NZ First wanting Muldoon rent freeze

November 22nd, 2012 at 2:00 pm by David Farrar

NZ First have said:

New Zealand First says more evidence of rent gouging has emerged with a family with nine young children landed with a rent increase of $100 a week to take their weekly rental from $460 to $560.

Nine young children?? I won’t even try and work out how much WFF they get!

Anyway we don’t know how many bedrooms their current house is but there are 16 properties currently on Trade Me that are at least five bedrooms for under $500 a week. And if you have three kids a room (they are young kids) then there are 72 four bedroom or higher properties for under $500 a week.

Christchurch Earthquake Issues spokesperson Denis O’Rourke says this vindicates repeated calls from New Zealand First for a short term in the city.

No it doesn’t. A rent freeze did not work for Muldoon, and the fact some landlords increase their rents doesn’t mean you need price controls.

The economic policy of a Labour/Green/NZ First Government looks more and more to be wedded to the 1970s.

Rents have increased in Christchurch, but in some parts they have dropped according to the official stats:

A number of suburbs across greater Christchurch, particularly on the outside of the city centre, continue to show increases in average weekly rents of 20% or more. Russley, Hawthornden, Yaldhurst, West Melton, Halswell West, Halswell South and Kennedys Bush have all shown large increases for the three months ending October 2012 compared to the same period the previous year.

Meanwhile some suburbs in city fringe areas continue to show decreases in average weekly rents of 10% or greater. Ilam, Riccarton and Westburn have all shown large rent decreases.

And if you bring in a rent freeze, you will discourage new houses being built (which is the sustainble solution).

In Canterbury consents were issued for 396 new dwellings in September 2012, up 80% from September 2011. This is the highest number of consents issued in Canterbury since September 2007.

Yes it is tough if your rent goes up. But the solution proposed by NZ First will make things worse.

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22 Responses to “NZ First wanting Muldoon rent freeze”

  1. Raphael (88 comments) says:

    Hmmm, my rent went up $100 per week at the end of last year. (short version of a long story landlord needed to put the house on the market we had a baby due and suggested a rent increase for a year in exhange for the house not being on the market.)

    The best thing it did was meant we adjusted our expenses so that really we’re going to be better off buying a house in Feb (if a bank will be nice enough to let us have a home loan)

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  2. Chi Hsu (101 comments) says:

    Some people just want to watch the world burn…

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  3. lastmanstanding (1,297 comments) says:

    Yeah And lets have a price freeze and a wage freeze. And an interest rate freeze. And why not 50% cash deposit to buy a new car and 25% cash deposit to buy a second hand car.

    And lets limit banks and finance companies as to how much they can lend each month to finance new and used car purchases. Have I forgotten anything?

    For the young ones (like DPF) these were all laws in the early 1980s and until July 1984 when the Nats lost the election.

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  4. berend (1,709 comments) says:

    The only freeze we will never get is a freeze on taxes and government expenditure.

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  5. dc (144 comments) says:

    A rent freeze sure is a stupid idea, but minimizing the rent increases in Christchurch isn’t going to help either. The average rent for 4-bedroom properties is up 20% in one year (DBH report linked above), so the “price-gouging” 18% increase above is less than the average.

    And as has been pointed out to DPF every time this comes up, citing the number of properties listed on Trademe is meaningless without considering the number of people seeking properties, which is extremely high.

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  6. nasska (11,575 comments) says:

    Just as soon as Luigi & his merry band figure out how to get the DeLorean up to 88mph all will be well for the mass breeders of Christchurch.

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  7. Ross Miller (1,704 comments) says:

    Just goes to show how well Luigi supped from the Muldoon cup. King Canute is alive and kicking in the Winston First Party. Labour et al are welcome to him.

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  8. burt (8,275 comments) says:

    DPF

    It’s time to remind the socialists that Muldoon was a socialist… Sure a socialist under a blue flag – but still a socialist.

    The lefties hate him because he was National – but constantly talk up their policies which are the same as the ones which failed under Muldoon….

    Educate them DPF !

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  9. emmess (1,428 comments) says:

    Russley, Hawthornden, Yaldhurst, West Melton, Halswell West, Halswell South and Kennedys Bush

    All in the west
    Once people are satisfied the quakes have stopped, the rents over the city will even out again

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  10. hj (7,033 comments) says:

    The supply side of housing is often mooted but rarely the demand side
    http://www.stuff.co.nz/business/money/4622459/Government-policies-blamed-for-house-prices

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  11. B A W (100 comments) says:

    Price controls are a last resort and should only be done when all else has failed and then for the minimum amount of time. This is not one of these times.

    Winston is just trying to be popular.

