Chinese Investors spending up big in NZ

[Bobsyouruncle]

Ah I was right!

[Bluekiwi]

The 3% is a red herring, when I was at north shore auctions mid last year about 9 to 9.5 out of 10 houses were being sold to Chinese.
The face of the purchase is an Asian resident of NZ but the money and owner was all mainland china.

[Wellington Broker]

Really? 90-95% of houses sold on the North Shore at auction last year are now owned by Mainland Chinese?

The government data records ownership and that includes trusts. The number of houses being bought by cashed up investors (no mortgage) in Auckland is almost the same as last year, despite sales volumes dropping. These anecdotal claims don't stack up when compared with the LINZ and QV data.

[Bluekiwi]

More people quoting figures who think they know what's going on, I see you are in Wellington is that your excuse to label my on the ground market knowledge anecdotal.
Note I said North Shore, not Auckland, don't try and tell me that down their you can hear the auctioneers speaking Chinese at Bruce Mason and see the 95% of people of Asian decent in the Auction rooms.
You know nothing, mid 2016 it was Chinese owner selling through Chinese agent to Chinese buyer, you didn't even need one person in the deal speaking English and all inquiries were ignored unless you looked and spoke Chinese.

[Davo36]

More people quoting figures who think they know what's going on, I see you are in Wellington is that your excuse to label my on the ground market knowledge anecdotal.
Note I said North Shore, not Auckland, don't try and tell me that down their you can hear the auctioneers speaking Chinese at Bruce Mason and see the 95% of people of Asian decent in the Auction rooms.
You know nothing, mid 2016 it was Chinese owner selling through Chinese agent to Chinese buyer, you didn't even need one person in the deal speaking English and all inquiries were ignored unless you looked and spoke Chinese.

You're not supposed to say this BK, ssshhhhh.

[Davo36]

How about a source saying that trusts are excluded from the new data? (They're not)

Are you very sure of this?

No one's memory is perfect, including mine, but I do remember hearing when the figures came out, that trusts weren't included. Maybe it's foreign trusts I'm thinking of? Especially ones with NZ trustees?

Did a bit of digging, found this :

"It also excludes trusts and businesses. A further 45 per cent of the Auckland sales were also excluded because of exemptions for those buying family homes and those who signed contracts before the law came in."

here

And this:

“To help find out more about property in New Zealand, buyers and sellers are also asked to provide information about their citizenship or visa status. This information has been skewed by the responses from trust companies and businesses.”

From here


And this:

Trust companies and businesses - which represent more than 10 percent of total sales - have been removed from the data because identifying the citizenship status or residency status of the people behind them proved too hard.

from here

[Bluekiwi]

I was pretty sure the provision of details about who you the buyer are, is actually optional, and no one is going to provide info they don't have to.
From my experience its not trusts buying and selling but one or two long names that sound like metal clashing.
I once had a Zhou a Zhang and a Zhing bid my accepted pre auction offer from 750k to 886k, I wasn't at the auction and got a real surprise when my agent told me he got a little bit more for me.

Plus how would they even understand the request to provide such information when they don't speak or understand English ???

[Wellington Broker]

Are you very sure of this?

No one's memory is perfect, including mine, but I do remember hearing when the figures came out, that trusts weren't included. Maybe it's foreign trusts I'm thinking of? Especially ones with NZ trustees?

Did a bit of digging, found this :



here

And this:



From here


And this:



from here

I was referring to the most recent data published a month ago. Not the figures from May last year

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11867735

Until now, the statistics have been based solely on tax residency, and have consistently shown that around 3 per cent of houses were sold to offshore tax residents.
That data was criticised as "dodgy" by Labour because it excluded people on student or work visas.
LINZ said that in the latest quarter, it was able to determine whether a buyer was a NZ resident or citizen in 87 per cent of 41,919 house sales.
It said 82 per cent of house transfers involved one or more buyers with NZ citizenship or residency. It was not known what portion of these houses was owned by local or offshore buyers.
Around 2 per cent of transfers involved no buyer with NZ citizenship or residency, though some of them had student or work visas.
And 16 per cent of transfers involved businesses or corporate entities.
"For almost all of these corporate/business entities all parties were New Zealand tax residents," LINZ said.

http://www.linz.govt.nz/news/2017-06/linz-releases-latest-property-data

Tax residency of buyers and sellers

Covering January to March 2017, the report shows 3 percent of all property transfers involved overseas tax resident buyers and 3 percent involved tax resident sellers. This compares to 2 percent tax resident buyers and 3 percent tax resident sellers in the last quarter of 2016.
Of the remaining transfers over January-March:

• 57 percent of transfers involved buyers who have only New Zealand tax residency. For the October to December 2016 quarter this was similar at 58 percent.
• 40 percent involved buyers who did not need to provide tax information – the majority of these were New Zealand citizens or residents who are buying their main home. This was the same in October to December 2016.

[Davo36]

Oh well, maybe the data is correct now. Seems pretty unequivocal.

Not sure why foreign investment is reportedly much higher in other countries (Aussie, Canada etc.) but not here.

[Nick G]

Probably to do with lending.

[Davo36]

Probably to do with lending.

You mean easier lending overseas?

[sidinz]

I was referring to the most recent data published a month ago. Not the figures from May last year

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11867735

Until now, the statistics have been based solely on tax residency, and have consistently shown that around 3 per cent of houses were sold to offshore tax residents.
That data was criticised as "dodgy" by Labour because it excluded people on student or work visas.
LINZ said that in the latest quarter, it was able to determine whether a buyer was a NZ resident or citizen in 87 per cent of 41,919 house sales.
It said 82 per cent of house transfers involved one or more buyers with NZ citizenship or residency. It was not known what portion of these houses was owned by local or offshore buyers.
Around 2 per cent of transfers involved no buyer with NZ citizenship or residency, though some of them had student or work visas.
And 16 per cent of transfers involved businesses or corporate entities.
"For almost all of these corporate/business entities all parties were New Zealand tax residents," LINZ said.

http://www.linz.govt.nz/news/2017-06/linz-releases-latest-property-data

Tax residency of buyers and sellers

Covering January to March 2017, the report shows 3 percent of all property transfers involved overseas tax resident buyers and 3 percent involved tax resident sellers. This compares to 2 percent tax resident buyers and 3 percent tax resident sellers in the last quarter of 2016.
Of the remaining transfers over January-March:

• 57 percent of transfers involved buyers who have only New Zealand tax residency. For the October to December 2016 quarter this was similar at 58 percent.
• 40 percent involved buyers who did not need to provide tax information – the majority of these were New Zealand citizens or residents who are buying their main home. This was the same in October to December 2016.

Lot of stories around about frontmen. Where there's smoke.......?

[watchful]

Gotta have the cash flow to get yourself out of any situation you are in. If not change the situation you are in. Don't want to flood the market but selling -ve geared is best. Hope u made money when/if you are able to sell. Don't buy from property investment companies/finder companies as they are likely panic selling to meet their cash flow nwedsand selling their lemons.

[Nick G]

Well PF companies are agents mate, we (at least) don't carry stock. Others might tho.

It is a good idea to sell any property you don't want to hold going forward.

[Davo36]

Saw this today http://deadline.com/2017/07/chinese-...ls-1202129913/

And so I wondered, why is China stopping money from flowing out?

Never really stopped to ask the question why?