Co-leader Metiria Turei said the Green Party wants to make sure house prices fall so young families could afford to buy a home but appears unaware of the impact of a house-price decline on young families who have already bought a home. When asked by presenter Duncan Garner in a debate on housing aired on TV3’s The Vote on Wednesday night whether she would like to see house prices fall, Turei said:
“Yes, actually we would like to make sure that they fall . . oh shocked looks on their faces . . oh dear, how terrible that young families could actually afford to buy a home.”When Garner followed up by saying: “You want house prices to fall. That means some families would have negative equity which would be an economic disaster for New Zealand”, Turei said “that’s right”, adding:
“that means that those holding onto the wealth now will have to be prepared to let some of it go”This is the latest in a series of Green Party policy gaffes:
1. Turei told Maori TV in April that Maori in regions where jobs are limited who are growing and selling cannabis to keep their whanau fed shouldn’t be punished for their entrepreneurship. See http://breakingviewsnz.blogspot.co.nz/2013/04/mike-butler-turei-backs-maori-dope-trade.html#more
2. The other Green Party co-leader, Russel Norman, made capital gains tax claims that would require a gain of $374,999 per property to raise the promised $4.5-billion a year. See http://breakingviewsnz.blogspot.co.nz/2012/05/mike-butler-russel-norman-on-cgt-lol.html#more
3. The Green Party joined with Labour in announcing a plan to reduce electricity prices through a creating a single (government) buyer scheme that was rubbished by the person they were relying upon as a source. See http://www.nzcpr.com/weekly388.htm
In her enthusiasm to lower house prices so that the first home buyers who are yet to make a purchase can afford to buy, Turei overlooks what would happen to those first home buyers who have bought their home to find declining values are putting them into negative equity, possibly wiping out all the money they saved for a deposit.
Turei either knows or does not know the impact of a sharp house-price fall on highly geared first-home buyers, which means she is either shamelessly chasing the votes of young wannabe home owners or financially illiterate.
Either way, she is unfit to govern.