In order to address a housing affordability issue, in one of the world’s hottest housing markets, New Zealand is restricting non-citizens from buying existing homes. Trade Minister David Parker said, “this government believes that New Zealanders should not be outbid by wealthier foreign buyers.”
Sounds like great news for New Zealanders looking to buy a home, particularly if they are a first time buyer.
Of course, for New Zealanders looking to sell their home, too bad.
It is important for investors to recognize that government actions can have a material impact on risk/reward calculations.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA