13 MAY 2015

Missing the Point on Runaway Housing Market

The Reserve Bank’s tinkering avoids critical issues of the runaway Auckland housing market, says New Zealand First.

“We are still on a collision course for a financial catastrophe when the bubble bursts,” says New Zealand First Leader Winston Peters.

“It is bewildering that they lurch from one crude option to another.

“The critical problems are immigration and offshore buyers, many of whom are speculators. Foreign buyers have access to cheap loans from overseas, in the 1-2% range, so now they have even more advantage.

“The government can immediately reduce demand by winding back immigration and stopping foreign ownership,” says Mr Peters.

Spokesperson for Housing Denis O’Rourke says New Zealand can learn some lessons with Australia’s tough new measures.

“Mr English said Australians were bringing in prison sentences because they could not enforce the law, and ‘now they are trying to scare the wits out of foreigners who have been getting round the law on a large scale’.

“Australia is at least trying to protect the home buying dreams of its citizens.

“It is clear neither the Reserve Bank actions nor government policies are helping young New Zealanders into their own homes.

“This is yet another example of the government failing to take their plight into account,” says Mr O’Rourke.

ENDS

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