More civil servants Twyford can abuse, but these ones are from his own department

Phil Twyford
Credit: Pixy

Phil Twyford isn’t having any luck with civil servants and their advice. He’s attacked treasury, calling them kids. Then he attacked MBIE officials and said they were wrong over his much-vaunted KiwiBuild plans.

Now he has his own ministry telling him it isn’t working out as planned. Henry Cooke reports: Quote:

Analysis from Housing Minister Phil Twyford’s own ministry shows that two thirds of first home buyers wouldn’t be able to comfortably afford?the first lot of $579,000 KiwiBuild houses.

But calculations from New Zealand banks suggest they would offer a?much wider swathe of Kiwis mortgages on one of the homes.

Both analyses were shown to?Stuff?alongside the cabinet paper setting out KiwiBuild’s eligibility.

The conservative analysis from the Ministry of Business Innovation and Employment?(MBIE)?looked at whether the buyers would be able to service mortgage payments for less than 30 per cent of their income, an international “rule of thumb” for affordability. Close to a third of renters in Auckland already pay more than a third of their income just on rent.

The MBIE analysis found – assuming a 10 per cent deposit – that a family would need income of at least $121,000 to buy a home at the much lower price point of $515,000, and that just 32 per cent of recent first home buyers had income in that range.

The calculations from?New Zealand’s banks?show a much sunnier picture for KiwiBuild, with around 57.5 per cent of recent first home buyers able to afford a $579,000 KiwiBuild?and around 80 per cent of buyers looking at the homes?outside of Auckland in with a shot.

The banking calculators – which assumed a 20 per cent deposit and one child – said buyers would need a household income of between $80,000 and $99,000.

Close to two thirds (57.5 per cent) of recent first home buyers across the country had household?income above $90,000, according to MBIE.

Median household income in Auckland is $97,300, compared to $81,000 across the country. End quote.

I wonder when Phil Twyford is going to realise that all these experts are right and it is he who is wrong?

Watching this little rooster strut around is certainly amusing, if not for the fact he is wasting this government’s political capital faster than his mouth can spend it.

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