Friday, May 16, 2008

The pitfalls of buying on a "one way street"

Listened to Larry Williams interview Maryan Street on the way home tonight.

Street was buzzing about her latest effort to spend government money.

Funny, but I always thought it was tax payers money she gets to spend.
But she must be a property expert as she said she has been looking at real estate adverts in the local papers and is thinks "now is a good time to buy".

Will the scheme work?

Well it will certainly get some people into the market but One Way was bit light on future details.
There are a few potholes.

When the property is eventually sold, who will benefit from the improvements made, but not contibuted to by the government. Kiwi's love the "Do up" and will be painting, gardening etc adding value.

Who will pay for all the bureaucrats to go around inspecting, reporting, recording all the work so the new owners won't get screwed some day in the future when the gummint claims capital gains based on the improvements they haven't contributed to.

Maybe unemployed Labour MP's could be given contracts next year to do the governments share.

Not to mention the subprime people who will give up on the payments and force mortgagee sales. The taxpayer will take the bath because the banks won't.

Will this scheme artifically hold up prices which would otherwise be falling?

So many questions, so few answers.

More policy on the hoof .
Must be election year.


expat said...

Regional house cap prices were Queenstown $385,000, Auckland $305,000, Wellington $260,000, Christchurch $255,000 and Nelson $240,000.

Ms Street was confident houses in those ranges were available despite median prices being much higher.

Street is retarded.

Adolf Fiinkensein said...

Look for clever operators tasking the government handout, waiting one year, selling on a down market to a friendly buyer and shortly thereafter buying back in. Bingo. There goes our equity, straight into the buyer's pocket. Dumb Dumb Dumb

Adolf Fiinkensein said...

expat, she's not retarded. Median is not average. There are plenty of modest homes in Auckland available right now at $305k or less.

Clunking Fist said...

"The scheme has been tightly targeted specifically to assist a group of New Zealanders who have..." traditionally voted Liarbore and are in danger of abandoning us, said Merry and Road.
We tried to buy their loyalty with kiwisaver, but our policies have made them so poor they couldn’t afford to give up 4% of their income to join the scheme.
Then we tried 20 free hours of pre-school care, but we didn’t notice that you actually had to have quite good income to afford childcare these days.
But this one is going to work. How do I know? Cos Gordon (Snot Gobbler) Brown has just launched the announcement of a similar proposed scheme. And we all know we’ll succeed if we just copy the British Communist Party. Of course, our scheme will be even more successful, because we’ll not only ANNOUNCE the scheme, or even SET UP the Quango to run it, but that quango we will actually SPEND good taxpayer money implementing the scheme. (That’s one thing we have over the Brits: we’re not just talk.)
Of course, the fruits of the scheme, and its unintended consequences, will be felt well after we’ve left office, but we’re hoping to get some mileage from the ANNOUNCEMENT of the scheme, at least.

Lou Taylor said...

Well said clunking fist

Anonymous said...

Of course, the fruits of the scheme, and its unintended consequences, will be felt well after we’ve left office, but we’re hoping to get some mileage from the ANNOUNCEMENT of the scheme, at least.

Kiwi Key has just announced that anyone gullible or stupid enough to accept this corrupt bribe will have the house confiscated and sold from under them at market rates, and their equity (along with the government's contribution) will be paid back into the "surplus" where it belongs - to be given back to honest hardworking taxpayers who paid for their own houses out of their own money

On current polling: no-one will be stupid enough to take this bribe - and if they do, more fool them when they're out on the street!