OK, so now we have policies from both major parties which 'address' the housing crisis.
Is it just me of are both of them to a greater or lesser extent suffering from the political position of: 'We have to do something, but what ever we do it better not actually change anything'?.
National restricts Loan to Value Ratio. I understand this can reduce risk for bank and this is good. But surely the effect on the housing market is going to be minimal as only those entering the property market will really be effected. If you already own a house and selling it to buy a new one or buying a second house as a rental/investment property then the amount of money you are loaning versus the value you have will be minimal, right? And there is no detailed 'assistance' for first home buyers because that would be like a hand out and those are bad.
Labour introduces restrictions on 'foreigners' buying houses here because property speculation increases prices. Then exempts Australians, fair enough, and people with PR, also fair enough. Of course New Zealand property speculators don't aren't a problem because... Well they'er just not OK? This means we get to exclude a small number of buyers and look like racists. Great!
My theory is that 'cooling' the property market is about the best way to not say de-valuing the property market. You know for all those people who have been investing there money in property for the last 30 years and are relying on property values going in the same direction to fund their retirements. Yeah, those people represent a larger voting block (I didn't say financial contribution block, and you can't say I did) than first home buyers who are getting shut out.
Property prices in Auckland are not 'unaffordable' if they were they would go down to a level people could afford them. This means some people are making a lot of money from property in Auckland and understandably don't want this to stop.
The bubble has formed, it will get bigger until it bursts because people with a choice will want to hold off till the crash happens and prices go down.
Can't wait and I hope Wellington prices go down too.
I miss anything?