Today on stuff.co.nz it was announced that the NZ house prices were rising at an astonishing rate. I don’t know what the cause is but only in December 2011 it was announced that according to the Economist New Zealand’s real estate was amongst the most overrated in the world together with countries such as Australia, Belgium, Canada, France, Britain, the Netherlands, Spain and Sweden.
But today it seems house prices are growing by absolutely incredible sums and even with a global economy going down the gurgler money seems to be no object over here. Anybody has a theory as to why this might be so feel free to leave a comment and if it is your first please be patient as it only takes the approval of your first to be able to comment here regularly.
Here are some of my theories. Maybe Kiwi’s are so ignorant about the global economy they don’t know bubble building and hence debt creation when it hits them in the face and getting more people in the real estate trap is one way of manipulating New Zealand into more debt which we have to pay off with asset sales.
Maybe foreigners (American and Europeans) who can see the shit hitting the fan in the near future are buying real estate with a view to make a buck when people want to move to a saver country.
Over to you.