If National wins ...

[Daytr]

All in the timing ! ;-)
Seems like a reasonable policy at face value.
A little strange that all other policy comes from the Government, however in this case they are completely distanced from it & if there is any voter fallout they can blame the RBNZ I suppose. What I don't like is this policy in isolation, without addressing the issue of foreign buyers.
In theory this policy will make it cheaper for foreign buyers & more difficult for NZ investors.
How about a CGT just on foreign property ownership? Or a large stamp duty?

You spoke a day too early MVT !!!

[Major von Tempsky]

I think the reporters and other non economists still alleging house price inflation is a big threat are somewhat dated. The RBNZ has belatedly discovered what to do, the right tool, and it will keep pushing it in Auckland and anywhere else it's needed until the inflation is killed.

If speculators keep pushing and the RBNZ keeps pushing then ultimately a 100% deposit requirement in Auckland will be just the cold shower needed.

[BlackPeter]

All in the timing ! ;-)
...
What I don't like is this policy in isolation, without addressing the issue of foreign buyers.
In theory this policy will make it cheaper for foreign buyers & more difficult for NZ investors.
How about a CGT just on foreign property ownership? Or a large stamp duty?

not sure, Daytr.

Why do you think that foreign buyers are a problem - and why do you think that it would be in the best interest of New Zealand to punish them (i.e treat them worse than residents)?

I guess at face value your proposal sounds like what the extreme right wing requests all over the world: punish and throw out foreigners (xenophobia is everywhere), people who look different (white people in Africa and black people everywhere else, white people in Asia and Asian people everywhere else), and / or people with a different faith or race (I suppose examples are not necessary). For sure you are better than that - aren't you?

The problem we have is not whom the Auckland properties belong to, but that there are not enough of them to go around for all the people legally living in Auckland (and potentially some of them not legally living there, but this is unlikely to be the same group as the people buying the houses). Punishing foreigners might make some dim witted talk back guests and populists happy - and probably as well the Winston Peters of this world, but this strategy will do absolutely nothing to resolve the housing crisis. Punishing non resident foreigners would not add one single house, and it would not remove one single tenant either from the Auckland housing stock.

The other thing to consider is - New Zealand lives well off global free trade. If we unilaterally start to restrict this free trade, than we are likely to break some of the agreements both Labour and National signed during their respective reigns - and we would as well piss off the rest of the world (and there are dim witted populists everywhere, not just in New Zealand). And believe me, the rest of the world would hardly notice, if we can't sell anymore our agricultural products and if the tourist flow would drop to a trickle. We however would notice and feel the pain. They say it is not clever to throw stones when you are sitting in a glass house - it might be more sensible to resist from doing so.

[Daytr]

There is nothing xenophobic or racist in what I have said. The reason why immigration & foreign buyers are a problem is they are adding fuel to a already overheated property market in Auckland. At a time when net migration of NZers is unusually low due to returning Kiwis, its either a time to reign in immigration temporarily or tax their investment in NZ property. You use such emotive terms such as punish, xenophobia & suggesting racism when it is none of the above. In regards trade agreements every country decides their own policy in regards foreign property purchase in fact NZ has one of the most open policies in the world. A lot of countries don't even allow foreign ownership full stop.
There are no throwing stones, what a tax would do is make it more of an economic decision & the tax collected could be used to help fund the infrastructure their immigration stresses. It would also help take some of the heat out of the Auckland market where the majority of foreign buying is centralized.

I have travelled the world & lived overseas half my life. I love what multiculturalism brings, however that's not to say immigration or foreign ownership of property shouldn't be managed.

The rising power & NZs No1 trading partner is China. Back in the 80s it was Japan that spread its corporate wings. China is different & the impact will be multiplied for one obvious reason being there is 15 times as many Chinese & NZ is not even the population of one medium sized Chinese city. The other, is that unlike the Japanese, the Chinese are natural travelers & don't have the same cultural attachment to living in China. I am highlighting China purely has they are having the biggest influence & have the shear numbers of population that dwarf other countries.

