax on houses they own in New Zealand.
Most of those are ex-pat Kiwis who are renting out property they own here while working overseas.
How could Labour put out a policy so badly researched?
This conversation on twitter explains it:
Shearer’s ‘foreign investor’ figures are mostly expat Kiwis – people like Helen Clark & her four houses [PAID] http://www.nbr.co.nz/article/shearers-foreign-investor-figures-are-mostly-expat-nzers-rh-p-143493 …
But it gets worse – Labour’s policy is not only based on faulty figures, it also contravenes the Free Trade Agreement with China that was negotiated by the last Labour government.
Oh dear, faulty figures based on incomplete understanding and no idea about the FTA a Labour government negotiated – is anyone in Labour thinking?
Hat tip: Keeping Stock
P.S. – in case you think I’m guilty of Clark derangement syndrome.The post is to show Labour’s shortcomings – in government for not recognising and acting on the growing imbalance between supply and demand of houses and now for this ill-thought out policy – not to comment on her investment decisions about which I have no criticism.