Lower GST on new builds needed
A slowdown in people wanting to build a new house has caused shockwaves as the “buyer gap between getting a new build or buying an existing home is widening”.
Industry leaders warn the housing crisis could deepen and property prices could spiral “out of control” again if new builds stall.
Time for the Government to reduce GST on new dwellings from 15 per cent down to 10 per cent. Think how much money is paid back to the Government for the completion of a new dwelling, including its furnishings, all inclusive of GST, paid for from a taxed net income. In addition, the workers being paid to build the dwellings are paying income tax too.
— Peter L
Go figure. Massive inflation, and suddenly houses are more expensive to build . . . driving up rents again.
Now what could the Government do to help? Oh yeah,
■ don’t close the factories in multiple lockdowns,
■ reduce your spending,
■ let workers come into the country. You know, the basic stuff governments do.
And perhaps, listen to everybody when they tell you not to shut the country down.
Did someone say recently, a building consent was not a house?
—Kimc
Exorbitant council costs and the associated fees in my opinion are contributing to the cost of a new build and subsequently the price of land. I recently explored the possibility of subdividing off a good-size back
section of around 420sq m at my home.
The total cost in council fees, compliance costs to meet a plethora of regulations and conditions, reserve contributions, utility connections and a myriad other costs essentially going to people sitting in offices to simply stamp a form to grant you permission for you to spend your own money was around $150,000; this figure did not include survey costs, it was money paid to authority granting statutory bodies. To make the project totally unviable and not create a building opportunity, the timefame was 14-18 months. Totally ridiculous.
— Bruce C
Perhaps expectations for home ownership are too high also. Maybe instead of a new build some might just have to put up the cash for a “dunga” and gradually improve.
Maybe instead of “having to have” new furniture, second-, third- or fourth-hand might have to do. Buying stuff on finance has to be a last resort, not an everyday occurrence. Minceon-toast meals, handmade lunches and DIY lifestyle might have to take over in these times where “I want” is given precedence over “I need”.
Have the young ones got what it takes? Or does the week in Fiji or the nights out each weekend take precedence . . . I think it does more often than not.
— John W
Anyone can see that this accident waiting to happen is going to happen.
When you have industry leaders believing that buyers must be
found for new builds at spiralling prices, you know something horrible has gone wrong. You also know the new-build market is in an ominous and very precarious state.
The fact that the Government would not give Fletcher’s an exemption to continue making Gib during lockdown will also have been a trigger to this terrible shambles.
I feel so sorry for all the small businesses and tradies who will be impacted by what happens next.