New Zealand has the same issues as most other first world countries like Australia, Canada, USA and Great Britain. Housing affordability. But anyone who owns their own home will not grumble at the return on investment that their own home brings them. The housing market finds its own price level and no government should interfere with this.
Not Labour and Jacinda though. They say we should have low cost housing so people can buy their first home. Lets look at how this could happen.
The Labour government will buy a block of land and commission a housing group to build a lot of low quality homes with low quality products. People will be means tested to buy one of these homes. Once they move in they will not be able to sell their home for 5 years. After this time they will sell it and make huge capital gains. The we are back to square one. Why, because that house and land will have a market value and no government can change those market values without affecting the market values of all New Zealanders homes.
