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New Zealand did that years ago. It did nothing for price increases but at least it shut up some of the populist screeching. Price increases seem to have finally

New Zealand did that years ago. It did nothing for price increases but at least it shut up some of the populist screeching. Price increases seem to have finally stopped and you know how? The government tightened the lending rules so regular first home buyers and owner-occupiers can't get such a big loan anymore. Those people were the problem all along but nobody wanted to blame them. They were supposed to be the victims.

philliphaydon 5y ago
Because there’s no reason for prices to drop yet. There’s 3 issues. Foreigners buying houses. Locals buying multiple properties. And supply. 1 of those issues is resolved. The government promised 10k houses. It’s done something like 500? There’s no houses on the cheap for people to buy to push prices down. But many people trying to buy and rent that sellers and landlords are upping prices. Atleast locals will haggle a price. The foreigners buying were paying above market prices despite never setting foot in the country.
- sacrosancty 5y ago
  No, it really was locals buying a house. Of course there are now more locals than before, and I think our lifestyle has us less willing to share houses, and construction and relaxed zoning lagged, but it's still locals pushing up prices. If we weren't so obsessed with having our own little castle, we would buy apartments or rent instead. Everyone does still live somewhere, it's just often not as luxury as they desire so they want to pay more for more luxury. No cheap houses to push prices down? That doesn't make sense. Prices are falling now, so houses are getting cheaper.
phkahler 5y ago
>> The government tightened the lending rules so regular first home buyers and owner-occupiers can't get such a big loan anymore. Agree, but don't single out first time buyers. Easy money is what causes the prices to rise regardless of who is buying. In the US lower interest rates lead to tons of ads for refinancing, and some people refi AND take out some cash to spend. Home prices vary inversely to interest rates.
bscphil 5y ago
> The government tightened the lending rules so regular first home buyers and owner-occupiers can't get such a big loan anymore. I know nothing about the situation in New Zealand, but taking what you say at face value, they are the victims. It's just that now, as opposed to bidding high on houses they could barely afford, they can't afford to enter the market at all. So things are even worse for them.
- deleted 5y ago
  [deleted]

philliphaydon 5y ago

Because there’s no reason for prices to drop yet. There’s 3 issues. Foreigners buying houses. Locals buying multiple properties. And supply. 1 of those issues is resolved. The government promised 10k houses. It’s done something like 500? There’s no houses on the cheap for people to buy to push prices down. But many people trying to buy and rent that sellers and landlords are upping prices. Atleast locals will haggle a price. The foreigners buying were paying above market prices despite never setting foot in the country.

sacrosancty 5y ago
No, it really was locals buying a house. Of course there are now more locals than before, and I think our lifestyle has us less willing to share houses, and construction and relaxed zoning lagged, but it's still locals pushing up prices. If we weren't so obsessed with having our own little castle, we would buy apartments or rent instead. Everyone does still live somewhere, it's just often not as luxury as they desire so they want to pay more for more luxury. No cheap houses to push prices down? That doesn't make sense. Prices are falling now, so houses are getting cheaper.

phkahler 5y ago

>> The government tightened the lending rules so regular first home buyers and owner-occupiers can't get such a big loan anymore. Agree, but don't single out first time buyers. Easy money is what causes the prices to rise regardless of who is buying. In the US lower interest rates lead to tons of ads for refinancing, and some people refi AND take out some cash to spend. Home prices vary inversely to interest rates.

bscphil 5y ago

> The government tightened the lending rules so regular first home buyers and owner-occupiers can't get such a big loan anymore. I know nothing about the situation in New Zealand, but taking what you say at face value, they are the victims. It's just that now, as opposed to bidding high on houses they could barely afford, they can't afford to enter the market at all. So things are even worse for them.

deleted 5y ago
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