If a foreigner wants to pay over the odds for my house, I will gladly separate a fool from his money.
My only regret is the Resource Management Act prevents me from building an unlimited number of additional houses to sell to cashed up foreigners.
Phil Twyford’s bill banning foreigners from buying existing New Zealand houses has been drawn from the ballot. I just have a hard time seeing the point.
Let’s work up from first principles. The price of houses depends on the supply and demand for houses, but the demand for houses is derived from the demand for housing. What do I mean? If houses didn’t supply housing services either to owners or to tenants, nobody would want the things.
Demand for housing depends on the number of people who want to live in an area. If a lot of people want to live in a place relative to the existing stock of houses, then the price of existing housing is bid up (rents) until it becomes economical to build new houses. The price of houses then derives from the expected flow of rental income that comes from them. And note that this…
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Utopia, you are standing in it! 
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