[Oregonkiwi]

Something to keep an eye on perhaps...

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10446531

The Government is taking a cautious approach to immigration, pushing down the numbers of incoming migrants while seeking further advice on the impact of immigration on inflation. It is understood a paper is being prepared for the Cabinet which will address, among other things, the effect of immigration on the housing market.

As the Reserve Bank and New Zealand First highlight the effect of immigration on inflation and the housing market, the Government has decided to drop the target of incoming migrants this year to 47,000, the bottom end of the 47,000 to 52,000 forecast. [article continues]

[swissmissdesigner]

I don't know if is the "right" solution for stop the inflation.?

[liamnrach]

Something to keep an eye on perhaps...

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10446531

The Government is taking a cautious approach to immigration, pushing down the numbers of incoming migrants while seeking further advice on the impact of immigration on inflation. It is understood a paper is being prepared for the Cabinet which will address, among other things, the effect of immigration on the housing market.

As the Reserve Bank and New Zealand First highlight the effect of immigration on inflation and the housing market, the Government has decided to drop the target of incoming migrants this year to 47,000, the bottom end of the 47,000 to 52,000 forecast. [article continues]

OregonKiwi, you're not wrong....

Something to keep an eye on indeed:yes

Although, I echo swissmissdesigner's comments too. Whilst it is fair to say that immigrants have caused an increase in the housing market, I do not suppose that this is the only factor. That said however, I'm sure it will help a little, if not in the short term. The true benefit may not be felt for some time to come perhaps:confused: But they have to start somewhere and the house price increases cannot be sustainable in the long term. Only my opinion of course....;)

Good thought provoking post though...

Cheers:nice1

Liam n Rach

[xanctus]

Well, quite frankly many of my Kiwi friends were happy with immigrants coming. However, they also said that some immigrants coming here with bringing sum money that are much stronger than the NZ dollar indeed give the impact of the inflation or effecting the house market.

If you think about it, it's quite true...some people have their money from home maybe worth double for the $NZ, so yeah...why not buy a house straight away. They are not wrong, that's their luck and fortune. But hey...that's life...Some people just get luck and others need to seek it. What can you do with such time? ....I guess try to find a way to get there also.

[swissmissdesigner]

I agree with both of the above posts.
My kiwi friends welcome skilled immigrants too.
Immigrants help pick up the NZ economy. In fact skilled kiwis leaves the country to Aussi and come back with the fast money to then buy the homes.
This is to me the same thing as immigrants do. By limiting immigration to NZ would not just be punishing immigrants, but also their own economy.
I would be more concerned about all those young unmarried Kiwi women that have 2-3 children each from a different father just collecting government support money. That seems like a business to me.

[anna_c]

I would be more concerned about all those young unmarried Kiwi women that have 2-3 children each from a different father just collecting government support money. That seems like a business to me.

I'd be more concerned about the fathers not supporting their offspring, rather than blaming the women who are living on a pittance, and actually doing quite valuable work.

[Nathan]

It's easy to blame the new comers for this, that, and the other thing. It happens everywhere and will continue to. If it weren't the home prices it would be something else. That's just part of migrating.

[Hesh]

I read the article and frankly speaking I'm amazed the way it's putting the issue..(pun intended) The only thing I would like to say is the immigrants are earning / spending money in NZ..they are providing the skilled trades persons / employees to the organisation.. so if a skilled immigrant earns 'X' money and spends his income in the same country.. isn't that country benefited ?
one way inflation is good cause it helps to drive the economy.. am not an economist but an economist would agree with this

[skibumwa]

What is considered a high salary in NZ? In Wellington to be exact?

John

[Marco]

Hi,

Average is around 40/45K.
In general a salary above100K is considered high.
Both apply for Wellington.

Cheers,
Anita

[incredible hulse]

New migrants will have some effect on house prices, but probably less so than Kiwi's returning having earning sterling for 2-5 years on OE's (due to sheer numbers)

[MattA]

House price increase is a good thing. You earn money on your investment, provided of course you have an investment in the property market. House prices crashing and lots of investors left with negative equity is far worse.

A recent UK report found 67% of property sold went to developers or buy to let. So building more cheaper housing was not an answer.

What you are seeing is capitalism at work.

[Oregonkiwi]

The Herald's current online poll asks, "Should the Government restrict immigration to keep house prices down?". Results are 59% yes, 41% no.

[jess]

There's pressure on the current govt. to explain why it's getting harder for average young kiwis to buy their first home and why renting is up. First they tried new home loan schemes to help people get on the property ladder, and now they are trying a limit on migrants. Since it's a common perception that people are coming over with savings converted from higher currencies and outbidding kiwis, limiting immigration is a way the government can show voters they're doing something to try to get housing prices down. But they can't limit it much, because of labor shortages. --- I personally don't understand how a difference of 5,000 fewer migrants in NZ will have a noticeable effect, with 47,000 coming in this next year. I suspect it may be more for the appearance of taking positive action.