Govt housing plan misses mark

The NZ Herald just did an article on housing http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10844195

I did one last week in Australia- it's the same problem and requires the same solution.

Affordable Housing vs Red Tape That Politicians Control

It’s not all greed and self-interest with people wanting to own their own home. Shelter is a basic need. People buy homes for security and peace of mind. And with rents going through the roof, millions of Australian's are not happy the politicians are failing to do something. 

What can be done?

The red tape surrounding land development is something our politicians can immediately unlock. 

I did a paper a few years ago on the subject. The proposal basically demonstrated 

1. Government could rezone selected land all around Australia for affordable housing

2. Landscape these new areas ready for housing

3. Invite housing companies to tender for construction contracts

4. Provide low cost funding for new home owners on say 3% interest- which is above what Government can get funding for. 

And if they did this, which we should demand they do, the economy would have billions of dollars in localised economic stimulus. Not only would this make the politicians look good but millions of tenant shackled people would be free of the endless cycle of rising rent. It would be a win/win for all involved.

The proposal would see caveats on titles of these new developments to protect the existing property values. 

The net result is new home buyers could get land at $60,000 and a house at say $140,000. 

So for $200,000 people would get a completed landscaped home at an affordable price. 

Manufacturers of building products affected, in varying degrees by the current downturn in home construction would receive a welcome ongoing boost. As for restaurants, cafes, child care centres, transport and just about all parts of our economic society theyy would gain a boost from this economic stimulus.

Recent news of gloom in mining, retail, and construction has motivated me once again rethink tabling that paper and I am keen to hear from anyone keen on helping lobby the politicians. 

Let’s hope those in power can rise above the institutionalised bureaucratic narrow band of short-sighted thinking and make this proposal a reality. The country needs it and so do our kids and families who need a home they can call their own. 

http://lawisanass-wingate.blogspot.com.au/2012/10/affordable-housing-vs-red-tape-that.html