The Aussies are concerned yet they already have some restrictions on what residential property foreign investors can buy. NZ is asleep at the wheel.
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OCR down and banks follow with mortgage rates ...and no doubt start fighting for every loan
That'll keep things bubbling along for even longer
The amount of rubbish that a property would produce depends on how many people live at the address, the amount of recycing they do etc. So a one-bedroom place occupied by a greenie would not produce much trash. I agree rubbish collection should be on a user pays basis.
Charging rates evenly across all residential properties - if I understand you correctly that would mean charging a one-bedroom apartment or house the same as a multi-bedroom Remuera mansion? I am not sure that would be fair or user-pays. It would end up being a regressive tax with poor pensioners subsidising wealthy large families!
Auckland owner-occupied housing have provided their owners handsome tax-free capital returns over the years, with the benefit of ownership, namely accommodation, not having any imputed income tax levied. Why shouldn't those of us who have more valuable properties in highly sought after areas which have seen greater capital appreciation pay more in the way of rates. There is always HER. Renters have to find their rent out of tax-paid income. Rates are a small price to pay and already have uniform charge components regardless of the value of the property.
Some alternatives for local government funding:
1. A local sales tax - would hit the poor as they do not have much discretionary spending / cannot save.
2. Wealth tax (on each resident's wealth, both financial and real estate). those who complain about high rates, would be unlikely to like this option!
3. Poll tax - a uniform tax on each resident (either over the age of 5 or 18). Would hit the poor. Anyone remember the riots in Britain when they tried to introduce this type of tax?
4. A local income tax. The income-poor pensioner in an expensive house would like this one. However just imagine the objections to another income tax from high income earners. There would be another argument over whether it should be flat or progressive.
Finance Minister Bill English this morning raised the spectre of Auckland house prices possibly dropping.
Surely some mistake! lol
Fell by $20,000 in July
https://www.reinz.co.nz/shadomx/apps...siteName=reinz
Well,its looking like NZ property is now going to cost the Chinese more(since devaluation)--the knock on affect could effect house prices in other ways.(China housing bubble)
Rental prices are down in Auckland(I have found)---Im seeing the property market looking a bit vulnerable atm--If China has a crash in property-and Oz--you can bet you will see one here as well(housing shortage or not)--at best Im picking the market taking a breather(and Im a property owner)
I cant really think of an ideal place to park money atm
Skid,
I don't mean to alarm
But unfortunately the property market has crashed in China (earlier this year).
This happened about the time the construction industry in China ran out of new high rises to build (hence the massive slump in iron ore price that has hit AUS so hard)
At the time the Chinese government told investors to start investing in the stock market. Which has since crashed (mid July and has wiped out half the wealth of most Chinese millionares).
Tho some companies listed on the Chinese stock exchange were close to 400 times their worth and had not turned a profit in years.. it was pretty obvious a crash was going to happen..perhaps obvious to everyone but the Chinese
Now China is trying to kick start their exports again (which dropped 8% in the last year) by dropping the value of their currency. This took everyone by surprise... basically china has said it was moving away from exports to a domestic driven economy (This may mean a number of Chinese start selling foreign properties to pay back debt or for the return)
On top of all this..Now oil, gold, and milk prices are all crashing globally ..So yeah the world is in real bad shape.. all the traditional methods of wealth generation are failing and Europe is still panicking about the possibility of the Euro zone breaking up..
I think New Zealand will be ok tho. We are geared for exports and with the falling NZ dollar our economy will keep ticking over at about 3% growth so a property crash is unlikely.. but a cooling definitely if driven by foreign demand
(Young Aucklander desperate to get his first home)
I think Chinese prices have fallen but not crashed. For one thing you need to have a 30% deposit to buy a property in China. Maybe we should have that here too - or higher - for investors. Interesting article from the FT "What next? A China housing crash?" http://www.ft.com/intl/cms/s/0/8d3c2...#axzz3iYIQDN00
I think there will be continued demand for NZ property by Chinese investors. Chinese capital controls are loosening, so any cooling in their economy and reduced purchasing power of their currency may be off-set by that. NZ also has a weak currency at the moment because of commodity price uncertainty. Plus, NZ will still be regarded as a safe haven for Chinese investors. I think NZ should still introduce Australian-style measures restricting foreign buyers to new properties.