4 ms·

I think you're correct on the large scale but anecdotally, the first 3 houses I put an offer on were purchased by the same Chinese couple at a price much higher

by xupybd 9y ago

I think you're correct on the large scale but anecdotally, the first 3 houses I put an offer on were purchased by the same Chinese couple at a price much higher than I'd have expected. I stopped putting offers on house when I saw them at the open homes. I have nothing against them they are acting in their own interests and good on them for having the money to buy property. I just can't compete with them and am glad that our government will manipulate the market in favour of people living in the country. I suspect that foreign ownership of land could have a negative impact on our economy as it only extracts money from our economy.

maccard 9y ago
For another anecdote, we were regularly outbid by young couples with large deposits offering way over valuation prices helped by parents gifting them large deposits.
gardnr 9y ago
This is the thing, why does one person need multiple houses when other folks can't afford one house. As someone that hasn't bought their first home, I'd be happy to see a tax on non-primary residences.
- freedomben 9y ago
  This is how we get such a complex tax code that is abused by special interests. It's so easy to say, "go tax that person over there. He can afford it"
  - sitkack 9y ago
    It could be a tax, meaning it is still possible it just costs more. Or could be made outright illegal.
- matwood 9y ago
  In the US this is already pretty common and often known as the homestead exemption. A primary residence gets a much reduced tax rate.
  - njarboe 9y ago
    In California you get $7,000 off the assessed value of your home with the homestead exemption. So ~$70 off your yearly taxes. Must have been much more important value when this was passed into law but almost nothing now on the usual $10,000/yr prop tax bill.
    - seanmcdirmid 9y ago
      I think parentnis referring to the federal income tax deduction on interest, which most definitely is significant if you are able to itemize.
    - matwood 9y ago
      Where I live it’s a straight property tax reduction. In my current house I pay 1500/year in property taxes. If it was not my primary residence the property tax would be between 6k-8k. Instead of changing the assessed value, it lowers the percentage of tax paid on the value.
- xupybd 9y ago
  You can add value by being a good landlord. Some people want to rent. If you provide a service great. But housing is funny as it's seen as such a safe investment and seems to be inflating too quickly.
gnat 9y ago
You were outbid by people who don't look like traditional NZ inhabitants (Māori or European) but that doesn't mean they're foreign purchasers. If they've emigrated to NZ, then they're not foreigners any more, and that couple was just doing what plenty of European New Zealanders I know are doing. Namely, buying a bunch of houses as rentals. (Whether investment properties should be a thing, and whether Capital Gains Tax would curb that, are left to a different discussion)
- xupybd 9y ago
  No, they are foreign nationals. They have a child studying here are and are investing in property while they're over here settling their child in. I agree that once you emigrate they're as much a New Zealander as I. But these people have not. The only problem I have with foreigners buying property here is that they are not in our economy they take any gains out of our economy. It increases the cost of living here without adding value.
  - wolco 9y ago
    But they add cash value because the native seller now has whatever amount extra coming from a different economy. It will raise the prices of homes in the area as well. This will fuel growth.
    - norikki 9y ago
      What no. That's really wrong. Lets say the seller gave the rejected native buyer all the extra profit from the higher price paid by the foreigner. Say it's 10% the price of the home. It would take at least 100% of the home value for the rejected buyer to go build a new home, which is what he would have to do for the foreign sale to not raise home prices. And this is not taking into account the extra roads,power lines, police, fire, water, transportation etc that taxpayers will have to cover for that new home. The alternative of course is that natives just have to live in smaller shittier more expensive homes. Which they shouldn't be forced to do just so that some probably corrupt Chinese business man can launder money through their country.
  - 9y ago

by xupybd 9y ago

maccard 9y ago

For another anecdote, we were regularly outbid by young couples with large deposits offering way over valuation prices helped by parents gifting them large deposits.

gardnr 9y ago

This is the thing, why does one person need multiple houses when other folks can't afford one house. As someone that hasn't bought their first home, I'd be happy to see a tax on non-primary residences.

freedomben 9y ago
This is how we get such a complex tax code that is abused by special interests. It's so easy to say, "go tax that person over there. He can afford it"
- sitkack 9y ago
  It could be a tax, meaning it is still possible it just costs more. Or could be made outright illegal.
matwood 9y ago
In the US this is already pretty common and often known as the homestead exemption. A primary residence gets a much reduced tax rate.
- njarboe 9y ago
  In California you get $7,000 off the assessed value of your home with the homestead exemption. So ~$70 off your yearly taxes. Must have been much more important value when this was passed into law but almost nothing now on the usual $10,000/yr prop tax bill.
  - seanmcdirmid 9y ago
    I think parentnis referring to the federal income tax deduction on interest, which most definitely is significant if you are able to itemize.
  - matwood 9y ago
    Where I live it’s a straight property tax reduction. In my current house I pay 1500/year in property taxes. If it was not my primary residence the property tax would be between 6k-8k. Instead of changing the assessed value, it lowers the percentage of tax paid on the value.
xupybd 9y ago
You can add value by being a good landlord. Some people want to rent. If you provide a service great. But housing is funny as it's seen as such a safe investment and seems to be inflating too quickly.

gnat 9y ago

You were outbid by people who don't look like traditional NZ inhabitants (Māori or European) but that doesn't mean they're foreign purchasers. If they've emigrated to NZ, then they're not foreigners any more, and that couple was just doing what plenty of European New Zealanders I know are doing. Namely, buying a bunch of houses as rentals. (Whether investment properties should be a thing, and whether Capital Gains Tax would curb that, are left to a different discussion)

xupybd 9y ago
No, they are foreign nationals. They have a child studying here are and are investing in property while they're over here settling their child in. I agree that once you emigrate they're as much a New Zealander as I. But these people have not. The only problem I have with foreigners buying property here is that they are not in our economy they take any gains out of our economy. It increases the cost of living here without adding value.
- wolco 9y ago
  But they add cash value because the native seller now has whatever amount extra coming from a different economy. It will raise the prices of homes in the area as well. This will fuel growth.
  - norikki 9y ago
    What no. That's really wrong. Lets say the seller gave the rejected native buyer all the extra profit from the higher price paid by the foreigner. Say it's 10% the price of the home. It would take at least 100% of the home value for the rejected buyer to go build a new home, which is what he would have to do for the foreign sale to not raise home prices. And this is not taking into account the extra roads,power lines, police, fire, water, transportation etc that taxpayers will have to cover for that new home. The alternative of course is that natives just have to live in smaller shittier more expensive homes. Which they shouldn't be forced to do just so that some probably corrupt Chinese business man can launder money through their country.
- 9y ago