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The Masked Tulip

Auckland, New Zealand: Prepare For The Party To End

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This section seems to apply here,

"First is the Stockholm Syndrome response where the hostage starts to sympathise with the hostage-taker. The homeowner knows they're being forced against their will to stick with the overvalued asset, but they also think any attempts to end the siege only risk harming hostage and kidnapper.

Our political debate over housing affordability has appeared a lot like a hostage crisis lately, often boiling down to: Nobody moves or the home equity gets it!"

I believe that the Autumn Statement will demonstrate the political will to do nothing whilst appearing to care.

Like Auckland the UK's Housing Crisis© will be solved when the public lose confidence.

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One day I will need to buy a house in Auckland, possibly a decade from now when I hope to retire (LOL). I am counting on a Chinese crash causing a Tsunami across the pacific rim that will engulf the NZ market and knock 50% at least off the current ludicrous prices. Ideally this will be accompanied by a huge crash in the NZ dollar.

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One day I will need to buy a house in Auckland, possibly a decade from now when I hope to retire (LOL). I am counting on a Chinese crash causing a Tsunami across the pacific rim that will engulf the NZ market and knock 50% at least off the current ludicrous prices. Ideally this will be accompanied by a huge crash in the NZ dollar.

Short the NZ banks just before your Tsunami?

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New Zealand unlike Australia has no restrictions on foreign ownership of property. The Aussies only allow you to buy non new build homes if you are a citizen or pemanent resident.

Like the UK they are more concerned about foreign investors than their own people. Apart from freezing cold Invercargill on the south island there aren't really many affordable places left - despite all that spare land - and a lot of the housing is poor quality with Poor insulating and heating.

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1 hour ago, MARTINX9 said:

New Zealand unlike Australia has no restrictions on foreign ownership of property. The Aussies only allow you to buy non new build homes if you are a citizen or pemanent resident.

Like the UK they are more concerned about foreign investors than their own people. Apart from freezing cold Invercargill on the south island there aren't really many affordable places left - despite all that spare land - and a lot of the housing is poor quality with Poor insulating and heating.

I wish that was true. The FIRB has approved tens of thousands of purchases of existing property over the past few years: see page 32 of the latest report: https://cdn.tspace.gov.au/uploads/sites/79/2017/04/1516-FIRB-Annual-Report.pdf. China is far and away the largest "investor" in these properties. There are also a huge number of purchases which go undetected due to zero enforcement at the point of purchase (i.e. no confirmation of residency status of buyer when title is transferred). Plenty of very recent permanent or even temporary residents bidding and buying on behalf of unseen people overseas, etc. The schemes are legion and the regulators are absent. I believe they've been deliberately absent as the money was papering over the mining collapse. Only now are they pretending to wake up, so they can pretend to do something about it.

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2 hours ago, TheCountOfNowhere said:

Looks like the party is over everywhere.

 

Prepare for much trouble

Just hope the trouble doesn't come in the form of Chinese Slavery? They have bough so many assets all round the world.

Edited by Fairyland

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1 hour ago, Fairyland said:

Just hope the trouble doesn't come in the form of Chinese Slavery? They have bough so many assets all round the world.

Can't we just one day vote for a party that promises a yearly 50% foreign owners tax, problem solved.

Edited by HovelinHove

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4 hours ago, deep_lurk said:

I wish that was true. The FIRB has approved tens of thousands of purchases of existing property over the past few years: see page 32 of the latest report: https://cdn.tspace.gov.au/uploads/sites/79/2017/04/1516-FIRB-Annual-Report.pdf. China is far and away the largest "investor" in these properties. There are also a huge number of purchases which go undetected due to zero enforcement at the point of purchase (i.e. no confirmation of residency status of buyer when title is transferred). Plenty of very recent permanent or even temporary residents bidding and buying on behalf of unseen people overseas, etc. The schemes are legion and the regulators are absent. I believe they've been deliberately absent as the money was papering over the mining collapse. Only now are they pretending to wake up, so they can pretend to do something about it.

I think Pauline Hanson started making a fuss so the Coalition in Australia had to find a way to respond by pretending to do something. 

 

 

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The Auckland economy is still booming, it seems. Lots of late-model cars. Restaurants and pubs packed out. So many real estate offices. Immigrants flowing into the country (and heading to Auckland) by the droves. Large Chinese enclaves where Mandarin or Cantonese is the language of the street. 

The two housing developments on my street in the last 12 months have both been Chinese managed and crewed. The tenants/owners are Chinese. 

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OOh I am there in Auckland in a short while.  

I'll report back on local sentiment.

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