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Can you explain what the cause of this sharp rise is? The linked article has nothing on that. It even feels a bit alarming without much depth. And is anything b
by mpol 4y ago
Can you explain what the cause of this sharp rise is? The linked article has nothing on that. It even feels a bit alarming without much depth. And is anything being done?
In the Netherlands, many investors, big and small, are buying up houses to rent out. Airbnb renting was a part of this as well. Many local governments are now creating rules, like, you have to live in the house when you buy it. Also, some taxes for investors have increased a lot. What is happening in the last few months is that less investors have bought houses and more have been bought by people buying their first home. The sharp rise in prices has been more normalized.
Still, there is a shortage of housing and the low interest caused over-bidding by people in a rushed market. The result was that only investors and people which had financial support from their parents could buy houses. Of course somewhat to their own detriment with paying too much and having too big loans.
- berkut 4y agoA lot of demand for housing (both to buy and rent), and in my experience (live in Wellington) a lot of the newer apartments being built seem very much architected with buy to let in mind, so I think renting is a large part of it, along with limited supply. The government did tighten the rules a bit several years ago so that effectively (there are ways around it), you needed to be a resident to buy property, but I don't think that had that much impact (although maybe it would be even worse if that wasn't done?)
- chii 4y agoforeign buyers don't truly make up much of the market - any rules set against them is really just there to win political points imho.
- nikanj 4y agoNew Zealand has built more rules. Maybe they should have built more homes instead.
- zxvvryu 4y agoBank credit creation has inflated prices leaving them relatively untethered from housing supply.
- Negitivefrags 4y agoLow interest rates and not enough building have causd prices to increase, of course, just like anywhere else but there was another factor. For some inexplicable reason they decided to remove the LVR requirements for lending in response to covid. This suddenly caused a huge surge in ability for people to buy houses that were previously not able to.
- dzhiurgis 4y agoAllowing investors to leverage and buy up existing inventory, immigration and low density Another 20% growth and PM wouldn’t be able to afford her house on $470k a year salary
- nsonha 4y agoI'm not a kiwi but I heard until recently, or still, New Zealand either has low or no tax on foreign property investments? If it's true, it's like an open invitation to regional millionaires from a certain country where people can't even legally own properties.
- PickledHotdog 4y agoThere are no significant taxes on housing investment in Australia and infact there are tax concessions to do so ("Negative Gearing") which no government has the guts to repeal because the largest cohort of voters (people 60+) benefit so much from it that to repeal it is political suicide.