Letters: A closer look at the PM’s Wellington apartment profit

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Prime Minister Christopher Luxon sold his Wellington apartment for $975,000 in early September. Photo / Michael Craig
OPINION
Apartment claims don’t add up

The Labour Party is running a campaign to paint Prime Minister Christopher Luxon as making a substantial gain on the resale of his Wellington apartment. However, looking behind the figures we have been given, the reality is very
different.

The sale price, we are told, was $975,000, with a capital gain of $180,000. However, agents charge for their services and the agent’s commission on the sale would be around $27,000 at current rates. Add in lawyers’ conveyancing fees and we can knock $30,000 off. Looking further, there was some upgrading work done to the property during Luxon’s ownership, which reduces the gain even further.
If Luxon had instead invested his initial $795,000 into a reasonably secure investment returning, say, 4% over those four years, he would have received $32,000 per year in interest. Over four years, that’s $128,000.
Such an investment would not have cost the property owners the council rates and insurance costs over that four-year period.
So we can deduce that this transaction is not the enviable money-making deal the Labour Party claims.
Peter Lewis, Forrest Hill.
MPs v the rest
Prime Minister Christopher Luxon’s response to questioning about the nearly $200,000 capital gain he can expect from his sale of real estate – “I’m wealthy and I’m sorted” – encapsulates the attitude of the coalition Government when it comes to social justice.
Luxon and his fellow ministers are insulated from the hardships faced by so many New Zealanders and their sense of entitlement makes them not just blind to others’ suffering, but willing to intensify it through measures such as the underfunding of disability services and sanctions on beneficiaries.
Andrea Dawe, Sandringham.
Men on a mission
Columnist Ryan Bridge presents his own mistakes in an early-morning drive to work as a reason to support the increased speed on our roads (NZ Herald, October 2). We are doing “dumb stuff”, he says, because our slow driving and warning sounds “dumb” us down. Well I never!
He’s not the only one, though, ignoring the evidence showing that lower speeds are effective. Nevertheless, it cut little ice when shown to Transport Minister Simeon Brown, another young man in a hurry to give rights to those who like to speed.
And we do like to speed, often drugged to our gills: 71% of all road accidents in our country involve our men. That really is a sad statistic. You’d think, having been young and impetuous themselves, they’d put in place protections rather than opening the gates to greater temptations.
Emma Mackintosh, Birkenhead.
Political precedent
Associate Health Minister Casey Costello seems to be setting a dangerous precedent in the world of relationships between ministers and ministries.
She has ignored advice from two ministries and acted on alternate advice without disclosing its source.
But has Costello considered what the impact will be on ministry staff? They make recommendations to ministers based on experience and evidence. If a minister demonstrates that they are prepared to disregard experience and evidence in one instance, why would they make an effort to offer good advice in future on any other matter?
Peter D. Graham, Helensville.
Life lessons
In his opinion piece (NZ Herald, September 30), Alwyn Poole thinks he can identify a source of more good teachers, but to know why people do not become teachers, we need look no further than himself. He is not working as a teacher. He is working as a consultant. Whatever reason he has for not being a teacher, that is why other people are not teachers.
After 40 years as a teacher, I think the problem with the education system – and other industries in New Zealand – is consultants. Why are there so many consultants? Because there is more money in consulting, rather than getting on with the job.
Martin Ball, Kelston.
Morning perspective
This morning when I went for coffee at my local cafe, I was joined by a lovely Israeli family. Mum and dad and three delightful children, all here for a holiday for one month to get away from the dilemma they face at home. They expressed no hatred for anybody, but admitted they found life very stressful living in a country which is currently going through such profound issues.
It made me think how ungrateful so many of us are when we complain about everything from education, indigenous issues, the teaching of te teo, poverty, homelessness, and our Government, to name a few topics. We do not have a situation where, within 90 seconds, we may be obliterated by incoming military weaponry.
I know there are arguments for both sides relating to their issues but, really, we have it so good here. We should just get on with living the good life that we have in New Zealand and enjoy each others’ company.
Dick Ayres, Auckland Central.
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