Comment by mistermann | Hacker News Reader

Comment by mistermann | Hacker News Reader

1. Norway 146. Yemen 2. Denmark 147. South Sudan 3. Iceland 148. Liberia 4. Switzerland 149. Guinea 5. Finland 150. Togo 6. Netherlands 151. Rwanda 7. Canada 152. Syria 8. New Zealand 153. Tanzania 9. Australia 154. Burundi 10. Sweden

Will be interesting to see how spots 7, 8, 9 hold up going forward as many/most middle class people in these 3 countries increasingly find they cannot afford even a very modest home within reasonable commuting distance of work.

For example:

http://www.greaterfool.ca/2017/03/17/outta-here/

"My wife, daughter and myself currently live in Newmarket in a detached home that we purchased our home in late 2014 for $590,000 and it’s worth $1.1 million. That’s quite the profit in 2.5 years. So an option we are leaning towards is selling, and then renting for until we are ready to leave town and go north or east."

If it was just single family homes in prime areas it might be understandable, but the "bubble", or whatever it is, is now creeping into rent, leaving nowhere to hide.

I am an Indian who have lived for a while in NZ. Please do not chug on this Kool-Aid that NZ is not corrupt. Part of the reason why real estate in Auckland is overpriced is because the government deliberately does not formulate a legislation that forbids non-residents from buying up property. Please petition for this reasonable legislation. Who does the current policy enrich?

It is your country. I think you should fight for it. Corruption comes in all shapes and sizes, and underhanded disenfranchisement is the insidious form it takes in NZ.

Oh, as a Canadian I fully agree, the exact same thing happening to you is happening to us as well. In Vancouver, upper class neighborhoods hollowed out by empty unmaintained multi-million dollar homes, condo towers pitch black at night, high end sports cars with N (new driver) stickers, horrendous traffic as (speculation) it seems people can buy a driver's license without first learning how to drive, etc.

Popular opinion is that eventually the bubble will pop, but unless China itself pops, I think their economy is so relatively large that "this time really is different", if you don't own by now you, and your offspring, really will be priced out forever. It's a depressing realization.

As for fighting for your country.....as usual, it is the boomers who overwhelmingly own property, and it is boomers who show up at the polls on election day. Voters love making 10% to 30% tax free on their massively leveraged investments, they'll never vote for any policy that would threaten that.

Oops. I thought Newmarket, Auckland. But I agree with your basic point.

Cc. As a vancouver resident (north shore) I'll confirm all of that. This is a hollow city. Im in my car waiting for an 8am with a client. Buildings are quiet, traffic light.

Vancouver is enacting a tax on empty homes http://www.cbc.ca/news/canada/british-columbia/city-of-vanco...

Too little, much too late. And it's pocket change to the people who are buying.

Corruption does come in all shapes and sizes, but what you just described doesn't sound like corruption to me.

Selling off properties to foreign owners isn't necessarily bad policy (it can bring in foreign capital, that is then transferred to a local owner or resident)

When it gets to the point where locals can't afford to place to live, what would be the correct word to use?

"Capitalism."

Capitalism + globalisation

Homelessness? Economically displaced person?

If you label every policy you dislike as the result of "corruption" you're not doing the fight against actual corruption any favours.

Highlighting NZ as exemplary is exactly the sort of reward that politicians need to be immune to attempts of corruption. It also creates an environment where people who go into public service do so with a concept of self that has "is not corrupt" as one strong component.

We have the exact same policy in the United States. Anyone can pick up a phone and buy realestate.

No one calls it corruption here. It's just capitalism? This has bothered me for years. I first learned about it in a realestate law class. My hand went straight up. Nothing has changed.

(They passed a feel good measure about a year ago that supposedly vets the money. I can't think of a country I can own realestate with a money transfer.)

>the government deliberately does not formulate a legislation that forbids non-residents from buying up property.

This is not even remotely corruption.

I'd be interested in a city in a first world country that that actually downright forbids non-residents/foreigners from buying property. I very much doubt one exists.

There was no reason historically to have such legislation.

A very high tax when the owner is not in the country and also isn't renting the property at fair market value. Basically, you should use the property somehow rather than merely hoarding, storing, and withholding the property from its purpose. If it's not being used, the tax would be a total obscenity. Punitive. e.g. 90% tax on the profit of the home sale. If you're a foreigner parking money in real estate, not using that real estate, and disallowing it to be used? Thank you for your contribution to our society. Pay up.

Proof of living in the residence is necessary for some kinds of loans, so it's not a new concept. And the tax can be settled once every X years (maybe 3), or at home sale.

Property bubbles are basically created by social policies that encourage speculation on residential property.

It's worth noting that Norway and Denmark have pretty strong restraints on "buy-to-let"

Why is this corruption? And anyway, many (most?) countries have no such law.

Plenty of affordable places, just not near Toronto or Vancouver. If I wanted a less exciting life I'd buy a two bedroom in Halifax or Quebec City.

Take a look at Saint-Roch in Quebec City, for example. Two bedroom hip condo is around $200k. No car necessary, just walk around to buy stuff. In Halifax it would be around $240k for something downtown and walkable. In Toronto you'd be paying around $800k for these types of places.

I agree that there is a bubble, but it's mostly in BC and the GTA, everywhere else still seems like it hasn't jumped the shark.

Indeed, there are still some places in the country where you can purchase a home for a reasonable amount. Anywhere remotely desirable however has seen a tremendous decrease in affordability (median price vs median income).

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