Labour Party Might Restrict Foreign Buyers

The Labour Party is to consider restricting foreign ownership of real estate.

The Party’s Finance Spokesman, David Parker, speaking on TV3’s “The Nation” said the party might follow some overseas examples.

“We’re worried about these issues,” he said.

He said the party wasn’t ready to announce its precise policies.

“But the Greens have come up with one idea which is to introduce stamp duty on foreign purchasers to make it a bit harder for them to advantage in New Zealand. 

“There are other options around but I'm not going to go into that further today.”

Mr Parker made his comment sin the wake of revelations on the progamme that Chinese buyers could source Chinese bank funding secured against Auckland properties at a lower rate of interest than they would pay in New Zealand.

Former Reserve Bank Governor Don Brash said that meant buyers could access money more cheaply than they could from a New Zealand finance company.

“If Chinese banks are making those loans they're presumably taking a currency risk on the New Zealand dollar, or perhaps the buyer is taking a currency risk on the New Zealand dollar<” he said.

“It isn't I suspect a riskless activity for either the bank or the home buyer.”

ENDS

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