First fix the housing market

Last updated 05:00 02/12/2012

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I believe that the current housing market is causing a lot of strain on the economy.

Residential property is moving away from home ownership to an investment driven rental market in a way that only supports and encourages further investment. This investment is raising house prices, rents and mortgages.

Having higher mortgages is directly detrimental to the economy as most of the interest repayment goes off-shore. Keeping this loss as low as possible should be a very high priority.

Possible solutions.

- Limit residential purchases to New Zealand residents only.

- Cap loans.

- Have a bracketed land tax on investment property - percentage of value per annum.

Making investment property less desirable should reduce property value, increasing investment in other areas of the economy. Mortgages will be reduced and it may be achievable for average New Zealand families to save for and buy a house.

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