    Lets hope in the Next Green/Labour/Mana/WinstonFirst Government that he gets sidelined to a post where he can do no harm. Helen sent him on the Diplomatic cocktail circuit – good for the ego, perhaps the next govt should do the same.

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  12. Elaycee (4,393 comments) says:

    I wouldn’t laugh about it… I’m waiting for the melons to suggest a return to Car Less Days! :(

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  13. hj (7,033 comments) says:

    Nationals policy is population increase (sugar hit followed by sugar hit followed by sugar hit…). And when we get to the right size (which we never will as even in the UK the business community and left-wing are calling for more migration) we will be a mighty economic powerhouse… distance and agriculture being our strategic advantage.

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  14. hj (7,033 comments) says:

    Funny how none of you here agree with the Savings Working Group or IMF… because of self interest.

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  15. hj (7,033 comments) says:

    Lest we forget:

    “Tonight, a pumped de Roos tells his audience that he wants people to invest in property and write to him 12 months down the track and tell him they’ve “made one million or three million, or you’ve got 16 properties, or we’re taking six months off because our cash flow now exceeds our outflow!” He says, “I don’t know any other activity where the rewards are so huge. If you want to invest a million dollars in the sharemarket, you need a million dollars. If you want to invest a million in real estate, you only need $100,000.”

    You can buy one property, get it revalued, use the equity to buy another property and then buy another and another. “And you do it all with OPM. Other people’s money. OPM. It’s like being high on drugs!” What’s more, the wonder of depreciation claims on the building and contents means “the government subsidises your investment! It’s delightful!””
    http://www.listener.co.nz/uncategorized/house-of-the-rising-sum/

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  16. coolas (115 comments) says:

    In Christchurch, “rental property inquiries were up 42 per cent … but listings were down 40 per cent.

    Nationally demand was up 9 per cent and supply was down 7 per cent.

    National average rent increased by 4 per cent.

    Christchurch’s average rent increased by 15 per cent.”

    http://www.stuff.co.nz/the-press/business/6721107/City-rental-demand-soars-supply-plummets

    The above shows what’s happening. The earthquakes knocked out supply, and people lost their homes, either permanently or temporarily, increasing demand.

    In the marketplace prices increase with demand, so of course the owners of short-supply properties can increase their rents.

    Are those landlords profiting from those who’ve lost their homes?

    Yes, of course, but what the heck, the market has no feelings, so why should the rack-renting landlords.

    Typical Winstone Peters interfering in the market because he feels sorry for folks in Christchurch being exploited.

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  17. scrubone (3,099 comments) says:

    Typical Winstone Peters interfering in the market because he feels sorry for folks in Christchurch being exploited.

    The point is that a rent freze won’t help. In fact, landlords aren’t advertising rates high enough at the moment, and people are showing to places only to find the actual rent they’d pay would be far higher, because people are simply bidding the price up simply to secure the place.

    Sounds nasty, but the fact is you can’t get a place there for any price right now – you have to know someone.

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  18. scrubone (3,099 comments) says:

    The big danger is that people looking to join the rebuild take a quick glance at trademe and think they can afford it – or can even get a place. Then they move and find that it’s well nigh impossible.

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  19. burt (8,275 comments) says:

    Has Winston paid back the $158,000 he stole in 2005 ??????

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  20. wat dabney (3,774 comments) says:

    Funny how none of you here agree with the Savings Working Group or IMF… because of self interest.

    Funny how you lie and misrepresent the reports.

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  21. pq (728 comments) says:

    I just returned home after letting out house to earthquake refugees.
    There is about four weeks work to bring the home back to the standard it was when I left.
    Cost to me in time is $3000
    Not much stolen, its just immense wear and tear.
    None of these people had to pay their own rent, it was insurance money.
    I have found it is better to let home out to people with dogs and cats rather than children.
    The dog and the cat do not think, like how can we take advantage of this gouging landlord that we do not have to pay.
    They crash your internet system, shag around with the laptop, introduce extra people to the house, collect their own rent,
    even though they pay nothing themselves, cars on the front lawn, help self to the tools and equipment in garage and keep it,
    let the plants die, leave junk in the garage, do not understand how vacuum cleaner works, ring for service every so often, on the slightest whim.
    Yes we love tenants not, and I want to vote NZ First, but I am not so sure anymore.
    I asked them NZFirst if they support CGT, no answer.

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  22. duggledog (1,559 comments) says:

    Burt: ‘DPF It’s time to remind the socialists that Muldoon was a socialist… Sure a socialist under a blue flag – but still a socialist.’

    Nice one brother

    At the same time DPF, please remind those same people that Roger Douglas was Finance Minister under Labour. Hasn’t changed his mind on much since. My dear old dad used to tell me not to be tribal with my vote.

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