mattwnz:Geektastic:mattwnz:joker97:old3eyes: One of the main reasons house pricing is so high in Auckland is that the Realtors play on the greed of the seller telling them that they can get way more by going to auction than selling the traditional way with a fixed price and of course inflating their commission. You even see the agencies advertizing on TV that they can get x% more that other agencies.. companies..
the ONLY reason for rising prices is demand > supply.
10 houses in Epsom for sale, 100,000 people want it.
the ONLY way to drop the price is: reduce demand - either you make it illegal to buy houses, or you make people NOT want to buy houses; OR increase supply: which is not possible in microlocalities. there are only so many houses in Epsom.
but if every month you have 10 people with 10 million bucks immigrating into AKL, well ...
True, but there is nothing being done at all to fix this problem. No GST on new builds may help, but isn't enough, as their are monopolies and duopolies in the building products sectors. We pay up to triple for drywall than they do in the US for the same product. Some retailers do now import some of it, and it is slightly cheaper.
It is also overseas investors buying houses, without even coming to NZ to see it. When I was at school, some of the students families puchased quite a few houses. So they don't just stop at one house either. I would like to see only NZers be allowed to buy houses, they do restrict them overseas. I would like to see overseas buyers only allowed to buy houses if they build them eg new builds. That should increase new builds.
Where do you think that they restrict them?
You can buy a house in the USA or the UK, for example. And anyone in the EU can buy in any other EU state.
That is two very big markets.
I know you cannot in some places like Vietnam - but I do not really think I want NZ compared to Vietnam.
The question you need to answer is not how can I stop foreign nationals buying it is "why are they richer than me?".
If you legally restrict my property rights, I will expect compensation if it results in my asset losing value.
Well I believe they restrict them in some Australian states for a start. http://www.exfin.com/australian-property-firb . I believe that is on an already established property, and not on building a new one. I wouldn't be againest this sort of law change. Also I don't believe you can buy property in China. You maybe able to buy in the USA, but they have pretty big restrictions on people living there.
I would doubt any government would pay any compo, as when the government changes rules, they are done to fix a problem and to benefit the majority of NZers. It would be almost impossible to prove what amount you may have lost anyway, by not selling to an overseas investor. I didn't get any compo when they changed my lifetime drivers license to 10 years, and now have to pay to renew it every 10 years, when I had previously paid for it up until about 2050.
I don't really think you can compare wiping tens of thousands - indeed, millions on some property - of dollars of value of something owned by just about 50% of New Zealanders to cutting the length of time your driving licence lasts.
The restrictions in places like the USA restrict whether you can actually become permanently resident there not whether you can buy a house and use it when you visit as a tourist or rent it to a local. Not many comparable economies actually ban all forms of foreign ownership.
It's also hard to do. If you ban foreign individuals from owning a house, they will merely form a company domiciled in NZ and use that. Or form a trust. Or form a company domiciled overseas. If you make restrictions too complex or too harsh you will eventually damage business - what happens if a US company wants to own property here for business purposes? - and/or increase compliance and monitoring costs.
I do not personally want NZ to be perceived as some sort of parochial backwater which lives in a protectionist bubble circa 1970. As I said, the actual question is why are people poor here not why do overseas people buy houses.
It's perfectly possible to earn a lot here but so few people seem to bother trying: aspiration seems very limited.