This is so good, it deserves its own thread...

[sidinz]

Probably one of the worst / most flawed articles i've seen on the property market.

He starts with a stupid premise where the government forces 10,000 property investors to sell their property. Would never happen in a million years. Then he extrapolates that to even stupider scenarios where renting is illegal.

Then he somehow doubts that landlords buying houses doesnt push up prices??? Does he not understand that an increase in demand = price increase (even if slight)??

Then his great example to back up his nonsense is a stupid example of a painting being compared to a rental property which has no relevance in any way, or can we clearly equate a tax advantage as being of the same value as appreciating something?

And then his argument gets even worse. He argues that foreigners buying houses doesnt push up prices and if they were then there would be thousands of empty houses. So does this mean once again that increased demand for houses does not affect prices and that overseas buyers are so stupid they would buy a house from overseas and not rent it out???

Obviously the herald pay him to make outrageous things, but it's a shame he can't put together a logical argument.

You've misunderstood the whole gist of the article. He was defending property investors.

[speights boy]

You've misunderstood the whole gist of the article.

If what you say is true sidinz; then surely it just supports the argument as to why Contrail thinks:

Probably one of the worst / most flawed articles i've seen on the property market.

[Contrail]

If what you say is true sidinz; then surely it just supports the argument as to why Contrail thinks:

Yes, the point I was making was that what he was saying was blatantly wrong.

I don't really care which side of the debate he falls on, but he should be able to put up a better arguments than that.

You don't need to pay Bob Jones to get him to say outrageous things!

A house purchased by someone overseas doesn't need to be left empty to remove it from the stock for sale - it could be rented out at a very low yield (one that NZ PIs wouldn't be able to accept if they want a mortgage at least) and acheive the same thing.

halfempty - only 4 beds and 2 bath. Slumming it now, are we ?

I don't think whether a house would be made available for sale really matters. As long as it is being used by someone, which 99.5% of houses would be, that is the main thing. Most overseas buyers buy then rent to their kids or someone else. Even if they charge nothing for rent that doesn't affect supply as long as it is housing someone.

The only thing regarding overseas buyers is that they do have a slight impact on house prices just due to more demand / competition.