New housing rule?

Old Aug 16th 2018, 6:04 am
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Default New housing rule?

Hi,

ive just read that the NZ govt is banning house sales for foreigners... Does anyone know if that affects working migrants especially ones in the Canterbury skills shortage

thanks,
James
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Old Aug 16th 2018, 7:19 am
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Default Re: New housing rule?

the rules apply to existing homes, overseas investors can buy and build new homes, basically not purchase existing stock.
You have to have to be a resident and have had to of lived in NZ for over a year to buy into existing stock
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Old Aug 16th 2018, 8:06 am
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Default Re: New housing rule?

Thanks for that. I think it probably shook a lot of people up when they read the news this morning!
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Old Aug 16th 2018, 8:54 am
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Well at least NZ have solved the homeless problem in one pen stroke. I wonder who they will blame in 5 years time when the problem has got worse.
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Old Aug 16th 2018, 9:58 am
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Default Re: New housing rule?

They're takin' our jobs etc, etc
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Old Aug 16th 2018, 10:33 am
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Default Re: New housing rule?

What happens to all the people that brought their houses in the boom now that the prices are going to go down, won't they end up in negative equity?
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Old Aug 16th 2018, 9:59 pm
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Default Re: New housing rule?

Originally Posted by jim79 View Post
Thanks for that. I think it probably shook a lot of people up when they read the news this morning!
Only if they don't read the news any other morning, one of the Govt's major mistakes but they did signal it well in advance.
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Old Aug 16th 2018, 10:01 pm
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Default Re: New housing rule?

Originally Posted by jim79 View Post
What happens to all the people that brought their houses in the boom now that the prices are going to go down, won't they end up in negative equity?
Umm yes, just like any other bust. Even if they bought at the boom high though, there should be a 20% cushion from the mortgage LVR rules before negative equity hits (which is different to losing the equity you have).
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Old Aug 17th 2018, 7:00 am
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Default Re: New housing rule?

Originally Posted by simonsi View Post
Umm yes, just like any other bust. Even if they bought at the boom high though, there should be a 20% cushion from the mortgage LVR rules before negative equity hits (which is different to losing the equity you have).
I think the LVR rules were a good move by the Reserve Bank to stop the banks from making loans that don't get repaid being secured by property that does not cover the debt.

This country has survived before when one bank collapsed but if they all did at the same time I think there would be trouble.
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Old Aug 17th 2018, 7:40 am
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Default Re: New housing rule?

If you remove foreigners from the property development market in Auckland, nothing would ever get built
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Old Aug 17th 2018, 10:40 am
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Default Re: New housing rule?

That can't be so? Non residents are supposed to make up only 3% of all sales? Allegedly
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Old Aug 17th 2018, 9:51 pm
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Default Re: New housing rule?

Indeed I think anyone who wasn't aware this was imminent must either have been living under a rock for the past two years or otherwise very new or naive to NZ political and economic scene. I would have thought that anyone who was seriously into the 'thinking' about emigrating phase, would have been paying attention to these things and not just looking at pretty pictures. All advise you will hear on this website will strongly recommend new migrants to take a soft start approach and rent for at least six months before committing to buying a place anyway and therefore should be no biggie for people that want to take a fully considered view before committing to buying a place in NZ.

As for a bust I don't think it will come, as many of the other factors that had already been put in place around immigration and investment and such like have already taken a lot of the heat out of the housing market. Most of the perceived 'overseas' buyers from China were either already technically residents or citizens of NZ, hence the 3% comment from Timmy.

The issue remains that house prices still need to take a significant tumble in order for the average working people to afford a home and as ever none of this makes much sense at ll in a country that has an abundance of land, resources and a teensie little population.

Last edited by Bo-Jangles; Aug 17th 2018 at 10:36 pm.
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Old Aug 18th 2018, 9:04 am
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Default Re: New housing rule?

Originally Posted by Timmy Chch View Post
That can't be so? Non residents are supposed to make up only 3% of all sales? Allegedly
Originally Posted by Bo-Jangles View Post
Most of the perceived 'overseas' buyers from China were either already technically residents or citizens of NZ, hence the 3% comment from Timmy.
If anyone actually believes that, they need to pull their heads out from their arses
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