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00timebandit00

Over half of private rentals in NZ need gov't help to pay rent

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While the gov't subsidises over $1.2 billion (yesh, we only have just over four million people and not all of us are beneficaries!) they

are also paying for Housing New Zealand (HNZ) which allows only 25% of a tennent's income to be paid in rent.

 

From HNZ website:

We own or manage more than 66,000 properties nationwide, including about 1,500 homes for community groups providing residential services.

They are the largest provider of residental property and they are state owned and operated.

 

In addition to this there is of course council housing in main centres which is subsidised as well.

 

NEITHER HNZ FIGURES OR LOCAL COUNCIL FIGURES ARE INCLUDED IN THE $1.2 BILLION If they included this the figure would be much, much higher.

 

What the article doesn't make clear is that PEOPLE WHO OWN THEIR OWN HOME can also qualify for the accommodation supplement. Yes, really. If home owners are smart they will have increased their mortgage payments to qualify for the maximum A.S. and suck the money from the gov't that way too - which if you purchased your home back in 2000/2002 would be very easy to do. In fact if you don't have a mortgage and earn middle money or lower it might just be in your best interests (not NZ's though) to get one. $20 K should do nicely.

 

Side note: Just a day or so ago a headline screamed Foreign farm sales average 82ha a day . FYI we are about the same land mass as Japan.

Once we owned our own country and the farms, perhaps soon we may just rent it. I'm really angry about the continuing sale of large amounts of land which our young farmers are finding increasingly tough to buy. Anyways....back to the residential rental market.

 

Article: http://www.stuff.co.nz/national/4000703/Mo...elp-to-pay-rent

 

More Kiwis need help to pay rent

By TRACY WATKINS - The Dominion Post

Last updated 05:00 07/08/2010

 

Sione Bahulu

KENT BLECHYNDEN/The Dominion Post

MY NEIGHBOURHOOD: Sione Bahulu, 63, has lived in his state house in Strathmore for about 10 years, and says the close-knit community is home.

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More than half of all households in private rental accommodation need state subsidies to pay the rent, says a new report that urges the Government to vest some of its "cold, mouldy and old" Housing New Zealand stock in not-for-profit groups.

 

It also reveals the Government is moving to abandon the decades old acceptance that a state house is a "house for life".

 

In its report on New Zealand's social housing system, the Housing Shareholders Advisory Group says Housing New Zealand is developing strategies to provide homes only "for as long as [a] need exists" – a significant shift from the practice of leaving tenants in the same house for years, giving them security of tenure regardless of whether their circumstances change.

 

But the report says the shift in policy will rely on "incentives" to get tenants out of their home and Housing Minister Phil Heatley has previously given assurances that people won't be forced out if they don't want to go.

 

The housing shareholders advisory group was set up to advise Government on the best use of its $15 billion investment in state housing. Its membership includes property developers, investment bankers, the Salvation Army and Auckland City Mission.

 

Its report found that the availability of "healthy, affordable housing" is dwindling in New Zealand and says increasing numbers of people are renting because they cannot afford to buy a house.

 

It also reveals the dramatic impact of the recession on the number of Kiwis needing help to pay the rent or mortgage, with the cost of the accommodation supplement – a government housing subsidy – leaping 18 per cent to $1.2 billion in 2009. That was the result of a 20 per cent jump in the number of people seeking the payment in the course of just one year.

 

Too few homes were being built to meet demand and the cost of buying was accelerating faster than incomes were rising, the shareholders group said.

 

"New Zealand is unusual among its Western peers in that the proportion of those owning their own home has declined over the last two decades. In 1986, 73.7 per cent of New Zealand residents owned their own home. In 2006 the figure was 66.9 per cent."

 

The home ownership rate was tipped to fall even further to 61.8 per cent by 2016.

 

There had been an estimated 266 per cent increase since 1996 in the number of households in which there was at least one member in paid employment. However, they could not afford to buy a home on a deposit of 10 per cent and a debt servicing ratio of no more than 30 per cent of their income.

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The affordability squeeze was also causing overcrowding – in 2006, an estimated 389,600 people were believed be living in overcrowded homes.

 

Finance Minister Bill English and Housing Minister Phil Heatley welcomed the group's call to diversify the funding of social housing to third parties.

 

Mr English said the group had widened its brief by looking at housing affordability generally, which meant its recommendations needed further consideration.

 

'I LOOK AFTER MY HOUSE REALLY WELL'

 

Moves to put a stop to long-term tenancies in state houses have been labelled "stupid" by those who call the houses home.

 

In a report issued yesterday, a housing task force set up by Housing Minister Phil Heatley found the "house for life" expectation meant 22,000, or 32 per cent of Housing New Zealand tenants, had been in the same state houses for at least 10 years.

 

But it has also placed restrictions on Housing New Zealand Corporation's ability to provide housing to the neediest tenants, by making it difficult to resolve the problem of tenants remaining in properties that become too big for them.

 

Sione Bahulu, 63, has lived in state houses in Strathmore for about 20 years, and his present house for about 10 years.

 

He watched his two sons grow up in the neighbourhood, which was home, he said.

 

The community was close-knit, with a clinic and church nearby, and he would not want to leave.

 

"I look after my house really well."

 

The Nysse family has been living in their Fife Lane house – the first state house built – for about 18 years.

 

Student Theresa Nysse, 22, grew up in the Miramar house with her parents and two sisters.

 

"It's kind of like a family house. Everyone comes here for gatherings and that."

 

The Government's report was "stupid", she said. "It would be pretty sad to kick people out when they've been here for a long time."

 

Finding affordable accommodation could be a challenge for many people, she said.

 

She was not proud to live in a state house, and her family would buy the house if they were able to.

 

"I'd rather live in a private home."

 

"Pretty sad to kick people out when they've been here for a long time" - OMG that would be horrific. Then they would have to

struggle in the private housing market like the rest of us.

 

For the moment HNZ tennents are what I call the rich-poor. Low enough income to qualify, but given more benefits to to the level

of their incomes than anyone else of the same income but without the nanny state housing for life.

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What the article doesn't make clear is that PEOPLE WHO OWN THEIR OWN HOME can also qualify for the accommodation supplement. Yes, really. If home owners are smart they will have increased their mortgage payments to qualify for the maximum A.S. and suck the money from the gov't that way too - which if you purchased your home back in 2000/2002 would be very easy to do. In fact if you don't have a mortgage and earn middle money or lower it might just be in your best interests (not NZ's though) to get one. $20 K should do nicely.

If home-owners are smart......

 

If home-owners lack decency....are immoral...

 

Notice how the vocabulary sounds a bit "dated"....

 

 

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