Editors choice comments
It's a bit disappointing but appears we could create a synthetic ban using tough disincentive taxes (if Government was so inclined - which its not - so a moot point)
by: Keyser Söze
If we have to accept property purchases by overseas buyers, at least make it worthwhile to the exchequer.
Say 20% stamp duty , forfeiture to the crown if avoided/evaded using proxies etc.and payable again for any transfer of ownership exceeding 25% to any other overseas entity. To rub it in add an annual tax on capital value.
by: Basel Brush III
For some time In Australia The Government and the Federal Police have suspected that the Australian Property Markets have been used by Organised Criminal Groups from Asian Countries, and some Internal Crime Syndicates, to launder Dirty Money from Criminal Activities of all kinds. The Australian Real Estate Industry have been issued with directives by the Government to tighten up the reporting and auditing of these property dealings, but have been slow on the uptake. One has to wonder how much Dirty Money from Asian Crime Syndicates and other Criminal Groups may be hidden in Auckland's...by: knitwitz
Tariffs on New Zealand dairy are almost irrelevant in the US, Canada and Japan.
Does anyone seriously believe that US, Canadian or Japanese consumers want palm-kernel dairy, palm-kernel beef? The market runs broadly from organic to grass-fed to pasture-raised to corn-fed to feed-lot. And palm-kernel fed?
The New Zealand dairy industry, the world's largest consumer of palm kernel feed (PKE) by far, has found its own new low in the market. And we expect any sort of demand, let alone premium, for the stuff? In first-world markets?
The Auckland market peaked a couple a months ago, I don't know anyone buying but there are plenty selling hard.
Anyone would think that a market boosted by offshore buyers, would upon their reduction see a sudden boom in household debt as locals who couldn't get into the market at all are suddenly winning the vastly inflated auctions. Oh, wait, we are seeing that.
Where have all the Chinese buyers gone?
Please provide your IRD number and NZ bank accounts numbers please to settle the sale..., no we don't discount the GST if you pay cash, hello hello...you still there , hello??
You have to imagine there are a lot of people who have made considerable profits from investing in and trading Auckland property, some of which will not have returned those profits as income. The last thing they will want to do is give their lawyer an IRD and Bank Account number as there is potential for the IRD to look back in the past through records at LINZ. People will use friends, family member and associates but there will always be the risk of being potted and investigated. We are going into interesting times.
Auckland the Super City - amalgamation - consolidation - economies of scale
What were, and what are the dividends? - where are these dividends? - did they ever materialise?
Or do we now have a supersized set of unsolvable insurmountable problems
by: two otherguys
We all need to go out today and buy investment properties in Auckland as prices will surely continue to go up as a result of this news.
Easy answer is that ASB should speak. Tax is a public responsibility, and responsibility of any corporate is to work properly with it. If there is any question, and there is in this case, then they need to speak.
NZ does not conform to normal economic rules, it is in a paradigm bubble. Bill English has no clue. This is the new world.
Fail big time you. Chinese capital controls are being relaxed. You will never get back into the market like you were. Prices are skyrocketing $500-$1000 per day. This will continue forever because chinese are making more people than we can supply land to.
Mr. Church apparently is incapable of referencing his own industry statistics.
Fact: The REINZ stratified median index for Auckland house prices peaked in July 2007 and then fell 14.6% by November 2008.
What a muppet - but he is the official salesmen for real estate agents - how glorious.
by: Keyser Söze
Wow just wow. Prices only ever go up. New normal. Auckland is different. Infinite wealth. Leverage. Get in. Never will be this cheap.
I think the interesting statement he makes is that markets are overvalued because of central bank behaviour. The world is a bubble, and yet there are still people putting down 30% deposits on houses that are probably more than 30% overvalued. At least BE is talking some sense rather than just spin about the state of the world economy.
Why do pro-migrationers hate NZ so much that they have to change it?
Key hates NZ as it is. He hates our flag. Hates our built heritage (Chch Cathedral etc). Hates our native population (wants to fill us with non-natives ie those not born here).
There is nothing wrong with NZ being small. There is nothing wrong with NZ not being cosmopolitan.
NZ is NZ stop trying to change it.
Fact is that we are better off without migrants, they lower wages, drive up house prices and cause infrastructural mayhem.
I give Invercargill as an example of how NZ can be. It has had a stable or declining...by: Chris_J
I hope those people in Auckland who have seriously big mortgage payments and other housing outgoings and who are struggling to meet those commitments are keeping their eyes on the news of late. A lot of people do not read the paper or even follow the news online. And the news seems to be pointing towards one fact. That the Auckland housing market at best is slowing down, at worst it is on the verge of falling back in some way. Negative equity is a horrible place to be in. You are making large payments but do not seem to be getting ahead and the Bank always has the option of calling up the...
Interesting that you talk about fear and greed. I think a lot about those two attributes.
I subscribe to the notion that you temper your fear and greed given the circumstances.
"Be fearful when others are greedy, and be greedy when others are fearful."
At the moment there are a lot of greedy, unsophisticated people floating around who have more access to credit than they do financial literacy (who like to call themselves "investors" or "tutors").
This tends to make me fearful.
Increased supply and people shifting out of Auckland are two factors amongst many. A number of "investors" do not want the IRD in their lives as they have issues that would need to be sorted out if the IRD caught up with them. They will either do nothing more or will try to circumvent the need to register with IRD in their names. Secondly a lot of people have lost money in the share markets. It looks this scenario is starting to affect the Sydney housing market and it might be starting to bite us here. Markets are all about confidence and fear. Bears and Bulls. Maybe the bulls are starting to...
Agreed. Self-certification works for electrical, HVAC, plumbing and so on. Put single-storey, light roof, modest size residential builds under Schedule 1 BA 2004 and save squillions. Put the now unemployed inspectorate to work in the panelised construction production lines. Win, win.
I might come back and review this comment in 5 years but I think its about right (purely fictional Crystal ball gazing at this stage):
The Auckland housing market peaked in 2016 after strict migration controls and foreign buyer rules were introduced by the Key government in an attempt to stem falling popularity as the public backlash against rising unemployment and unaffordable housing rose.
Since then house prices in some parts of Auckland have fallen by over 30% to levels last seen in 2010.
The recent decline in unemployment from the record 30 year high is largely due to the government...by: Chris_J
+1 to "more expensive piffle from a government that specialises in it."
We may as well give Smith and Key some fiddles so they can provide some entertainment while the housing crisis burns out of control.
The collateral damage to our economy and our egalitarian values is extreme and we get this sort of fake leadership today from Smith regarding doing what? to make building easier and Key stating out of control immigration doesn't impact on housing, infrastructure or employment is pathetic.