New Zealand is banning foreign home buyers

[Sharkhunter]

Hawaii should do that so ordinary working class can buy a decent home for less than one fucking million dollars.

LOL America dosnt work that way

 

[original doom]

Australian real estate has essentially been growing forever. We also have a ludicrous amount of personal debt (as a nation that is).
"Mum and Dad" investors are a disproportionate amount of our real estate market compared to other nations.
Anything more than a slowdown in growth will cause serious economic issues.



It's always "The Humans Are Dead" for me.

its not mum and dad investors pushing shitboxes into the millions.

 

[Ruprecht]

its not mum and dad investors pushing shitboxes into the millions.

On a national scale, yes it is. Regardless of whether you blame it on the consistently bullish nature of our real estate market, the negative gearing legislation or some other combination of factors, "Mum and Dad" investors are the most significant portion of our real estate market (excluding owner occupiers).
35% of mortgages are amateur investors, which is about three times the rate in the UK, US and Canada.
They may be over represented in certain regional markets (notably in Melbourne), but overall foreign investment has been falling for a while now (it peaked in 2014), and only constitutes 8.4% of the new home and 5.5% of the existing home market respectively.

 

[cottagecheesefan]

It's natural beauty is part of why it should be protected

Part of the beauty is that it is on a very small, relatively new, and unstable tectonic plate. The bigger, Australian plate is already collapsing into itself on the west side of the plate. Once that tectonic activity increases, New Zealand could literally break apart and collapse into the ocean.

Serves them right tho, for letting The hobbit to be filmed there. Terrible movie

 

[original doom]

On a national scale, yes it is. Regardless of whether you blame it on the consistently bullish nature of our real estate market, the negative gearing legislation or some other combination of factors, "Mum and Dad" investors are the most significant portion of our real estate market (excluding owner occupiers).
35% of mortgages are amateur investors, which is about three times the rate in the UK, US and Canada.
They may be over represented in certain regional markets (notably in Melbourne), but overall foreign investment has been falling for a while now (it peaked in 2014), and only constitutes 8.4% of the new home and 5.5% of the existing home market respectively.

perhaps foreign investment is overstated but if you viewed it from a suburb vs suburb angle (as you mentioned) most chinese investments are within a certain area. as oppose to mum and dad investors buying up property australia wide. australias nicest homes in the leafy suburbs should not be purchased by chinese imvestors, surely you must agree with me there. which is why australia should go one step further and make all foreign purchases within the last 10-15 years illegal. if they dont want to purchase homes in their own countries thats their issue. i should run for prime minister...

do you think australia should adopt new zealands policy ?

if 35% are amateur investors then what qualifies as a amateur investor. how many homes.

there will be many bankruptcies.

 

[Ruprecht]

perhaps foreign investment is overstated but if you viewed it from a suburb vs suburb angle id wager most chinese investments are within a certain area. as oppose to mum and dad investors buying up property australia wide. australias nicest homes in the leafy suburbs should not be purchased by chinese imvestors. which is why australia should go one step further and make all foreign purchases within the last 10-15 years illegal. if they dont want to purchase homes in their own countries thats their issue. i should run for prime minister...

do you think australia should adopt new zealands policy ?

Sure, foreign investment is mostly in apartments (construction) and homes in the upper end of the market.
Given the falling rates of foreign investment and substantial increase in first home buyers, I think the existing steps have been adequate. Unless foreign investment keeps driving up prices when interest rates increase, I wouldn't consider it a good move. Suddenly eliminating between 5-8% of demand is too great a shock.
Besides, most of the anti-Chinese stuff is just the same paranoid nationalist guff it's always been from exactly the same people.
If it was based on a factual appraisal, they would have given up when the supposed threat of Japanese investments never materialised.
Alhough of course the geopolitical risks are different with Chinese investment (outside of the housing market obviously). Mostly due to the balancing act with Chinese economic interests and our security alliance with the US.

 

[Edgy Brah]

As sustainable as population growth for economic growth (especially without infrastructure investments to match, and failing to account for environmental carrying capacity).
Short term thinking.

They could reinstate capital gains tax rate that Howard cut and end negative gearing on residential property.

 

[Ruprecht]

They could reinstate capital gains tax rate that Howard cut and end negative gearing on residential property.

That'd reign in demand and slow price increases (although I'm not sure how they'd calculate the impact and moderate it. Like banning foreign investment, it's a bit of an on/off switch), but it doesn't really address the long term sustainability of economic growth through population growth (which is part of our ever bullish real estate market).

 

[funcrusher2007]

America should do the same with some slight provisions.

Asian or foreign buyers could buy up to two houses maximum..for living and one investment property.
No Asian/foreign cash buyers/investors looking to gouge and inflate housing prices and maximize profit at expense of Americans cost of living.

Especially here in SoCal.

 

[Fluffernutter]

In my town, the housing market is over inflated. However, it's not from foreign investors. Rather it is from baby boomers that are trying to sell their homes much higher than they are worth.

So much of one's assests and retirement are tied to one's home that they are unwilling to negotiate.

 

[Law Talkin’ Guy]

I 100% support this. Canada should absolutely follow this.

 

[bufetadanacara]

Either this or you tax the ever living fuck out of it (which my state has started for absentee land owners).

Each country should have their own people’s interests first

I hate that throwing money at everything is a valid solution. Government everywhere is North America is already way too damn big and more tax dollars aren't going to help anything.

They need to ban foreigners from buying homes and be done with it. Focus on the people who made the country the great place that it is. I agree with each country should have their own people’s interests first.

 

[Possum Jenkins]

So big government is deciding what kind of people can have or increase their personal property.

This blatant, radical, gruesome violation of the free market will surely meet some terrible resistance from those who love liberty.