OPINION: There are several ways to resolve the housing crisis and more than the current steps taken needs to done. I would look to solve it in a multitude of ways.
The obvious one is to stop foreign ownership. It should be made a requirement that to own property, you must have New Zealand residency status or citizenship.
The second step is to stop house prices increasing, but with a top-down approach.
Banks should only be allowed to lend 3.5 times your income.
If nobody can get stupidly big mortgages, then sellers will be forced to lower the unrealistic house prices. This will also prevent investors looking to make capital gains without the need for a capital gains tax. It would also go some way to lower personal debt levels.
Do not sell off state homes. No job equals no property ownership. If you want a house, earn it like the rest of the population. Those that need temporary accommodation can then still get it.
Build more homes. Easier said than done with the Christchurch rebuild, I know, but it's an obvious solution. New Zealand has more than enough land to do this. The Government could offer subsidies to those choosing to build rather than just buy as an encouragement.
Restrict first time homebuyers to a minimum 20 per cent deposit when buying in Auckland. The rest of the country, a minimum of 5 per cent.
Auckland is what is causing the biggest problem so people need to be encouraged to go elsewhere.
Following on, offer subsidies to businesses to move out of Auckland to other towns/cities. People won't move from Auckland because of the lack of jobs elsewhere. By encouraging businesses to move elsewhere, people will follow and relieve some of the stress on the Auckland market.
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- The Press