Each party has a different way of approaching the housing market. Today we think about possible coalition combos and the potential impact. All very speculative but interesting to think through.
National and NZ First
Both are keen to help the first home buyer but have very different approaches. NZ first would like to have special land with low interest rates available to home buyers and National would increase the home grant for 1st home buyers. Also National talk about possibly freeing up more land through some changes in urban rules.
Initially it would seem the lower end of the market where first home buyers operate would get increased competition. In Auckland this would be for houses in the $600k mark and outside of Auckland it would be for houses in the $400k mark.
Outside of that it would seem that we should not see much pressure or change in the investor space or the existing home buyer space.
Labour Greens and NZ First
All three parties have some type of state intervention in providing new land and housing as their solution. A lot of these would be focused on affordable housing. Pressure would be felt in the building industry.
Existing houses aimed at first home buyers might feel a little less price pressure. This could place pressure on more expensive housing for home owners trading up as the building industry would be more focused on the other end.
Here are some selected policies from each of the parties
National
Double the grant for first home buyers buying under $600k in Auckland, who fit into the welcome home criteria. This would mean that a couple could potentially get up to $20k towards their first home if they tick the other boxes. Current welcome home criteria here
One Billion for infrastructure to help councils with things like roads and water.
Freeing up crown land for more affordable sites. (34,000 over the next ten years)
Changing RMA approach for Urban land.
NZ First
Reduce Migrants by a lot.
Low interest sections, staggered below market interest rates. Cost of build at normal interest rates
Labour
Bright Line test to extend to 5 years. Capital gains tax payable if selling a non family home within 5 years of buying.
Stop ability to transfer losses from investment properties to other income.
Ban foreign buyers
Reduce migrants a bit.
Massive government building program 100,000 house in ten years. 50,000 in Auckland.
Greens
Buy and build state houses, 3,000 per year for 3 years.
Capital Gains tax, exclude the family home
Shift standard tenancy agreement towards more secure and predicable tenure arangments
Ensure all new buildings conform to sustainable building principles
Hamish Patel – mortgage broker. Mobile: 021 625 693, hamish@monline.co.nz
