Property investors to blame for NZ's high house prices.....

[jenny_pt]

Property investors are to blame for New Zealand's high house prices, a new research paper published by the Helen Clark Foundation says - see full article here.

Also see the discussion on PropertyTalk.com facebook page.

[Learning]

I'll admit right from the start that I'm not the most intelligent man here but I see a huge problem with that statement.

Investors invest in something to get something in return. Financially, security or even just the feel good factor. And I think most property investors are buying property to make money.

Why is property such a good investment for people who want to make money? Because there isn't enough of it! Supply and demand!

If there were 2 houses for every person there would be no financial property investors as there would be no money to make. Houses would be dirt cheap and you could hardly give them away. But we have the opposite.

Raise the supply or reduce the demand. Build more houses or reduce the population or some combination of the two.

[donna]

Exactly as that's why in Sydney with the oversupply of apartments - the sales prices are low and so too the rents. As you say it's not rocket science and no amount of finger pointing at property investors - will change the outcome. Kiwibuild was never the answer as anyone who can afford a KB home can afford a home on the open market. However developers don't make any $$ out of the entry level homes. They are expected to take all the risk for little reward.

cheers,

Donna

[Jeffa]

Someone may have to correct me but didn't Helen Clark own multiple investment properties when she was an mp or pm?

[Wayne]

Why is property such a good investment for people who want to make money?

The ability to leverage.
(Use other peoples money.)

[annie brookes]

Property investors are to blame for New Zealand's high house prices, a new research paper published by the Helen Clark Foundation says - see full article here.

Also see the discussion on PropertyTalk.com facebook page.

Actually having read the report the term “investors” is being used in a very misleading way. The text carefully crafts the view that the distinction is between first home buyers and investors - which includes existing home owners!!! The appendix shows first home buyers vs everyone else. So if you’ve had a house to live in yourself for 40 years and even no other property you are counted as an “investor”. Also once as a first home buyer you buy your first house - you become an investor.... and by extension a bad person methinks.

Then the media say investors are the cause. its a gross distortion at best and deceitful at worst. Assuming I have read that right.

[Bob Kane]

It's a rubbish report that is deliberately provocative.
There's no need to debate it.
Socialist nonsense - the author doesn't like the price of houses so proposes to crash the property market.
How can that be a good thing?
Calling it deceitful is being kind.

[Perry]

Getting It Wrong - Again.

Wonder what the "windfall gains" are?

Socialists always keep trying, no matter how many times they get it wrong.


Substitute Housing for "the economy." The result's the same.

[McDuck]

Nope!

This whole thing is wrong.

A real investor would invest their own money.

These so called investors are simply redirecting money that's not even their own.

I'd call them "money surfers" rather than property investors.

Nope, the blame for house price inflation (relative to incomes and previous prices) is all down to the subversion of the banking industry.

[donna]

Actually having read the report the term “investors” is being used in a very misleading way. The text carefully crafts the view that the distinction is between first home buyers and investors - which includes existing home owners!!! The appendix shows first home buyers vs everyone else. So if you’ve had a house to live in yourself for 40 years and even no other property you are counted as an “investor”. Also once as a first home buyer you buy your first house - you become an investor.... and by extension a bad person methinks.

Then the media say investors are the cause. its a gross distortion at best and deceitful at worst. Assuming I have read that right.

I found some interesting articles that I have referenced in this article I've written and it just makes sense. Governments have caused the problem by dumping their beneficiaries into the 'public sector' for renting when they rid themselves of what is their responsibility to look after those in need in state housing.

Landlords typically rented to professionals and the tenancies short term. Now we're expected to look after the perennial tenant, on terms that work for state housing not privately owned properties (IMHO).

cheers,

Donna

[chook]

I think this has a lot to do with it..

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12269990

[Perry]

No Brain In Evidence.

A couple of article links to show you just how discombobulated are NZ's click-bait media, single-use-plastic-politicians and pseudo-reality-but-undercover-socialist-academia really are.

We - the people [LLs] - have to wonder why it's so hard for anyone to grasp the difference between:
* no reason;
* no cause;
* no reason supplied.

Here's how the Government could force you to sell your house for state housing
18 Feb 2020

Rental reforms: Landlords slam end to 90-day 'no cause' eviction notices
18 Feb 2020

We are truly surrounded by idiots.

[Chris W]

From 2016

Chinese investors top foreign property investors in Auckland

Nearly 60 per cent of Auckland houses sold to foreign buyers went to Chinese investors, new data show.
The data released by Land Information New Zealand (Linz) yesterday showed that 474 out of 11,955 houses sold between January and March went to non-residents.
Of the sales to foreign buyers, 276 houses went to Chinese residents. The next biggest investors were Australians, with 45 properties.
Across all of New Zealand, 3 per cent of houses sold between January and March went to people who were not New Zealand citizens or holders of a residency, student or work visa.


Chinese tax residents snapped up 321 of those properties (29.5 per cent of non-resident purchases), followed by Australians on 312 properties (28.6 per cent).

https://www.nzherald.co.nz/aucklander/property/news/article.cfm?c_id=1503367&objectid=11637213

[Chris W]

From June 2016

NZ's latest property hotspots

Rotorua, Whakatane and Taupo are three new areas to bask in the glow of Auckland's property boom as investors drive up values. First-home buyers and investors priced out of Auckland, Hamilton and Tauranga have snapped up more affordable homes further south.

In Rotorua, the median house value has jumped 15 per cent annually but is still affordable at $318,000, according to data from QV. QV national spokeswoman Andrea Rush said anything under $400,000 was attractive for buyers priced out of the "golden triangle" between Auckland, Tauranga and Hamilton.

[Chris W]

also extracted from article

"Rotorua is going off right now and the market is hot with prices driven up by investors looking for better yields and first-home buyers priced out of other North Island towns," Rush said.
"It is the increasing trend where investors are becoming more active in Rotorua, Whakatane, Taupo and even Kawerau and that activity drives the market up."