Since the inauguration of Donald Trump, there has been great concern within the business world about new conflicts around the world and the possible re-engineering of society. While this may seem a bit "exaggerated" when you look at New Zealand, you will see some of the world's richest business people buying homes in preparation for a potential apocalypse.
Exceptions to the rule
Before we look at the new Vastgoedmarkt in Zeeland it is worth noting that the ban on foreign investors in New Zealand housing does not apply to those from Australia, Singapore or foreigners with a residence in New Zealand. -Zealand. It seems that the main reason that New Zealand is a place of choice for billionaires around the world is:
• Ability to be self-reliant
• Large plots of land available for purchase – creating private boltholes
• Laws based on the English system
There are serious concerns that hundreds, if not thousands, of billionaires in Silicon Valley have already introduced their plans for a possible apocalypse and collapse of society. While many will mock this development, multibillionaires are willing to take their money where they are. The fact that, after following the results of the US elections in 2016, the traffic to the immigration website of New Zealand increased by 2500%, perhaps says everything?
Home ownership in New Zealand
The percentage of New Zealanders with their own homes has dropped to a 60-year low of 63.2% with official data confirming that 33% of New Zealanders are now in a rented property lives. If you look back to 1991, home ownership was 73.8% and the rent level was 23%, so we have seen a significant change over the last three decades.
If you consider that house prices in New Zealand have risen by 30% in the past five years, it is safe to say that the government should take action. As we have seen in the UK, starters who have been priced for the first time in the housing market are forced to rent privately, which feeds the demand for homes in New Zealand from landlords. This in turn pushes prices further and further beyond the reach of future first-time buyers, increasing dependence on private rental housing, leading to a vicious cycle.
Is this the answer?
There has been a lot of controversy over the past few months that billionaires from around the world have come together in New Zealand as a safe haven & # 39 ;. Many have received a residence permit in New Zealand in exchange for investing large amounts of money in companies in New Zealand. Whether these actions will be reintroduced under new restrictions remains to be seen because money does speak at the end of the day. It was interesting to note, however, that both Australia and Singapore were exempted from foreign investors' prohibitions on homes in New Zealand – would this be a way to get around the ban?
Making a self-fulfilling prophecy
As the news continues to break out regarding the number of billionaires invested in New Zealand homes as a hedge against the potential "apocalypse", this in itself creates a self-fulfilling prophecy . When a number of experts stressed New Zealand as a potential safe haven many years ago, they were often ridiculed, but that is all changing. Will a ban on foreign investment in New Zealand homes affect overseas investments in companies in New Zealand? Will house prices fall to levels that are more affordable for starters? How will existing homeowners talk about a softening market with many who have paid the highest price for their home?
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