Govt needs to restrict foreign buyers of NZ property, Green Party says, following real estate agent concerns in Auckland

Typical politicians shorterm reaction to some situation in Auckland.  But taking a long term view it's important that as a nation and a group of citizens we continue to own our own stuff.  There is economic benefit in doing so.

kiwis will have less money if the greenies get in

no forestry or mining will be allowed because a rare worm may be located somewhere,

they may find a policy like they want a bit harder to bring in than they think.

Didn't the law allowing squating in England come about in in circumstances like this?  A terrible shortage of houses for the masses and a lot of houses lying arround empty owned by wealthy absentee owners.

At the very least, shouldn't these foreign house buyers be required to pay tax in NZ.  They should contribute to the costs of running the country in which they enjoy the benefits of owning property and thereby incur costs.  Why not charge 3-5% of the capital value, rebateable against any other tax paid in NZ?  Come to think of it why not do that with all rental propery also?

I really like the Greens policies of banning everything.  Foreign ownership, mining and drilling, goods made in China.. how about banning McDonald and KFC?  It will be riot in South Auckland..

I'd like to know how you would differentiate between genuine immigrants and foreign owners. Many in Auckland are both. the wife/ children live here and get the free education and the husband works back there in Asia.

With the leadership change, if there is a crackdown on corruption in China, expect many more very rich immigrants coming here in future.

THOSE WITH RESIDENTIAL STATUS ONLY!

Outline rules must be; they must be screened to make sure the money is not ill gotten and their intentions are genuine (to stay and live in NZ).

So, allow me to recap the Kiwi perspective.. And please, correct me if I am wrong!

Al those emmigrants who leave NZ for better oportunities overseas, like Australia, are demonized as ingrates and self-servers who care nothing for their country...

And yet, all those immigrants who are well-off in their countries and decide to leave it for a better country, like NZ, are demonized here for being rich and capable of buying houses with cash, such that their children can live in the country your children are leaving behind for a better one!

Hmmmn... Complex, convoluted idiosyncracies to say the least!!

HGW

Again, NZ or Aotearoa is the land of the long WHITE cloud...

Citizens only. 24 months from permanent residency to citizenship. Initial 12-24 month moratorium on all immigration, from anywhere until supply/demand come back into balance. Existing homes owned by foreigners can only be sold to citizens. Suspension of refugee intake from UN. NZ has done more than its fair share globally since WW2 .(I'd suspend our UN membership too until the Security Council is abolished but that's another issue) Tightening of company registration and foreign trusts. Heavy penalties for local banks found to be accepting laundered money or the proceeds of crime. Caps on corporate, trust or individual ownership of any property to prevent local over accumulation - we don't need a local aristocracy.

things are seriously amiss when i agree with the Greens. It also shows the breadth of the issue when banking CEOs are crying foul about our crazy house prices (maybe Andrew thorburn was outbid on a house recently by an even richer Asian). Whether there is enough supply in Akld or not is a moot point, but we can unquestionably reduce demand for housing in NZ via the following:

- immediate reduction (or moratorium) on immigration for ALL except essential services

- outright ban on purchase of NZ propery by a) non individuals (to forbid trusts/companies etc) and b) non passport holders

- ban neg gearing

- full CGT (and I am happy to throw in the family home here, but accept this is politically unpalatable)

- house included in any means testing (not sure the position in NZ, but in Aus it is excludded from pensions means testing)

- ban covered bonds (provides cheaper credit because it exposes depositors to more risk and by implication the taxpayer)

- 80% LVR ratios (especially when you consider the taxpayer is on the hook for bank failures)

This wont solve ALL alkds problems, but will

1) result in less investors and foreigners jumping ahead of the queue.

2) mean there are sane limits to which buyers can push each other up to - better to have a bidding war with a lower cap when the same person wins out in the end anyway.

These policies are a MUST and need implementing NOW, but dont expect gutless Jon Key to do a thing.

go the greens...finally some common sense in NZ...even if I don't agree with all their policies they are on the button with this one

Factboy - you said it, Greens foreign investmat policy doesn't work. You are a star.

Is there ever a problem that cannot be fixed in the Green world without a new tax being introduced?

Simple solution: introduce a 7.5% stamp duty on purchase for residential property for all non resident buyers including companies with non resident shareholdings over 25%.

That would produce maybe $50-150m in annual tax revenue (not a lot but worth having).   It wouldn't penalise local buyers, and wouldn't greatly affect long term foreign based investors.

A win-win all round.  If the problem persists keep raising the stamp duty.

However, I fear that immigration is actually the main driver of Auckland prices rather than foreign investors.

10 years ago, regional NZ had a problem with Australians snapping up cheap rental properties.  They were responsible for spectacular gains in some centres.  I heard of buyers arriving from Oz and buying 20 properties in one visit.

