Originally Posted by
diallta
I believe the intent of these restrictions is precisely the opposite--to prevent wealthy overseas buyers from purchasing property as an investment, often in cash, which then drives up the overall costs of housing by reducing market supply, while they simultaneously rent that property back to people working on the local economy for a profit. By restricting foreign buyers who don't live in, and may never intend to live in, New Zealand from buying property, it should cool the market values and allow people to afford places to live without being marginalised by those who see those properties primarily as investments.
As someone who one day hopes to buy a house in New Zealand (to live in, not to rent for profit or financial gain), it seems like a good plan. If you purchased a house in Auckland 25 years ago, then you might not be so enthusiastic about a program to reduce property value. But, as with all programs of this type, its success and effect remains to be seen.