Chinese investment set to boom
The floodgates are set to open for Chinese buyers to pour US$10.9 billion into New Zealand real estate as restrictions on privately held capital are eased, according to a new report.
The report from real estate listings website Juwai.com, with 2.5 million properties and businesses for sale, studied the effects of the Chinese government’s second phase of its Qualified Domestic Individual Investor (QDII2) programme to allow its citizens to buy overseas property.
For those who own property this is wonderful news as the sudden flood of Chinese cash will push bloody property prices up even further. If you rent or are poor, or are young you are screwed because that house you were trying to save for will be stratospherically out of reach now.
Our insane free market property laws allow for massive foreign ownership and it’s mainly baby boomers who are invested in this market who are benefitting while Gen Y, Gen X and the poor are locked out of ownership forever.
Because Boomers vote, their interests are enshrined by the National Government, the young, the poor and the disadvantaged don’t vote and so are robbed blind of the benefits of being a citizen in NZ.
As I pointed out yesterday, this foreign speculation is damaging our economy and benefiting those who are already benefited.
Our free market lax regulation to ownership is the problem here, until that is acknowledged, the property bubble will continue to alienate Gen X, Gen Y and the poor from the security of property ownership.
The wider game at play here is China’s cold war with America. The US want us economically dominated by the TPPA, China wants us to be the new Tibet of the South Pacific.
Sadly no one seems to be standing up politically for NZ independence.