I'm not a fan of bigger is better in regards population. One of the reasons I believe NZ is special is that it is relatively underpopulated & we can enjoy a beautiful uncrowded environment. Its a personal view & I would rather keep that than end up like most other countries. I also think its why a lot of tourists come here.

[elZorro]

I think housing is a really tricky issue. But no amount of deposit regulations will stop a fired-up auction over the last house available in Auckland. The solution has to be more housing stock. Yeah, well, Labour had the answer to that.

[westerly]

not sure, Daytr.

Why do you think that foreign buyers are a problem - and why do you think that it would be in the best interest of New Zealand to punish them (i.e treat them worse than residents)?

I guess at face value your proposal sounds like what the extreme right wing requests all over the world: punish and throw out foreigners (xenophobia is everywhere), people who look different (white people in Africa and black people everywhere else, white people in Asia and Asian people everywhere else), and / or people with a different faith or race (I suppose examples are not necessary). For sure you are better than that - aren't you?

The problem we have is not whom the Auckland properties belong to, but that there are not enough of them to go around for all the people legally living in Auckland (and potentially some of them not legally living there, but this is unlikely to be the same group as the people buying the houses). Punishing foreigners might make some dim witted talk back guests and populists happy - and probably as well the Winston Peters of this world, but this strategy will do absolutely nothing to resolve the housing crisis. Punishing non resident foreigners would not add one single house, and it would not remove one single tenant either from the Auckland housing stock.

The other thing to consider is - New Zealand lives well off global free trade. If we unilaterally start to restrict this free trade, than we are likely to break some of the agreements both Labour and National signed during their respective reigns - and we would as well piss off the rest of the world (and there are dim witted populists everywhere, not just in New Zealand). And believe me, the rest of the world would hardly notice, if we can't sell anymore our agricultural products and if the tourist flow would drop to a trickle. We however would notice and feel the pain. They say it is not clever to throw stones when you are sitting in a glass house - it might be more sensible to resist from doing so.

Five generations of my family have been born in NZ and the last generation will probably find it harder than their predecessors to own their own home.
It is not xenophobic to question the effects of immigration, nor is it racist to query the effects of large numbers of different cultures arriving in NZ However it is very easy to label anyone who expresses any reservations a racist or a xenophobic. It seems to me that it is felt by many new arrivals that NZ should change to suit them rather than that they should adapt to local customs. There are evidently many other countries where maybe they would feel more at home.
You should read the Australian regulations on foreigners purchasing property

As for free trade NZ is a very small country which most of the worlds population have probably little knowledge. We have limited bargaining power and to sell our produce under free trade rules means we must accept products from other countries which we can produce ourselves.(pork is an example)
I wonder if we would be better off just dealing with anyone without the requirements of free trade?

westerly

[craic]

The message I got from todays announcement is that we have to control the housing market in auckland and today we fired a shot. If that is less than effective, we have a machine gun with a whole belt of shots ready to fire For Ez to suggest that Labour have the answer, "more housing stock" is naive.

[elZorro]

The message I got from todays announcement is that we have to control the housing market in auckland and today we fired a shot. If that is less than effective, we have a machine gun with a whole belt of shots ready to fire For Ez to suggest that Labour have the answer, "more housing stock" is naive.

Technically, the Reserve Bank fired a shot, not the National Govt. National's policies have tended to worsen the situation for anyone but those wanting to sell property close to a recent high. I don't think I'm being naïve to suggest that if a few thousand extra people turn up in Auckland, but it takes years to build enough houses for them, there will accordingly be an issue with the house price index in Auckland. It's in the charts. There is only one outfit in NZ big enough to make an immediate difference, the State.

[craic]

I never suggested that anyone other than the Reseve Bank fired the shot. The Labour party simply farts into the wind.

[winner69]

EZ, Andrew getting grumpy

Biggest deception ever he says this surplus story

http://www.stuff.co.nz/national/poli...issing-surplus