Are homeless safe as houses?

There are fundamental flaws in the government’s tax changes on rentals with non interest deductibility.

When home loan interest rates increase, rents will increase, less rental stock will be available when owning rentals is unaffordable, which will increase the amount of homeless.

It will also increase the dependency on government for superannuation and accommodation grants as landlords exit the market, instead of being self sufficient in their retirement.

Oh and by the way has anyone read the MBIE Building Code revision?

Apparently building costs are not only set to rise with the shortage of materials and labour, the government is set to change the R values of houses to unpractical levels with their three proposals to increase those levels.

Some building materials or systems are not even available in NZ to meet those new levels.

Aluminium joinery for example may become redundant as it may not meet the new R level requirement.

So while the government is promoting new builds as rental investments it is making it more expensive to build.

What will the rents be then for the return on an an expensive new build investment?

Much higher than a currently fully renovated, second hand healthy home?

Remember the labour government for creating more homeless by creating an even more shortage of housing stock available with their policies.

It is commonly accepted that the Victorian expression ‘as safe as houses’ means ‘secure; with no risk of failure’.

However with these government changes it could be destined to fail. Tracey McLeod, Lake Tarawera