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posted by mrpg on Thursday August 16 2018, @09:30PM   Printer-friendly
from the green-go-home dept.

New Zealand bans sales of homes to foreigners

New Zealand's parliament has banned many foreigners from buying existing homes in the country - a move aimed at making properties more affordable. The ban only applies to non-residents. Australians and Singaporeans are exempt because of free-trade deals.

New Zealand is facing a housing affordability crisis which has left home ownership out of reach for many. Low interest rates, limited housing stock and immigration have driven up prices in recent years.

[...] [Foreigners] are now banned from purchasing most types of homes - but they will be able to make limited investments in new apartments in large developments.

[...] Chinese investors have been among the biggest and most active offshore buyers of property in the New Zealand market. Also, some wealthy Americans - like Silicon Valley tech billionaire Peter Thiel - have become New Zealand citizens or have bought property in the country. Average prices in New Zealand have risen more than 60% in the past 10 years, while in Auckland - the country's largest city - they have almost doubled.


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  • (Score: 0) by Anonymous Coward on Friday August 17 2018, @12:47AM

    by Anonymous Coward on Friday August 17 2018, @12:47AM (#722619)

    Good link but rent controls and subsidies are not the same thing, both are disastrous but for different reasons. One of the key differences is opportunity cost, with subsidies the money government pays in subsidy to private landlords could have been spent by government elsewhere while the landlord gains investment income. Conversely with rent control, the landlord loses investment income. The two are commingled by affordable housing mandates which effectively subsidise the income of the tenant to the benefit of their employer. It's robbing Peter to pay Paul on behalf of Philip (who lobbies the hardest).