We still await the identity of Mr. Stanhope’s secret lender for his land rent scheme.
In the meantime the Liberals have handed over a wedge of hilarious correspondence, by what feels like everyone involved in the scheme, expressing their doubts about it.
Someone (presumably in Liberal HQ) has handily highlighted the good bits but I will briefly paraphrase the revealed concerns:
- 1.) Banks don’t want to lend just for construction without the value of the land guaranteeing the loan.
2.) Cost of construction can often be higher than the value of the completed dwelling, creating negative equity from the get go.
3.) The lack of security would force banks to charge higher rates of interest, notso hotso in a scheme intended to make things easier for the less affluent.
4.) The less affluent trying to use the scheme will end up owning depreciating asset while the ACT Government retains ownership of the ever more valuable land.
Our brave leader however is never graceful in defeat and still reckons he can make this turkey fly.
The question is why he thinks it will be a good thing even if he does get it in the air?
UPDATED: According to Zed Seselja the Chiefly one has had a bit of a tanty about this. Zed is apologising on our behalf:
- “On behalf of the Legislative Assembly I would like to apologise to the Management and staff of Genworth who, in good faith made every attempt to engage with the ACT and its housing affordability options. That Genworth chose not to touch the Stanhope Land Rent Scheme should not mean they are subjected to baseless and outrageous allegations by the office of the Chief Minister.
“Firstly I am calling on the Chief Minister to apologise for the outrageous allegations made by his office that cast aspersions over the management and staff of Genworth,” Zed said “Secondly, the Chief Minister should answer publicly why the Opposition were not given a copy of the damning letter that appeared in the media this morning.
Anyone know what that was about?