With the election over and NZ First/Winston Peters looking like the king maker, we thought we'd dig a bit deeper into their policies when it came to the housing market. So what would NZ First do when it comes to housing?
PLACES TO CALL HOME
Initiate the New Zealand Housing Plan to revamp the New Zealand housing market covering housing availability and affordability as well as rental homes supply and affordability.
Reduce pressure on housing by slashing 72,400 foreign migrants net, who entered New Zealand over the past year with most settling in Auckland.
Ensure that only New Zealand citizens and Permanent Residents can buy freehold land.
Recognise that there is a housing crisis by establishing a new state agency to acquire and develop land for residential development:
Provide first home buyers with affordable residential sections under long term low interest sale and purchase agreements of up to 25 years.
Purchasers would build their own homes using normal bank financing, with title to the section transferred to them and the amount owing for the section, secured by a second ranking statutory land charge.
Provide subsidies to insulate 53,000 houses ever year.
Review building standards to ensure better building quality including earthquake and landslip resistance.
Require compulsory and adequate insurance cover be acquired by all building owners.
Fully monitor and enforce the terms and conditions of existing approvals by the Overseas Investment Commission for the ownership of land by non-residents.
BETTER RENTAL STOCK
Assist local authorities to develop aged-care housing and public rental housing projects.
Provide accelerated deprecation for landlords to invest in energy efficient housing from insulation to HRV systems.
So - in a nutshell...make sure foreigners don't have as big of a stake in our housing market...and make more land available for first home buyers. If you're a New Zealand citizen or permanent resident, there's not much too much change coming if NZ First have their way.
Of course...with how unpredictable this election has been, there's nothing to say the Green's won't swoop in with National and make Winston irrelevant. As always...watch this space!
This election season property affordability has been a massive talking point. Naturally, most of the parties have come up with a plan for what they'll do to 'fix the housing crisis'. Below is a bit of a summary in a nutshell of what each party is proposing when it comes to housing and property.
In a nutshell, it's a steady as she goes approach. National stress that the work they've started doing should continue and will start to have effect. The approach seems to be based on the premise that housing supply and red tape is the issue.
Build 20,000 new houses for private sale in NZ.
Make it easier to build houses by tweaking the RMA.
Keep using Special Housing Area, lending to local Council's to build infrastructure and selling Crown land for new housing developments.
Labour seems to be sitting on a fence a bit between the issue being housing supply, versus speculator demand. Their solution combines building more houses and looking into taxation - but without giving firm specifics of what that tax might be.
Build 100,000 houses to sell to first home buyers.
Restrict residential home ownership by non-residents.
Tax capital gains on investment properties sold in the first five years.
Expand programs that support Maori home ownership.
Remove limits on Auckland urban boundaries and density.
Create a tax working group to look at a Capital Gains Tax (that wouldn't include the family home).
The Opportunities Party
Gareth Morgan and TOP seem to have the plan that differs most from other parties. They point out that demand from speculators and a tax loophole when it comes to property is the issue.
TOP want to tax income from all assets (including the family home) at a rate of about 1.5%.
The extra earned from that Wealth Tax will then be redistributed as income tax (about 30%) - making 80% of NZ better off.
For over 65's, the Wealth Tax could be paid off, or accumulated into a loan that became payable upon the sale of the house or death (effectively becoming and estate tax).
Morgan points out that these measures are what the last 2 tax working groups have recommended.
NZ First also falls in the housing supply being the issue camp. More houses and easier building is their focus. They don't really identify how they are going to pay for the plan.
Build 140,000 houses for first home buyers.
Restrict land ownership to non-residents.
Change the building process to allow faster approvals for new housing.
Encourage local authorities to provide more affordable housing and land.
The Greens have a pretty similar approach to Labour with it geared up a little bit more. They want a Capital Gains Tax, but again, it doesn't include the family home.
Build 10,000 homes to sell to low income earners through a rent-to-own scheme.
Introduce a Capital Gains Tax on all assets except family homes.
Restrict residential property ownership by non-residents.
Close negative gearing and combined collateral exemption loopholes.
Allow student loan borrowers to defer student loan repayments to save for a home deposit.
The Maori Party also focus on the supply issue, with their Maori focussed twist to it. They want to build more homes, but also give Maori and Pasifika a bigger voice and more jobs in the construction sector.
Build 90,000 more homes for social housing and private sale.
Establish a Minister for Maori and Pasifika Housing.
Increase financial support for low-income first home buyers.
Subsidise private developers to include affordable houses in new developments.
Add more Maori and Pasifika in the construction sector.
As you'd expect, ACT takes a less invasive approach - focusing on the tools to let individuals and businesses self correct the market. By cutting down on rules, they also focus on the supply side of the equation.
Replace the Resource Management Act with less rules.
Abolish the rural-urban boundary.
Share GST from housing construction with local councils.
Replace building safety and quality standards with mandatory private insurance.
When you run through all those approaches to housing, there is a definite trend from the 6 established parties - that supply is the issue and by building more houses, the market will correct itself. While the more left leaning parties like Labour and the Greens do look at the demand side of the equation, TOP is the real outlier with a dramatic tax change proposed.
Hopefully this gives you a bit more insight and understanding into what all the parties want to do when it comes to housing this election!