Luxon knows that 5% deposit schemes are a cynical way to put a floor under house prices and yet he pretends like he has first home buyers interests at heart… ugly politics if you ask me. Australia has just shown us the way to make houses more affordable, not that it wasn’t obvious to everyone beforehand. Remove tax breaks for landlords… JOB DONE!
Photo Credit: Pigeon Post Screenshot
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This is simplistic; all new builds involve high per square costs these days, probably about 2.5 times what they were before Covidiocy in 2020. Some houses will cost even more of they have high specifications. People want and should have good construction, not cheap and nasty. The best thing for first time buyers to go for if they want ‘affordable’ are existing houses that are more than a few decades old and have been poorly maintained. Fixing them up will add value. Taking the tax deductibility of expenses away will simply result in reducing the number of homes in the the rental market. In Sweden they found this out — people need to buy there, not rent.
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