I think Dingbatt is asking for evidence. Compared to some people, his request wasn't that bad.

freitasm:

 

I think Dingbatt is asking for evidence. Compared to some people, his request wasn't that bad.

 

Also raises a general issue with the evaluation of the impact of policy - there usually isn't a control country, in which the policy wasn't changed. 

Economists have ways and means around this.  As a person with a science background those approaches make me cringe, but they do get published and some info is better than none.

I was saddened to see the occupations of the first Kiwibuild recipients to receive a 4 bedroom.

One of the couple is a graduate doctor and the partner is a marketer.

The more I learn of this "kiwibuild" scheme the more I am appalled by it. Whilst the above couple may well be currently earning close to the $180k cap they will soon be well over it and will sell their property in 3 years and make a huge tax free profit.

Bluntj:

 

I was saddened to see the occupations of the first Kiwibuild recipients to receive a 4 bedroom.

 

One of the couple is a graduate doctor and the partner is a marketer.

 

The more I learn of this "kiwibuild" scheme the more I am appalled by it. Whilst the above couple may well be currently earning close to the $180k cap they will soon be well over it and will sell their property in 3 years and make a huge tax free profit.

 

Unsurprising.  Predicted by many people

Realistically at the price point of those KB homes, people close to the incomes threshold are most likely to be able to afford them.

1. Someone decides to build a bridge.

2. Someone else comes along and kicks out the first strut as soon as it is completed.

3. The bridge is pronounced a failure.

GV27: The income cap is a puzzler. I'm not sure where I stand on it. There are other ballots with lower income caps, but you still need to be able to service the mortgages to get approval.

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

This whole scheme is not what was sold to the voters pre election.

Bluntj:

GV27: The income cap is a puzzler. I'm not sure where I stand on it. There are other ballots with lower income caps, but you still need to be able to service the mortgages to get approval.

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

This whole scheme is not what was sold to the voters pre election.

Bluntj:

 

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

 

As a bit of a property pessimist at the moment, I'd say that's an okay deal if the alternative also meant that if the property market turns turtle, then the taxpayer would have to bail the buyers out.

I suspect that they got themselves into the crazy situation as it seems insane that it costs $650k to build a basic house in NZ.  Perhaps they thought they could simply fix a thing that seems to have defied everybody else.

Bluntj:

 

GV27: The income cap is a puzzler. I'm not sure where I stand on it. There are other ballots with lower income caps, but you still need to be able to service the mortgages to get approval.

 

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

 

This whole scheme is not what was sold to the voters pre election.

 

If the home owner sells in three years they should like all other homeowners be able to retain the money recieved after repayment of the mortgage and selling costs. If they are not then they will probably not be able to purchase another home which would defeat the purpose. Use as an example and couple purchases a home and two or three years later the employer requires them to transfer if they have to pay the "profit" to the government they would be in a worse position and the in their case they are again part of the housing problem. 

The right-wing lobby can say what it likes about the government, but the polls seem to be saying something else.

Bluntj:

 

GV27: The income cap is a puzzler. I'm not sure where I stand on it. There are other ballots with lower income caps, but you still need to be able to service the mortgages to get approval.

 

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

 

This whole scheme is not what was sold to the voters pre election.

 

it's OK. Phil Twyford has clarified that KB isn't for people on low incomes.  He is developing a shared-equity scheme for low-income home buyers. 

https://www.stuff.co.nz/business/108187032/kiwibuild-not-for-lowincome-families-says-housing-minister

MikeAqua:

 

Bluntj:

 

GV27: The income cap is a puzzler. I'm not sure where I stand on it. There are other ballots with lower income caps, but you still need to be able to service the mortgages to get approval.

 

I believe being able to sell it after 3 years and take all the profit tax free is what gets me.

 

This whole scheme is not what was sold to the voters pre election.

 

 

it's OK. Phil Twyford has clarified that KB isn't for people on low incomes.  He is developing a shared-equity scheme for low-income home buyers. 

 

https://www.stuff.co.nz/business/108187032/kiwibuild-not-for-lowincome-families-says-housing-minister

 

I don't think it's unreasonable to say that Kiwibuild has (already) failed in it's stated objective.   (Irrespective of how close Twyford get's to his 'aspirational' target of delivering 100,000 homes.)

The policy was:

KiwiBuild will deliver 100,000 affordable houses over ten years for first home buyers.

The relevant definition of "affordable" was:

Outside of Auckland prices are likely to range from $300,000-$500,000

The first Kiwibuild home outside of Auckland just sold for $649,000.

That's 30% more expensive than the upper limit.

And I don't think that anyone is anticipating construction/production costs to reduce in the foreseeable future?

It's now unclear to me what the point of KB is. 

It isn't going to alleviate housing poverty. 

It isn't going to increase supply enough to reduce prices.

It now looks a small number of cheap houses for 'middle-class' people.

Doesn't even look like vote winner.

The price band has been smashed out of the park.

Can someone explain what the point of this now is?

6FIEND:

 

Outside of Auckland prices are likely to range from $300,000-$500,000

 

 

 

The first Kiwibuild home outside of Auckland just sold for $649,000.

 

That's 30% more expensive than the upper limit.

 

 

 

And I don't think that anyone is anticipating construction/production costs to reduce in the foreseeable future?

 

Did it? Where was it? I've done a quick Google search but most results for Kiwibuild atm are about this couple.

Unless that's what you're referring to? Papakura is in Auckland..