Saturday, September 14, 2013

Mike Butler: Green plan to cut home values

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

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

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

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.


Ray S said...
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Some very old word spring to mind, "Forgive them father for they know not what they do"

Brian said...
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What this Lady is suggesting is, of course, nothing less than Communism under the Maori Banner.

For Maori it is a case of "What's yours is mine, and what's mine is mine"!

With the National Party bogged down in the mire of Maori appeasement in order to retain power. One might wonder how their spin doctors view the recent poll? and the drop in support for the Maori Party. Plus the threat of a Green/Labor election win? However if the present Government and Local Government policy is continue upon its present pathway whereby Maori bypass the need be elected; but are appointed under this so called co-governance.
The next local/general elections might be very democratically destructive as well as being the last under
our present electoral system!

Dale Smith said...
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Of course this is one way to make housing cheaper, irrespective of the other outcome. We have done this as a conscious act in the past ie the car industry. Or we could hope an external event eg another bigger GFC would achieve the same result, but without the internal blame.

Prices do not have to be cut, but just relatively change to equal a medium multiple ratio income to house of x 3.

One way of achieving this is to keep houses prices from rising until incomes catch up.

jh said...
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Isn't it normal to have market corrections?
The Savings Working Group put the blame for high house prices fairly and squarely on successive governments. Has anything changed?

Anonymous said...
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The scary thing is 16% (according to the latest polling) support this communist / Green party.

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