New Zealand has banned foreign ownership of homes to ease the housing affordability crisis in the country. Silicon Valley’s billionaires had planned to escape to New Zealand after the upcoming collapse of the USA.
But as most country’s have experienced, foreign real estate investments lead to raising homes prices, which basically impoverishes a nations welfare.
However, in the IMF’s In annual report, the Zionist institution criticized the measure, claiming that “foreign buyers seem to have played a minor role in New Zealand’s residential real estate market recently.”
Home prices in New Zealand have risen dramatically by around 60% since the financial crisis. The increase came as a result of a combination of factors, including limited supply, low interest rates fueling a boom in borrowing, and foreign speculation.
Under the Overseas Investment Act which was proposed last year, the government in Auckland plans to slash immigration and focus on regional development and job creation.
If the act becomes law, it will bring New Zealand into line with neighboring Australia.
The law would classify residential land as “sensitive,” which means non-residents or non-citizens can’t purchase existing dwellings without the consent of the Overseas Investment Office.
Non-resident foreigners will be allowed to invest in new construction but they will be forced to sell once the homes are built.
IMF Mission Chief Thomas Helbling said a ban is a “very definitive measure” and could send a negative signal to foreign investors more broadly.
Selling the land is also a sensitive issue for Australia due to concerns that foreign investors are buying up properties to meet the growing food demand in Asia.
Last year, the Australian government blocked the purchase by a Chinese-led consortium of 11 million hectares belonging to the country’s largest private landowner.
RT.com / ABC Flash Point Real Estate News 2018.