The Masked Tulip Posted October 14, 2016 Share Posted October 14, 2016 Apparently the cost of building materials and labour costs have shot up so much that banks are now beginning not to lend money. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11727267 Quote Link to comment Share on other sites More sharing options...
Fairyland Posted October 14, 2016 Share Posted October 14, 2016 46 minutes ago, The Masked Tulip said: Apparently the cost of building materials and labour costs have shot up so much that banks are now beginning not to lend money. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11727267 If banks are not lending then IR hike or property cash may be on it's way. Quote Link to comment Share on other sites More sharing options...
bobbo Posted October 14, 2016 Share Posted October 14, 2016 NZ had a crash in apartment prices in 2005 when people stopped renting undersized units. Could easily happen again. Quote Link to comment Share on other sites More sharing options...
canbuywontbuy Posted October 15, 2016 Share Posted October 15, 2016 It really is amazing that NZ - with its moderate climate and sparse population - has a housing crisis. I know their population is growing but you would think they would help facilitate this expansion through affordable housing. I know someone could say "it's the same problem as the UK, just on a different scale" - but....scale DOES matter. Also, the only "open border" NZ has is with Australia, but I never saw too many Aussies in NZ and I don't think that's comparable to being in the EU at all with the massive disparities of income and costs of living. In other words, the housing crisis in NZ seems utterly contrived. Quote Link to comment Share on other sites More sharing options...
sideysid Posted October 15, 2016 Share Posted October 15, 2016 20 minutes ago, canbuywontbuy said: It really is amazing that NZ - with its moderate climate and sparse population - has a housing crisis. I know their population is growing but you would think they would help facilitate this expansion through affordable housing. I know someone could say "it's the same problem as the UK, just on a different scale" - but....scale DOES matter. Also, the only "open border" NZ has is with Australia, but I never saw too many Aussies in NZ and I don't think that's comparable to being in the EU at all with the massive disparities of income and costs of living. In other words, the housing crisis in NZ seems utterly contrived. Judging by friends who live over there, I would say foreign investment (mainly Chinese) is the cause, buying up everything in the cities, pushing up prices beyond the average wage. Just the same as whats happened in Sydney, Vancouver and London etc. Quote Link to comment Share on other sites More sharing options...
wherebee Posted October 15, 2016 Share Posted October 15, 2016 2 hours ago, sideysid said: Judging by friends who live over there, I would say foreign investment (mainly Chinese) is the cause, buying up everything in the cities, pushing up prices beyond the average wage. Just the same as whats happened in Sydney, Vancouver and London etc. Yup. when a party gets in power on the votes for a policy that brings in a 5% a year asset tax on all non residents, the chinese are gonna BURN. Quote Link to comment Share on other sites More sharing options...
ARIMA Posted October 15, 2016 Share Posted October 15, 2016 3 hours ago, sideysid said: Judging by friends who live over there, I would say foreign investment (mainly Chinese) is the cause, buying up everything in the cities, pushing up prices beyond the average wage. Just the same as whats happened in Sydney, Vancouver and London etc. Yes I've also heard from locals that it is the wall of Chinese 'empty apartment' investment money that's doing it. Quote Link to comment Share on other sites More sharing options...
steve99 Posted October 16, 2016 Share Posted October 16, 2016 21 hours ago, canbuywontbuy said: It really is amazing that NZ - with its moderate climate and sparse population - has a housing crisis. I know their population is growing but you would think they would help facilitate this expansion through affordable housing. I know someone could say "it's the same problem as the UK, just on a different scale" - but....scale DOES matter. Also, the only "open border" NZ has is with Australia, but I never saw too many Aussies in NZ and I don't think that's comparable to being in the EU at all with the massive disparities of income and costs of living. In other words, the housing crisis in NZ seems utterly contrived. Population less than Scotland in a country the size of the UK ie about 7% of the UKs population. House prices are kept artificially high in order to benefit the bankers and the already well off. Land release for building is heavily restricted and is drip fed into the market just as it is in Australia which of course has even more space. Chinese and other foreign speculators are encouraged to turn up and outbid the locals, also in order to keep prices high for the mentioned rich and bankers. Sounds like a world wide phenomena of monkey see, monkey do when all our governments are up to the same tricks.. Traitors the lot of them. Quote Link to comment Share on other sites More sharing options...
bobbo Posted October 16, 2016 Share Posted October 16, 2016 Infrastructure lags behind population growth, so commute times get longer prices on the centre appreciate, dragging up the surrounding areas. Professional wages aren't terrible either so these prices are supported. The mood is changing though. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted October 16, 2016 Share Posted October 16, 2016 When China has its inevitable property crash and financial crisis, NZ will get completely obliterated. 50% drops in Auckland are on the cards I reckon. Quote Link to comment Share on other sites More sharing options...
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