PHOTO: Chlöe Swarbrick and Geoff Simmons say too much of Kiwis’ money is funnelled into property. Source: Breakfast
Green Party MP Chlöe Swarbrick says Kiwis’ reliance on property investment contributes to inequality, which is not helped by the fact people have “really perverse incentives” to do so to get even wealthier.
Speaking on TVNZ1’s Breakfast this morning with The Opportunities Party leader Geoff Simmons, Swarbrick said speculation on property was why New Zealand had a growing waiting list for housing, and why there were thousands of vacant properties in Auckland.
“We have really perverse incentives … to invest and funnel all of that money into property right now to establish, effectively, capital gains,” she said.
Swarbrick said some people were excluded from earning wealth in that way, which would lead to a “continued divergence” between the rich and poor, as well as older and younger generations.
“There has to be recognition that those outcomes, whether it’s owning a house or otherwise, is effectively hard work plus the environment that you’re in.”
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