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New Zealand To Foreigners - Get Out!

Authored by Martin Armstrong via ArmstrongEconomics.com,

The New Zealand Prime Minister that took the country back into Marxism, has fired its first shot across the bow. 

Thirty-seven-year-old Jacinda Ardern, a member of the New Zealand Labour Party, became the world’s youngest female leader. Hillary must be crying in her martini.

The Labour party have formally signed a coalition agreement, introducing all new policies focusing on climate change, regional development, and poverty which translates into hunting the hated rich.

Nevertheless, PM Ardern has just fired the first shot across the bow and this is a serious warning that foreign investment better cross New Zealand off the list of places that will be up-and-coming.

She has banned foreigners from buying property in New Zealand.

As The BBC reports, the rise in New Zealand house prices over recent years has been fuelled by strong immigration, low interest rates and limited housing supplies.

House price growth in the country, home to about 4.6 million people, has moderated over the past year, but remains among the highest in the world.

 

A recent survey by property consultants Knight Frank found annual house price growth in New Zealand was 10.4%, pushing it from 3rd to 10th place in the ranking of 55 housing markets.

 

Prices in the capital, Wellington, rose 18.1% in the year to June 2017. Residential prices in Auckland, the country's largest city, rose 9.8% over the same period.

 

The median price for residential property in Auckland is $845,000 ($582,662; £443,554), according to data from the Real Estate Institute of New Zealand.

The first proposal was to ban any migration to New Zealand as well. That they had to back off of given the refugee impression and that would have agreed with Trump – OMG!

"We have agreed on banning the purchase of existing homes by foreign buyers," Ms Ardern said on Tuesday, while also announcing plans to slash immigration and focus on job creation.

She thinks banned foreign property ownership will cool off the property market. The problem will be, a property crash. When home values decline, people feel they lost money and they spend less.

With rising property values, people feel they are better-off and spend more assuming they have equity even if they do not borrow against it.

She may be the youngest female leader in the world, but she also is clueless about economics.