© 2018 Lotza Design

An Introduction

A property title with the covenant that once the property value is determined the property thereafter will increase in value only at the government published Consumer Price Index rate plus the cost value of any subsequent substantial improvements. 

The Property Market Model

New property created under the standard market model is managed to match the standard market value for an area plus design/marketing inducements to higher price.

 

Where a property can be constructed (land plus building) profitably for well under the area perceived market value it will still be sold at the market value but with a much higher profit taken, else the first buyer collects the difference as a windfall to be cashed in at the first resale.

 

It is this structure that diminishes government interest in social housing as the perceived market value applies pressure to rental rates and/or political pressure on a state’s assets holding “return on investment”.

Comparing house prices in New Zealand to those of Germany... http://morganfoundation.org.nz/german-house-prices-flat/