New Zealand: Mega Rich Bolt Hole Bans Foreigners From Buying Existing Property!

Over the last 6 months, we have advised clients to get out of NZ, because it was the last country where Chinese (and all foreigners) were still not paying taxes on buying property.

Fast forward to Aug 2018, New Zealand is going to ban foreigners from buying existing real estate in NZ.

Just like Australia, Canada, Singapore, UK, Dubai and many others have done in the years gone by and have put taxes to buy property on foreigners only.

In every single city/country that has started taxes on foreign buyers, there is a concept of high prices, then sudden moves by politicians and then the price and transactions collapse.

It works like a charm, every single time. 

Except that this will be worse in NZ because this will be an outright ban.

Already prices are high and then taxes begin, leading to lack of buyers and more sellers, and anyone who knows a bit about economis will tell you when supply is greater than demand, prices must fall.

Get ready, NZ property prices are going to see a very rapid correction.

Watch the video of NZ's PM yesterday.

New Zealand Prime Minister announces foreign home buyer ban

Apocalypse NO! New Zealand is set to ban foreigners buying homes after super-rich trend of creating luxury doomsday bunkers pushes property prices up

NZD is already careening downwards, peaked at 0.88 in July 2011 and then 0.88 in July 2014 and now today is at 0.65 in Aug 2018 with a good chance to reach 0.48 (last seen in Mar 2008) or even 0.38 (last seen in Oct 2000) within a year or so.

Even though the ban is on existing properties and not on commercial or off plan properties, but the price and transaction damage will be seen and felt in all areas even though the ban is yet to begin.

Developers have already started going bankrupt in NZ.

Bankrupt property developer owes creditors millions

Bankrupt Auckland developer's appeal against seven-year ban thrown out

 In the recent past, Australia did the same on foreigners:

Foreign investors in Australia hit with new residential property taxes

Then 6 months later Australia property market collapsed:

Is the bottom about to fall out of our $6.9 trillion property market?

Canada implemented in Vancouver and then in Toronto.

2016 was tax in Vancouver of 15% on foreigners.

The Vancouver foreign homebuyer tax is one year old. Here’s what Canada can learn from it.

As on date, this is situation in Vancouver.

Vancouver home sales plunge to 18-year low, but prices barely budge

Toronto implemented foreign buyers tax in Apr 2018.

Did Ontario’s real estate tax close the deal?

Then this happened in Toronto.

Toronto home prices see biggest drop in almost 30 years

Here is the story of Singapore:

Singapore's Luxury Home Market Will Bear Brunt Of New Curbs

Basically, you get the idea, what’s coming to NZ….

The Chinese money flows are going to Philippines (which has zero tax) and to Montreal (instead of Toronto and Vancouver).

So you know where to invest next.