AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- New grant announced by the NZ government to tackle housing woes.
- First-time homeowners reluctant to invest.
- Action required to help rehabilitate people better.
It has been found out in a recent update that the government would put in a sum of about NZ$4M in order to help the current housing situation in the country. With the help of this new grant, the government hopes to build thousands of new properties.
Nicola Willis, the National Housing spokesperson, is of the view that the emergency housing options would be able to help people bounce back and get their own stable homes in the future. Ms. Ardern, the Prime Minister, said today that the housing crisis in New Zealand was an ongoing one, and the government had pledged to help people find a way out in the near future. While surveys indicated that people who have been investing in new properties lately are the ones who already own more than 5 properties, mainly investors, whereas the new scheme seeks to benefit first-time homeowners.
Image source: Copyright © 2021 Kalkine Media Pty Ltd
With business continuing to be weak in the third consecutive month in terms of first-time home buyers, mortgage advisors are concerned whether this trend would continue for a longer duration in the future.
The previous year has definitely factored in as a major reason for the fluctuation in the trend. The uncertainty brought about by COVID-19 has been a major reason for people being reluctant in investing in property.
Also read: Is the FOMO propelling the rising house prices in NZ? | NZ NEWS 10 FEB
The trend in the last few years has been that people flip houses and simply buy them so that they can put them out on rent or sale, in hopes of generating profit out of it. However, the new change in rules has made that path a little difficult to tread for investors.
Also read: What is New Zealand government’s plan to counter housing crisis?
Meanwhile, temporary accommodation providers such as motel owners are being criticised for making easy money rather than helping people to get back on their feet. Marama Davidson, the associate housing minister, is of the view that some emergency housing conditions are nothing short of inhumane.
Also read: Westpac cuts mortgage rate amid housing boom
She further added that the government had allowed the motel owners to make a way of earning without ensuring that people living there were safe and secure. She further said that there were families being placed in rooms next to drug dealers as well as other miscreants. She added that a way to secure the interests of these people would be to create better permanent and temporary housing solutions.
Also read: Will Australia go the NZ way of checking house prices?