Xenophobia as a political platform. Proof nothing changes under the sun.

Ihaven't heard of any sellers complaining about who buys their house,and i certainly haven't heard of a real estate agent refusing commision on a house sold to an overseas buyer.

was a national voter..at the moment Im a LABOUR voter!!

I am sure Russel Norman must be following here.

This gives him extra traction to keep the pressure on.

Never voted Greens but this one would swing me over

Something else to consider. Other countries are tightening up their rules regarding foreign ownership. The longer we leave it to sort this the more pressure is going to go on our houses, farms etc.

Get off your hands, Natl, and sort this, as 2 years time is far too long to wait for Labour and the Greens to sort it

Asian-Vasion. Coming to a shopping mall near you (8 November 2012) where do you draw the line.

You want some proof they're not assimilating. They're imposing their values not absorbing ours. Watch this. The video is set in Queensland, in a suburb called Castle Hill. The Shopping Centre is Government owned through the "Queensland Investment Corporation" which is responsible for managing Queensland State Government Superannuation .. one person interviewed calls it the asian-vasion

http://aca.ninemsn.com.au/article.aspx?id=8560691

And Australia has tougher, immigration rules, non-resident property ownership, anti-money-laundering laws in place for 10 years, while nz anti-money-laundering rules have yet to be activated.

Try this for racism

Kiwi called an Aussie Bitch by a Pom - and convicted

http://www.smh.com.au/world/dont-call-me-an-australian-women-guilty-of-racism-over-verbal-attack-on-kiwi-neighbour-20121122-29r2z.html

Coupla administrative points.

Any policy initiative which makes Local Gumnuts collect a tax via rates is gonna be an epic Fail.

Reason is quite simple:  the poor dears can barely keep pace taxing houses, sections, toilets - all of which the precsient common taterate will notice are fairly immobile.  Ask them to tax something a little faster-moving, and watch the log-jams occur.  Basically is the Poll Tax all over again, and look how long That lasted.

Similarly, you cannot tighten ownership rules around companies, trusts and other non-natural persons, without raising the entry price on creating these vehicles in the first place.  Which strikes fairly directly at the heart of entrepreneurship, creative destruction and all those nice capitalist principles.

Oh, wait.  Capitalist Principles.

Given that the Greens are actually watermelons (red inside) - so That's actually the whole Point of this - getting rid of some more CP's in the name of Fixin' Housin'

Silly me...but clearly from the thread, it's bought enough Votes from the Gullible, to fly electorally.....

It's the Land of the Wrong White Crowd.

While it's no surprise some comments here on increasing immigration from China ,are viewed as hysterical zenophobia to outright racism, it should be noted and dicussed as a potential for growing disquiet in those that will be most marginalised by changes in demographics of reasonable magnitude.

Firstly I would point out some naivety on the part of some commentors.

 I had had a long association with Tom Achee( Foodtown founder) and associateed Chinese business enterpreners such as Peter Y..

 Now while Tom and Peter were as NZ as you could get on many levels they still remained founders and members of the auckland Chinese association, an organisation to promote both business and cultural development of Chinese business people and  families alike.

 A coulple of senior Chinese leaders  have commented to me recently, they are uncomfortable with the flow of incoming mainland Chinese, (more descriptive words were used), I asked why , they said they (the incoming) were different, had a different overview of any need to fit in , as there would be enough of them to form communities of their own.

Now I have had Chinese neighbors for 25 years , and I think the world of them as they are just terrific people , but interestingly enough my friends wife speaks almost no english despite being resident for fifty years. Early in our relationship I asked my friend why that was, he told me she spent all her time in the company of her own people and just never felt the need to take the language on. That said she is a little beauty, caring and generous, raised four boys all professionals and one girl also a professional, so, not bad for no English.

 I say the above because I believe there are enclaves of Chinese immigrants , who for reasons of their own feel more comfortable in an environment that allows them the freedom of language and custom, and so it's how it's viewed rather than how it's enacted.

 As to those who should be concerned, it is of course our indigenous peoples who will be marginalised by growing numbers of immigrants who have little understanding of or indeed empathy for the Treaty of Waitangi as a living document, to be considered in all things New Zealand as in the prosperity and protection thereof.

On a more sinister note, tax evasion is of major concern among communities that use cash a the premium chioce of trading, but hey , I guess you'd have to be squeaky to be the first one throwing stones at that window.

 Happy Grounhog day..!

The case for a non-resident property tax is convincingly set out here by Auckland University Professor Manying Ip. Pretty compelling.

Although some buyers might live in their Auckland place, most would regard it purely as an investment. New Zealand has no restrictions on non-residents buying houses.

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10849109