New Zealand Bans Foreign Buyers
Wednesday Aug 15th, 2018Share
Interesting article on Global News about New Zealand banning foreign buyers to make it more affordable for New Zealanders to get onto the property market, and not be priced out of the market by soaring house prices...... sound familiar?
We in Canada introduced measures a while back to try and calm the market. Along with other lending rule changes that sees to have worked. Like New Zealand though there are some areas where foreigners can still get on the market.
Here in Canada they estimated that only 3-4% were from foreign buyers/investors. What they didnt consider though were the numerous homes being bought in their children's name in some of the most exclusive and expensive parts of town. These children had residency rights as many were attending college, circumnavigating the system. Not that that was the root cause, but something that was overlooked and not taken into consideration.
It seems the money lending rules on Canadians were far more stringent, and I think it is this, not the changes in Foreign Investor Taxes that has had such an effect on the market this year.
Personally I would have preferred to see higher taxes put on these Foreign Investors such as an additional Land Transfer Tax like they implemented in Toronto, and higher property taxes as many states do for Foreign Investors. The universities themselves make a killing out of foreign students. These additional taxes could have gone towards assisting first time buyers or those on lower income realise their home ownership dream.
Just my tuppence worth. What do you think?
You can see the article in full here