The Green Party’s proposals to get low-income earners into housing have been panned by the New Zealand Property Investors Federation.
Its Home for Life package would see 100,000 homes built in conjunction with Labour’s KiwiBuild policy. Each would cost $300,000 and be built by Government. Residents would be able to use the sovereign interest rate of 3.5%. They would then make a basic weekly payment to cover the cost of the investment and make additional payments to purchase the equity in the home until they owned it outright.
NZPIF president Andrew King said it was a crazy idea.
A handful of extremely lucky people would benefit at the expense of all the other taxpayers, he said.
“They’re asking for $200 a week rent on a brand new property. The cost of administration is $2000 a year and rates are another $2000. So with $10,000 from the tenant 40% of that is going on administration and rates. How this isn’t going to cost the taxpayer I can’t work out at all.”
He said he supported the Green Party’s moves to get insulation in all rental properties but its proposal of a warrant of fitness, to be checked every year, was unworkable.
“It’s insulting to say the tenant can’t check whether there’s hot and cold water.”
He said the cost of such a scheme would likely fall on tenants.