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How will it help New Zealanders if they just invest in real estate? Seems like a good speculative bet for them, but mostly it just makes it more difficult for y
by screenbreakout 5y ago
How will it help New Zealanders if they just invest in real estate? Seems like a good speculative bet for them, but mostly it just makes it more difficult for young people to get afoot in the property market....
- q1w2 5y agoHigher asset prices makes building property more profitable. It incentivizes more construction. This is how the free market works, in general. When prices go up, it incentivizes asset creators create more. This is one of the down-sides of zoning limitations - they do not let the market provide more for the additional demand. ...and a simple Google search confirms that NZ has been experiencing a construction boom.
- dzhiurgis 5y agoReal estate is far from free market. Tons of regulation effectively makes it regulatory capture.
- tjpnz 5y ago>...and a simple Google search confirms that NZ has been experiencing a construction boom. The kind of houses which locals are priced out of due to low wage economy. Certainly good for wealthy immigrants and cashed up Kiwis returning from overseas though.