Editorial: Affordable vision could break cycle

I bought home in 1992 for $78,000.

I was 21, had saved up the 20 per cent deposit and was lucky to be earning enough money as a journalist to pay off the mortgage, with some help from flatmates.

It felt good to own my own home and it gave me a foot in the door of the property market.

I was thinking about the day I signed the dotted line for that modest, three-bedroom home when I was reading about Bob Clarkson's big plans in today's edition.

I have to hand it to Mr Clarkson. At a time in life when he could easily be sitting back and taking it easy, or doing everything he can to add millions to the self-made fortune he has already built, he's doing neither.

Instead, he's working to try to help people less fortunate than himself.

Mr Clarkson has plans to launch an affordable housing subdivision that will help people struggling to put enough money together to buy a house or pay one off.

The homes and sections, 1000 of them, would sell for $280,000 in Tauriko, in the valley between Wairoa River and the state highway.

At no deposit, the repayments will be $400 a week over 25 years.

The former National MP bought the 210ha block, stretching from Tauriko service station to Redwood Lane, three years ago and now wants to rezone most of it from rural to residential.

At face value, Mr Clarkson's vision has merit.

These properties, part of a larger multi-staged subdivision containing a mix of housing, will be made up of 160sq m, three-bedroom houses on 400sq m sections.

His vision speaks volumes about a humble person who tells it like it is and likes to put his money where his mouth is.

But the aspect I find truly amazing is that he could be making millions out of this if he was selling these properties at normal market value.

Instead, he's selling the land at cost.

High land values have lately become an issue in fast-growing Western Bay of Plenty, making it difficult to keep development costs down, and pricing normal couples and families out of the market.

Mr Clarkson's project, if successful, could break this vicious cycle and redefine the property development market.

It could set a new benchmark and potentially force other developers to become more competitive.

It might also help fuel the property market, which has experienced tough times over the past few years.

So, what are Mr Clarkson's challenges?

The answer is red tape.

I am no expert but was gobsmacked to read that he may have to pay between $1 million and $2 million for the resource consent process.

I have to wonder if this is just bureaucracy gone mad. What a waste of money, presumably to pay lawyers, consultants, for hearings and others.

Some would call it a gravy train.

Mr Clarkson wants to put his plans in front Tauranga's councillors first. Good luck to him.

His land is outside SmartGrowth's urban limit, the blueprint for the Bay's future residential growth.

Mayor Stuart Crosby has made encouraging comments but makes it clear there can be no special treatment.

Bob Clarkson has a proven track record in building things. He gets things done. He is a man who likes to keep it simple - but I have this feeling this will be anything but simple for him.

But I wish him the best of luck.