By The Associated PressA wave of foreign buyers from Europe and Asia has flooded into the U.S. real estate market, pushing prices below where they were before the financial crisis, according to real estate experts.
New Zealand’s housing market is experiencing a surge of foreign investors, who are pushing prices to record highs, according the Real Estate Institute of America.
In the first six months of this year, the U,S.
was home to just 1,800 foreign buyers, and that number has risen to nearly 4,000, according data from the real estate website Zillow.
Foreign buyers have flooded the U to the tune of $6 billion in the first half of this fiscal year, according Zillows data.
The surge in foreign buyers has sparked concerns in New Zealand about the health of the economy.
A recent report from the National Reserve Bank said the housing market in the country has fallen into a downward spiral.
“Foreign buyers are flooding the market, driving prices to historic lows and forcing rents to triple,” the report said.
But there are some steps the country can take to help the housing crisis, including providing foreign buyers with an extra tax break, according Real Estate Investment Trust (REIT) President and CEO Michael McBride.
Currently, foreign buyers receive a credit on the first $500,000 of a home purchase in the U.
“That credit is limited to $500 for first homes, $1,000 for second homes and $2,000 per subsequent home purchase, according McBride, who said he’s optimistic that this year’s tax credit will be extended to foreign buyers.
While that is a huge amount of money, he said, it is only a partial credit, meaning that it only applies to the purchase price of the home.
There are still a number of hurdles to overcome to make that credit available, such as the need to obtain a loan from the bank and a bank must approve the application.
REIT President and COO John O’Hagan said that if there is a shortage of foreign capital, it would be better to simply offer a credit for the purchase of a property instead of having to apply for a mortgage.
He said that with an excess supply of foreign money, the market would be less attractive and more likely to crash.
If the economy were to slow down, it could cause a housing bubble, which could be a real problem, McBride said.
If the country is to stabilize its economy, McBride said, the country needs to get rid of the tax break.
It is estimated that the foreign buyer tax credit has generated $5.2 billion in revenue, and a number have said that the tax credit should be eliminated altogether.
McBride said the tax is not the only problem facing New Zealand.
Reforming the banking system is also a key part of the solution, he added.
However, the New Zealand Government is still working to find a way to deal with the issue.
Prime Minister Jacinda Ardern said in February that the country needed to get out of its housing bubble.
Her comments were echoed by Housing Minister Rob Stokes, who earlier this month said the government would work with local governments to ensure that foreign buyers did not receive preferential treatment.
That means foreign buyers will not be able to deduct interest charges from their mortgages, he noted.
Ardern also said the country would seek to reduce the tax rate on foreign buyers to as low as 10 percent, which she said was a fair deal.
Stokes told reporters on Wednesday that the government was also exploring ways to introduce a cap on the number of foreign people who can buy a home.