Prime Minister Bill English says the government is looking for answers on targeted rates in Auckland. Lower land prices up front, but higher ongoing rates payments for essential infrastructure reduce the overall price of housing?
The government and investors will earn a return from residents paying “targeted rates” on that infrastructure – essentially a user-pays way of funding roads and water pipes over a period of time.
These targeted rates bills are expected to come in higher than the typical rates bills we’re used to.
The government would be testing how much land values might fall, and how much that would be offset by higher infrastructure costs. “But these are, I think, steps in the right direction,” English said.
“I would expect that looking ahead, if the policies are right, then you’ll tend to see land being less expensive, but there being a bit more paid for marginal infrastructure,” the PM said.
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