90 seconds at 9am: Aussie crackdown on Chinese real estate buyers; Terry Serepisos' cheques bounce
26th Apr 10, 8:49am
Bernard Hickey details the key news overnight in 90 seconds at 9am in association with the BNZ, including news the Australian government announced a crackdown over the weekend on foreign purchases of local real estate. This comes after weeks of talk that temporary Chinese entrants were embarking on a buying spree that was pushing up house prices across the Tasman. Australia will force any temporary entrant to obtain Foreign Investment Board approval and will force any temporary entrant who is leaving to sell their real estate. Also, Australia is preparing to announce its tax reform plans on May 2, which is this Sunday. Our government will be watching closely because it has said its own tax reforms will be careful to keep in step with Australia's plans. Meanwhile the Dominion Post has reported that Wellington property developer Terry Serepisos is having problems paying his bills. It reports people saying Serepisos' cheques have bounced and subcontractors are unpaid. He has also failed to pay NZ$2 million worth of rates.
Mr Yong said Mr Serepisos "promised and promised" to pay and a cheque finally arrived last year. "[But] when I put the cheque in the bank it bounced back." When he saw Mr Serepisos on TVNZ's The Apprentice he thought: "This is too much for people to stomach." As for Mr Serepisos' statements that he was a victim of "tall poppy" syndrome, Mr Yong said: "I don't have problems with tall poppies. I have problems with people who don't pay [their bills]."Finally, the Greek government has requested a bailout and is refusing to restructure its debt, which is important because European banks face over 100 billion euros of losses if Greece were to default and restructure its debts.