Re:Locked-out New Zealanders outraged as visa scheme for ric...
by screenbreakout on Saturday December 25, 2021 @08:56AM
(#29683378)
How will it help New Zealanders if they just invest in real estate? Seems like a good speculative bet for them, but mostly it just makes it more difficult for young people to get afoot in the property market....
Re:Locked-out New Zealanders outraged as visa scheme for ric...
by q1w2 on Saturday December 25, 2021 @07:12PM
(#29688355)
Higher asset prices makes building property more profitable. It incentivizes more construction.
This is how the free market works, in general. When prices go up, it incentivizes asset creators create more. This is one of the down-sides of zoning limitations - they do not let the market provide more for the additional demand.
...and a simple Google search confirms that NZ has been experiencing a construction boom.
Re:Locked-out New Zealanders outraged as visa scheme for ric...
by tjpnz on Saturday December 25, 2021 @10:24PM
(#29689385)
>...and a simple Google search confirms that NZ has been experiencing a construction boom.
The kind of houses which locals are priced out of due to low wage economy. Certainly good for wealthy immigrants and cashed up Kiwis returning from overseas though.
Not all investment sparks innovation - and innovation takes years. I would not expect people investing their life savings to get into NZ to invest in high-risk tech startups, but the investments they make will help the NZ economy all the same.
Investment flow where risk-adjusted returns are highest - that's the nice thing about free markets - you don't have to plan where to put the money - it'll go where it's most demanded.