MP: ‘Property market will take a hit’

Posted at 1:51pm Thursday 01 Mar, 2018

Coromandel MP Scott Simpson is concerned the government’s ban on foreign buyers could hurt the Coromandel property market. File photo.

The Coromandel property market will take a hit if government plans to ban foreigners buying residential property goes ahead, says Coromandel MP Scott Simpson.

“There are many overseas nationals who buy holiday homes here. They come and visit for several months each year and then head back to their home country,” he says.

“They have the means to enjoy a lifestyle that follows summers. The properties they buy here tend to be at the top end of the market.

“Labour's plan to change the rules means they will no longer be able to buy. The pool of potential purchasers will reduce and so will property values.”

He says such overseas buyers usually stay here for five or six months of the year.

“They contribute to our local economy. Often they host family and friends from overseas as well. Usually they spend more nights per year here than most of our New Zealand based non-resident ratepayers.”

He says closing off this group of people from buying holiday homes in the Coromandel will do ‘nothing' to improve the housing situation in Auckland, but will have a negative impact locally.

“This is typical of Labour's policies having unexpected and negative consequences. Nothing good will come of their planned changes for us in the Coromandel.

“I'd like our local council to take the same view the Queenstown Lakes District Council has and seek an exemption for the Coromandel from the government's foreign buyers' ban.”

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Where's Wally?

Posted on 01-03-2018 18:11 | By backofthequeue

You'll find him in the Coromandel arguing that wealthy foreigners should take preference over New Zealand citizens. Just goes to show that the National Party have yet to grasp why they now find themselves in opposition. FYI these foreign buyers can still have their holiday homes - they just need to contribute to our society by way of adding to the housing stock.


Posted on 01-03-2018 17:23 | By maildrop

..Maybe the prices will come down and will be bought as first homes for kiwis or holiday homes for kiwis. Presumably the houses won't be knocked down so they will be getting used as homes, by kiwis. Your foreign mates who already own one will still be here if they so wish. It just means their foreign mates can't buy one. They could however rent one for "5 or 6 months" if they think it's so great here. And all the Rent versus Buy analysis over a long period of time has shown that financially there is not much between them. In fact, your foreign mates would be well advised avoid buying now. So in conclusion, there is no problem at all with the policy is there?

The Property Market

Posted on 01-03-2018 15:45 | By Bruja

Has been massively over-inflated CAUSED nearly exclusively by overseas buyers. It started in Auckland and involved uber-wealthy off-shore buyers who paid ridiculous sums of money because they wanted to buy our properties and they had the funds to do so without blinking an eye. Next came Kiwi sellers jumping on the band-wagon, taking their massive gains and either buying 'rentals' (which they then charged out at exhorbitant rates) or leaving Auckland altogether, or both. Then followed Tauranga's insane property prices and other cities have followed . The bottom line? Off-shore owners own a large number of New Zealand property and the property market in NZ is insane, leading to unaffordable housing for purchase and for rent. Result? A few got rich, so many are homeless. The greed and the insanity MUST end. Society's fabric will be torn to shreds with appalling consequences. It has already begun.

Time will tell.

Posted on 01-03-2018 14:12 | By morepork

Absentee landlords are generally not a good thing. Better for the properties to be used full time. Scott may be right on this, but he may not be also. Time will tell.

The Majority

Posted on 01-03-2018 14:10 | By A Thought

The majority of New Zealanders wanted this stopped and the previous government did not mind our land houses and farms being sold off to overseas interests.It is not all about Auckland you know Scott it is about getting kiwi's into homes.After nine years of letting our house prices get out of control this is a bit rich.

Maybe a Hit is not a bad thing?

Posted on 01-03-2018 13:58 | By Gaz

Given the crazy increases past 5 years well above CPI, would it be such a bad thing for property to take a hit, or is a correction the better word?

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