Beating up investors with yet more regulations
Why? Independent economist Tony Alexander says if they do the Government will conclude its efforts to make housing more affordable have failed.
And it will then look for some other way to dissuade investors from buying and encourage them to sell.
Some of the blame has to be placed at the Reserve Bank’s door as it says its house price forecasts have been consistently wrong over the past decade because immigration has been higher than expected and interest rates lower than expected.
“Since 2010, on average our forecasts for annual house price inflation one year in the future have been out by 5.2 percentage points (‘mean absolute deviation’),” the RBNZ says in a report prepared for Parliament’s Finance and Expenditure Committee.
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