I’ll huff and I’ll puff and I’ll blow your house down

There has certainly been an overdose of huffing and puffing around the Overseas Investment Amendment Bill.  The preamble Explanatory note includes this fabulous piece of fairy dust.

The Bill will ensure that overseas persons who are not resident in New Zealand will generally not be able to buy existing houses or other pieces of residential land. This will lead to a housing market with prices shaped by New Zealand-based buyers. The Bill will therefore make homes more affordable for New Zealand buyers at some times in the property market cycle, including for first home buyers, while also supporting our efforts to build a more productive economy, by helping redirect capital to productive uses.

Chicago Agent Magazine

“overseas persons who are not resident in New Zealand” 

This includes Kiwis living abroad who want to buy a house and come home.  They must now return to NZ a year before buying and not leave NZ for more than 183 days during that year to no longer be an “overseas person”.  As a Kiwi who purchased from abroad and moved home to NZ to live here this would have been extremely frustrating.  All ex-pats returning home will need to rent for a year before buying a home. Yup, that should help the rental accommodation shortage.

“This will lead to a housing market with prices shaped by New Zealand-based buyers.”

This will lead [That is a bold and totally unsubstantiated assertion!] to a housing market with prices shaped by NZ based buyers, or maybe sellers, or maybe interest rates, or maybe another GFC, or maybe a shortage of housing stock, or maybe Reserve Bank LVR restrictions, or maybe excess immigration, or maybe reduced immigration, or maybe…

Clearly, the writers were asleep during the Economics 101 classes.

“The Bill will, therefore, make homes more affordable for New Zealand buyers at some times in the property market cycle,”

The Bill will [another bold assertion] therefore make homes more affordable for New Zealand buyers at some times in the property market cycle,

Oh, my goodness – there are property market cycles! Surely they do not shape prices?  Weren’t we just told a few words ago that stopping overseas buyers will shape the prices?

Homes will be more affordable at some times in the cycle!  Such brilliance, such erudition!  Where do they find these people?

“while also supporting our efforts to build a more productive economy”

while also supporting our efforts to build a more productive economy. [/TUI]  How is all this “Zero Carbon” nonsense going to make a more productive economy?  How is paying people to breed going to make a more productive economy?

“by helping redirect capital to productive uses.”

How on earth does stopping me, as a returning Kiwi, from buying an existing house to live in on my return until I had been here a year help redirect capital to productive uses?  Surely I would simply sit on my capital for 12 months then buy my house?

The Disclosure Statement  for this Bill makes interesting reading:

2.1.    Are there any publicly available inquiry, review or evaluation reports that have informed, or are relevant to, the policy to be given effect by this Bill?  NO

2.4.    Has further impact analysis become available for any aspects of the policy to be given effect by this Bill? NO

2.5.    For the policy to be given effect by this Bill, is there analysis available on:

(a)        the size of the potential costs and benefits?  NO

(b)       the potential for any group of persons to suffer a substantial unavoidable loss of income or wealth?  NO

3.6.    Has there been any external consultation on the policy to be given effect by this Bill, or on a draft of this Bill?  NO

But hey – we have a 100 day [self-imposed] deadline (or was that a Headline?) to meet and we sold our souls to the xenophobic NZ First gang, so we need to rush this ill-advised Bill through the House.  Trust us, we know what we are doing!  [/TUI]


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In solidarity with the those in the world’s most despised demographic, WH has decided to ‘come out’ as an old white male. WH enjoys exercising the white-male privilege that Whaleoil provides for him by writing the occasional post challenging climate change consensus; looking at random tech issues that tweak his interest, as a bit of a tech nerd; or generally poking the borax at anyone in public life who goes on record revealing their stupidity. WH never excelled on the sports field because his coaches never allowed him to play in his preferred position on the right-wing. WH also enjoys his MG.

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