- StevenParticipant@steven1982Join Date: 2017Post Count: 189
OK, so NZ government wants to ban foreign investors from buying NZ properties, but Aussies are protected.
There is quite some speculation going on at the moment, with quite a large number of people thinking NZ properties price will drop. What are people’s view here?
I think this represents some good news for home buyers, but is can also be an opportunity for eligible investors too.
1. Unless they want to deport people out of NZ at a massive scale, but otherwise the existing housing shortage will continue until more houses are built. So people still need to live somewhere. So the demand is still there.
2. Government intervention in the form of investing new infrastructure means new hot spots will emerge.
3. Price will probably drop in a reasonable manner within overly hot areas such as Auckland, but doesn’t mean the same will happen everywhere. In some areas it may end up going up.
4. Unless the NZ government is purposely trying to destroy the property market, otherwise they will try to cool it off, meaning value will probably decrease for a bit but won’t slump. This means while it does become a bit more affordable for potential home buyers, it also becomes more affordable for investors too… but then will the potential home buyers be able to save up enough deposit? My feeling is “not with the kind of money spending habits for most people” and for those who can, the answer is “they can’t save not fast enough”. And with less foreign investors to compete against, this is good news for NZ local investors (and probably Australians).JaxonParticipant@jaxonaJoin Date: 2014Post Count: 284
ok, if they stop international invest, yes it will slow
time will tell.StevenParticipant@steven1982Join Date: 2017Post Count: 189
Doesn’t seem to be anything “new” though.. they are banning foreign investors from buying existing properties, but the ban does not stop them from buying new ones.
Australia did exactly the same thing years ago and that didn’t stop the price from skyrocketing.