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  1. #1

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

    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.
    Last edited by donna; 18-02-2020 at 11:05 AM.

  2. #2
    Join Date
    Jan 2012
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    1,142

    Default

    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.

  3. #3
    Join Date
    Aug 2003
    Posts
    7,869

    Default

    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
    PropertyTalk Blog - property articles - About PropertyTalk

    BusinessBlogs - the best business articles are found here



  4. #4
    Join Date
    Mar 2016
    Posts
    491

    Default

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

  5. #5
    Join Date
    Jun 2004
    Posts
    10,631

    Default

    Quote Originally Posted by Learning View Post
    Why is property such a good investment for people who want to make money?
    The ability to leverage.
    (Use other peoples money.)

  6. #6

    Default

    Quote Originally Posted by jenny_pt View Post
    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.

  7. #7
    Join Date
    May 2008
    Posts
    3,691

    Default

    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.

  8. #8
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,487

    Default 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.
    Last edited by Perry; 18-02-2020 at 05:04 AM.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  9. #9
    Join Date
    Apr 2005
    Posts
    2,943

    Default

    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.
    Last edited by McDuck; 18-02-2020 at 07:09 AM.

  10. #10
    Join Date
    Aug 2003
    Posts
    7,869

    Default

    Quote Originally Posted by annie brookes View Post
    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
    PropertyTalk Blog - property articles - About PropertyTalk

    BusinessBlogs - the best business articles are found here




 

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