New Zealand Passes Law to Crack Down on Foreign Home Buyers • Hacker News Board

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#11

Post by briandear » Wed, Aug 15, 2018, 5:19 PM UTC

Tiktaalik wrote: post #3

Seems reasonable to me. Housing should be for housing people, not a speculative financial investment. It's reasonable for cities to ask that people show that they have some skin in the game, that they're living, working, paying taxes and contributing to and enhancing the community.

If they own a house, they are paying taxes, so they do have significant skin in the game. They pay property taxes despite not using the local schools or most other city services.

As far as not allowing housing as a speculative financial investment, there are some significant unintended consequences there.

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#12

Post by mabbo » Wed, Aug 15, 2018, 5:22 PM UTC

Sounds like a good time to start a NZ real estate company that takes investments from foreign buyers, buys the houses they tell me to buy, and then rents it out to them when they visit at very low prices.

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#13

Post by pouetpouet » Wed, Aug 15, 2018, 5:22 PM UTC

briandear wrote: post #11

Tiktaalik wrote: post #3

Seems reasonable to me. Housing should be for housing people, not a speculative financial investment. It's reasonable for cities to ask that people show that they have some skin in the game, that they're living, working, paying taxes and contributing to and enhancing the community.

If they own a house, they are paying taxes, so they do have significant skin in the game. They pay property taxes despite not using the local schools or most other city services. As far as not allowing housing as a speculative financial investment, there are some significant unintended consequences there.

way less than poeple living there. Unless there is some sort of a unique land value tax

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#14

Post by user5994461 » Wed, Aug 15, 2018, 5:23 PM UTC

briandear wrote: post #11

Tiktaalik wrote: post #3

Seems reasonable to me. Housing should be for housing people, not a speculative financial investment. It's reasonable for cities to ask that people show that they have some skin in the game, that they're living, working, paying taxes and contributing to and enhancing the community.

If they own a house, they are paying taxes, so they do have significant skin in the game. They pay property taxes despite not using the local schools or most other city services. As far as not allowing housing as a speculative financial investment, there are some significant unintended consequences there.

The tenant covers all the taxes and costs through his rent.

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#15

Post by lawnchair_larry » Wed, Aug 15, 2018, 5:23 PM UTC

Good move. More cities need to adopt this. There is a flood of foreign capital into major western cities that is hurting those economies. And a lot of denial that this is happening.

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#16

Post by antisthenes » Wed, Aug 15, 2018, 5:24 PM UTC

Sounds like pulling up the ladder after all the people who bought the houses already climbed it.

What about all the people who have already purchased and are just holding onto an empty house for speculative reasons?

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#17

Post by VectorLock » Wed, Aug 15, 2018, 5:26 PM UTC

pouetpouet wrote: post #13

briandear wrote: post #11

Earlier quoted context omitted.

If they own a house, they are paying taxes, so they do have significant skin in the game. They pay property taxes despite not using the local schools or most other city services. As far as not allowing housing as a speculative financial investment, there are some significant unintended consequences there.

way less than poeple living there. Unless there is some sort of a unique land value tax

Like property tax?

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#18

Post by pc86 » Wed, Aug 15, 2018, 5:26 PM UTC

antisthenes wrote: post #16

Sounds like pulling up the ladder after all the people who bought the houses already climbed it. What about all the people who have already purchased and are just holding onto an empty house for speculative reasons?

Are you suggesting the government steal their property?

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#19

Post by user5994461 » Wed, Aug 15, 2018, 5:27 PM UTC

jgibson wrote: post #10

kylestlb wrote: post #7

Earlier quoted context omitted.

Are there any numbers from areas with expensive housing that detail foreign investment as a % of total housing purchases? Would be an illuminating stat.

They have a graph in the article that showed foreign ownership (not necessary as investment) that showed it at around 3% for NZ over all, with between 5-10% in popular places (Queenstown and Auckland)

Foreign investments only go to the biggest city. It's meaningless to look at anything besides that.

Re: New Zealand Passes Law to Crack Down on Foreign Home Buyers

#20

Post by breitling » Wed, Aug 15, 2018, 5:27 PM UTC

Hope the Canadian government learns from this. We desperately need it. (ya, I know I know there will be trickle down impact of so much foreign money pulling out, but average home price of $1.36MM is unbelievable for the local salaries)