Wednesday, February 28, 2018

Foreign buyer ban to reduce housing stock

From Granny:
A proposed law change would ban multi-billion dollar retirement giants Ryman Healthcare and Metlifecare from buying any further New Zealand land without state consent, sparking an outcry from the NZX-listed businesses.

The heads of companies with significant foreign ownership sent strongly-worded submissions to the Finance and Expenditure Select Committee, pleading not to be stopped from buying further land here to expand without Overseas Investment Office approval each time.

But on this week's controversial 60 Minutes interview with Prime Minister Jacinda Adern, she reiterated ban plans, saying the Government would stop foreigners by simply saying no.
 A ridiculously dogmatic and dangerous policy response.

The retirement village sector meets a growing demand.  We need more villages, as we have an aging population.  Making it more difficult to purchase residential land to build villages will lead to a shortage of housing supply for the elderly and infirm, and push up prices, further locking out of the market middle income earners who want that retirement option.

But it also will lead to one further, and vital, outcome: Each time an elderly person or couple move into a retirerment village unit, they sell their existing family home.  This increases the availability of houses to be bought by mum and dad and first home buyers. 

In short, it increases the supply of housing.

It seems Labour, Ardern and Twitford are determined to achieve the opposite.  Everything they have done so far on housing will produce the complete opposite result to their desired one.  The sad thing is they can't see it.

18 comments:

Gerald said...

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11880947

Anonymous said...

Gerald......you beat me to it. Retirement villages, like mobile home parks come with a whole host of conditions that benefit the corporation not the the buyer.

People are not aware, that retirement properties don’t behave like ordinary houses or flats; they have their own rules. There are many traps for the unwary. Sebastian O’Kelly, a former property journalist who now runs the charity Carlex (Campaign Against Retirement Leasehold Exploitation) doesn’t mince his words when he says that buying in a retirement complex may be "the single worst financial investment you ever make".

“It is a housing sector with a justifiably awful reputation," he adds. "So far there have been two Office of Fair Trading inquiries, numerous court cases and parliamentary debates – and the sector still is not right."

Once again we are seeing big money steamrollering society. If we have to rely on overseas finance to look after our elderly then we have failed as a society , even our funeral homes are owned by the USA only there it is called the funeral industry.

Lord Egbut

Nick K said...

You overlook one vital, and extremely important, point: Elderly people make an informed choice to live this way. They know the financial implications. I explain them to them every day. I repeat: It is their choice. I have worked in this area for 15 years and have “put” hundreds of clients into these homes. I have had one complaint case, and only one instance where the client decided they didn’t like it and moved out and back home. That’s a percentage of about .33% or point three of one percent.

You’re on the wrong side of this one.

Anonymous said...

"Elderly people" of which some portions of society would say I am one including my grandchildren come from a generation of trust and are easy targets for unscrupulous salesmen. They have had no financial education unlike today generation, to accept your figures of which you have vested interest would be foolhardy in the extreme.

Just let me drive the point home........if, as a country, we need to rely on American corporations to house our elderly at huge profit to themselves, then we, as a self governing country have failed.

Lord Egbut Nobacon

Anonymous said...

Pretending to be clever is not the same as actually being clever. Today's generation are the most financially illiterate ever. One of the step daughters (unemployed but probably not for long with an unemployed bogan boyfriend) has told us we can't sell our house (a sale will be years away) because she wants it. She keeps on texting listings of houses she would like us to buy for her and useless to rent to buy (with no money). Deluded and stupid, nay, pig ignorant. Goodness knows where she picked up this bollocks from but it seems deeply rooted which is how her life will pan out if she doesn't get off her arse. Her older sister is slowly overcoming this nonsense with a great new job where she's making good money and likes the smell of it but within the circle of snowflake friends they have such arrogance is common.

3:16

Anonymous said...

3:16...I feel for you but this is not forum for personal family problems.

Lord Egbut

The Veteran said...

Gueez wept ... xenophobic crap rules OK. The retirement industry in NZL is big and offers a lifestyle to which many elderly couples aspire and, without belaboring the point, the vast majority of those who choose to relocate into retirement villages tend to be be the sort of people who take proper legal advice, weigh up the pros and cons and make informed decisions.

The oft touted downside is that the ORA doesn't provide for the owner to receive any capital gain when they vacate the property. With respect ... you don't go into a retirement village to make a capital gain. You are buying a lifestyle and nothing much more.

Nick K is 100% right and the Labour government has lost the plot on this one.

Look and reflect on Egbut's last point. Today retirement villages .... tomorrow foreign owned Hotel chains and the day after .......

pdm said...

Egbut your 9.52 is trolling at its worst.

This is not your blog or post and if 3.16 wants to air personal issues it is his prerogative to do so subject to NickK's consent as the host.

David said...

Egbut, leave 3:16 alone. his post amply demonstrates his lack of (step)parenting skills and the usual WWJD apathy we know and love.

David said...

Gueez wept ... xenophobic crap rules OK. The retirement industry in NZL is big and offers a lifestyle to which many elderly couples aspire and, without belaboring the point, the vast majority of those who choose to relocate into retirement villages tend to be be the sort of people who take proper legal advice, weigh up the pros and cons and make informed decisions.

How well did that work out for the Kate Sheppard retirees post Christchurch earthquake. Lance Bunting walked away with the insurance payouts, residents left high and dry.

Adolf Fiinkensein said...

Once again, Ledgut is 'on the wrong side' of the issue. He makes a habit of being on the wrong side.

For twelve years I served as a trustee for a retirement village run by a charity. For Ledgut's information, people were queuing up to get in and, to my knowledge, still are.

david said...

Argumentum ad populum Adolf, is no argument at all.

People queued up to join David Koresh, Jonesville, the SS, The Stazi, etc.

The Veteran said...

David ... you are talking about the ChCh earthquake and since then the law has changed to prevent what happened happening again. But this has nothing to do with the substance of the post and Lance Bunting is a ChCh businessman ... not a foreigner.

See you are following 101.1 in the disassemblers handbook.

Anonymous said...

@David 12:12

Yes the KS residents were shafted, but it happened due to a totally unforeseen event where the consequences weren't covered at the time in the then rules governing retirement village regulations. This anomaly has now been corrected.

Did Ardern publicly ask Bunting to consider the moral 'right' thing to do at the time? He may have outsmarted the lawyers then, but will never be able to own such a business in NZ again (for lack of gullible takers - once bitten ...).

MarcW

Adolf Fiinkensein said...

David, I didn't see many people queuing up to join your communist party.

Anonymous said...

Troll DLT....Is your retirement home like your non existent lawnmower at your non existent house and non existent RAAF passing out parades with non existent cadets receiving non existent pilots licenses at age 15. Or perhaps it is like your non existent golfless walks around a certain Bunbury golf course where it is PLAYERS ONLY.


Lord Egbut

Anonymous said...

pdm.....unusually you are right. However if Nick K wishes to give me a rollocking I will accept it with good grace but it's not your place or your blog to pre-empt him.

Lord Egbut

Nick K said...

Nah, I’ll hardly ever delete comments here. Only in the event of death threats or defamation will I consider that. I firmly believe the answer to free speech you don’t agree with is more free speech.