So what are the implications if the Reserve Bank ratcheted up the OCR to say 6-7%? I was working at Westpac about that time, some fixed loans were still over 10%.
Not as a mechanism to quell inflation but just lift mortgage rates.
Someone else mentioned it was political suicide, maybe now, but what about another 30 years, where the renters are suddenly the majority of the voters?
Interest rates aren't just for homes.
Asian immigrants. They are wealthy. How much is a house? 500k. Oh ok here is a cheque. 927660? Oh ok her is a cheque. To me there are many issues. Start with CGT and no foreign non resident buyers that's all fair and a start
Never generalise. Not all, perhaps not that many are that well off. Many come to start a new life from very humble beginnings.
Of course in a city of 1 million it is easy to see the handful (hundreds - thousands) of wealthy foreigners.
Why? Well let's say there is a country with 1,000,000,000 people, and say 0.1% of them are filthy rich and 10% are pretty rich. That gives 1,000,000 filthy rich and 100,000,000 pretty rich people who've saved up all their lives.
Let's say 0.1% of those want a piece of your lifestyle, well, I present to you Australasia.
Now, multiply it by a factor of say 2-3, to account for the rest of the world, who also happen to want a piece of your paradise.