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  • #61
    That 'property investor hate' will have a silver lining. As available rentals decrease and compliance costs increase, rents will rise. Meanwhile as new rules come down the pike, including related to negative net rents, only essential maintenance will be done and tenant selection will get very picky. Demand for social housing will increase. In theory that will suit a socialist government very well. In practice keeping up with demand will be close to impossible even with money chucked at it.

    Already vacancies are decreasing in many locations. Down 65% in Wellington for the year ended April 2017 according to Trademe stats.

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    • #62
      I found @Bluekiwi's post regarding the USA enlightening. Who would have thought that a property such as the one he linked to in his post could be bought so cheaply. I expect the process to buy is fraught with difficulty for the naive but very interesting.

      But then I do often compare my house (bought in Bishopdale Ch-ch in late 2015 for $480k) with my Australian friend's house (bought in Newcastle NSW also in late 2015 for AUD$500k). While my house is quite nice, it's a pretty plain 1960's design and it doesn't compare to my friend's one which has an extra bedroom, fantastic covered outdoor area, extensive landscaping, an in-ground swimming pool, is a block from Lake Macquarie, and is in immaculate condition. I have other friends on the Gold Coast who have recently built a pretty grand house (compared to mine) for around the AU$450k mark. Just based on these two first hand examples, I sometimes feel like I didn't get a lot for my money...

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      • #63
        Originally posted by Nick G View Post
        They could probably use some foreign capital invested to be fair.
        And that the Philippines does need. Investment in business and infrastructure

        Thinking about my own situation the corrupt and useless telcos / internet providers and the restrictions on foreign ownership of businesses are a far greater disincentive to staying here.

        Meh, if we wanted to buy a property it could simply go in my Filipino wife's name, as all the other married property owner expats do. The unattached expats either buy a condo (apartment) or use a lawyer to hold it.
        Last edited by PTWhatAGreatForum; 01-11-2017, 03:16 PM.

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        • #64
          Originally posted by Aston View Post
          The outcome of the above example would be the same regardless of whether the property was owned by an overseas investor or a local investor.

          I totally support what Jacinda Ardern has done with regard to overseas investors. She has done, in one week, what the National Government said was impossible. Unfortunately though there are now tens of thousands of our houses in the hands of these overseas buyers. Over the past few years these investors have been partially responsible for pushing our houses beyond the reach of many New Zealanders. Why should New Zealanders have to compete with overseas investors, with very deep pockets, to buy our own houses? I am certainly a lot more comfortable in the knowledge that there will now be a lot less of our houses being sold to overseas investors.

          One question I still have though… Does buying a property, house or apartment, off the plans constitute a new build?
          Foreigners have not been able to buy existing houses in Aus for many many years - can't recall when the rule was introduced. This has not halted the price appreciation of houses there - why would it be any different here?

          Like labours strategy here Aus allows foreign ownership of new properties, this has resulted in a huge number of towers being built that are exclusively very small studio and 1br appts designed for and sold to foreigners - none of these are suitable for families to live in so it hasn't worked as intended.

          But why not follow Aus with a policy that didn't meet the objective.

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          • #65
            Originally posted by Don't believe the Hype View Post
            But why not follow Aus with a policy that didn't meet the objective.
            Some of these things (the ban) are to 'fix' fundamentals rather than specific issues.
            Wait till the tax working group recommend a CGT tax again. Lots of moans that it won't fix anything (which it won't) but does change another fundamental (which is why the tax working groups keep recommending it).

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            • #66
              Does buying a property, house or apartment, off the plans constitute a new build?

              Yes it does
              Free online Property Investment Course from iFindProperty, a residential investment property agency.

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              • #67
                Originally posted by Nick G View Post
                Yes it does
                And so it should. If people didn't buy off the plan, the developments wouldn't happen.

                So much worth replying to in this thread today, but no time to do it. Keep up the discussion! Great things being raised.
                AAT Accounting Services - Property Specialist - [email protected]
                Fixed price fees and quick knowledgeable service for property investors & traders!

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                • #68
                  Originally posted by MichaelNZ View Post
                  And that [Foreign Investment] the Philippines does need. Investment in business and infrastructure
                  I disagree with foreign ownership of land, in general terms. But you can't argue it doesn't bring money into the country.

                  While the end result (foreigners owning significant swathes of a country) is negative, the process undergone to get there (foreigners injecting large amounts of capital into the country, paid to residents and citizens) is very good for a country in need of investment - those citizens then spend much of that money on consumption and business/infrastructure investment.
                  AAT Accounting Services - Property Specialist - [email protected]
                  Fixed price fees and quick knowledgeable service for property investors & traders!

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                  • #69
                    Originally posted by Anthonyacat View Post
                    While the end result (foreigners owning significant swathes of a country) is negative, the process undergone to get there (foreigners injecting large amounts of capital into the country, paid to residents and citizens) is very good for a country in need of investment - those citizens then spend much of that money on consumption and business/infrastructure investment.
                    Or those citizens borrow a little more from a foreign bank in order to top the amount now needed to buy another local property, freshly inflated due to foreign demand...

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                    • #70
                      Originally posted by WINZ View Post
                      The only win/win (for NZ) would be if foreign speculators paid excessive amounts for local properties, the market corrected and then they sold at a lower price, however this would lead to significant collateral damage and its questionable if a country should be promoting this as their housing/economic strategy.
                      That's how market forces work - sounds good to me!
                      The offshore investors are doing it for a reason and I'm happy to accept their money.
                      They may not be around in 10 years time but the land and houses will be.

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                      • #71
                        Generally most of these "bans" are pretty leaky, so many loopholes that they fairly easy to circumvent.
                        However, they do provide a stimulus to the local economy, with the lawyers and accountants making heaps out of creating and working the evasions.

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                        • #72
                          Originally posted by Wayne View Post
                          Some of these things (the ban) are to 'fix' fundamentals rather than specific issues.
                          Wait till the tax working group recommend a CGT tax again. Lots of moans that it won't fix anything (which it won't) but does change another fundamental (which is why the tax working groups keep recommending it).
                          If the expert working group recommends a CGT, then if the members really are expert the recommendation will be broadly based. If the terms of reference start out with politically motivated restrictions, eg family homes, the experts will be only 'so-called-experts' and if true to their values will decline the appointment to maintain professional integrity. Some hope.

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                          • #73
                            If the experts recommend a capital gains tax then surely they are then accepting the other side of that coin that a deduction can be made against a capital loss.

                            If we are a peak prices (as many of these experts are claiming) then when their predicted crash comes, as prices fall and losses are made the IRD will be footing a large chunk of the loss.

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                            • #74
                              Originally posted by Don't believe the Hype View Post
                              If the experts recommend a capital gains tax then surely they are then accepting the other side of that coin that a deduction can be made against a capital loss.

                              If we are a peak prices (as many of these experts are claiming) then when their predicted crash comes, as prices fall and losses are made the IRD will be footing a large chunk of the loss.
                              Yes and thats why smart labour policy decision will be long dating " Cap gain TAX " or having loop holes so tax losses can't be claimed for sometime etc

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                              • #75
                                Originally posted by JBM View Post
                                smart labour policy
                                And this is where your statement deviated from reality

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