I think you're correct on the large scale but anecdotally, the first 3 houses I put an offer on were purchased by the same Chinese couple at a price much higher than I'd have expected. I stopped putting offers on house when I saw them at the open homes. I have nothing against them they are acting in their own interests and good on them for having the money to buy property. I just can't compete with them and am glad that our government will manipulate the market in favour of people living in the country. I suspect that foreign ownership of land could have a negative impact on our economy as it only extracts money from our economy.
You were outbid by people who don't look like traditional NZ inhabitants (Māori or European) but that doesn't mean they're foreign purchasers. If they've emigrated to NZ, then they're not foreigners any more, and that couple was just doing what plenty of European New Zealanders I know are doing. Namely, buying a bunch of houses as rentals. (Whether investment properties should be a thing, and whether Capital Gains Tax would curb that, are left to a different discussion)
No, they are foreign nationals. They have a child studying here are and are investing in property while they're over here settling their child in. I agree that once you emigrate they're as much a New Zealander as I. But these people have not.
The only problem I have with foreigners buying property here is that they are not in our economy they take any gains out of our economy. It increases the cost of living here without adding value.
I’m totes down with blocking foreign buyers, for the same reasons as you. I just wanted to note that not every Chinese home buyer is a foreigner. Sounds like you were already aware of that. Awesome!
But they add cash value because the native seller now has whatever amount extra coming from a different economy. It will raise the prices of homes in the area as well. This will fuel growth.
For another anecdote, we were regularly outbid by young couples with large deposits offering way over valuation prices helped by parents gifting them large deposits.
This is the thing, why does one person need multiple houses when other folks can't afford one house. As someone that hasn't bought their first home, I'd be happy to see a tax on non-primary residences.
In California you get $7,000 off the assessed value of your home with the homestead exemption. So ~$70 off your yearly taxes. Must have been much more important value when this was passed into law but almost nothing now on the usual $10,000/yr prop tax bill.
Where I live it’s a straight property tax reduction. In my current house I pay 1500/year in property taxes. If it was not my primary residence the property tax would be between 6k-8k.
Instead of changing the assessed value, it lowers the percentage of tax paid on the value.
You can add value by being a good landlord. Some people want to rent. If you provide a service great. But housing is funny as it's seen as such a safe investment and seems to be inflating too quickly.
