Press Release – Hugh Pavletich
The reality is that we need to be starting on the path of providing $200,000 new starter homes ($50,000 for the serviced lot / section – $150,000 for the house construction) ,or a little higher than this initially, on the fringes of our major urban areas …
NEW ZEALAND MIGRATION LOSS:
AFFORDABLE HOUSING REQUIRED TO STEM TIDE
Performance Urban Planning
23 November 2011
NZ PM stands by brain drain promise – Sydney Morning Herald
How much longer do we have to wait, before the Government ALLOWS affordable housing to be built in New Zealand?
The reality is that we need to be starting on the path of providing $200,000 new starter homes ($50,000 for the serviced lot / section – $150,000 for the house construction) ,or a little higher than this initially, on the fringes of our major urban areas – particularly the attractor markets, such as Auckland, Tauranga, Hamilton, Nelson and Christchurch.
First – this will require that the appropriate mechanisms are put in place to allow fringe urban land prices to be at or near their true rural value of around $10,000 to $40,000 per hectare – not the artificially engineered inflated prices of $500,000, $1,000,000 per hectare and often a lot more.
Second – finance infrastructure appropriately, so that those who own it, are responsible for its equity and debt financing, charging rates / fees for its use – along the lines of the United State Municipal Utility District bond financing model. All infrastructure (other than roading and footpaths) should be financed this way, for what should be obvious reasons of economic efficiency and intergenerational equity. It is grossly inefficient and unjust to load these costs, with subdivision and construction margins, in to new home buyers.
Third – get some sorely needed and elementary performance disciplines inculcated in to the Local Government sector – so that they actually start managing them, instead of the current bumbling practice of administering them “after a fashion”, where the Indians run these shows to suit themselves.
None of this is “rocket science”. The problems and solutions are well known.
The only ingredient lacking is political leadership. This unnecessary outwards migration is entirely of our own making.
Don’t young New Zealanders deserve a future in their own country?