National basing their future economic plan on variables like immigration and house prices is not not a formula for economic recovery.
They are clearly relying on mass immigration and a mass foreign buy up of kiwi homes to fund its tax cuts - and their “squeezed middle” will be squeezed further.
With “user pays immigration levy” and allowing foreign property buyers albeit with a 15% one off tax, means National need both of these measures to continually increase. And for the foreign property buyer tax to work, National must be banking on house price inflation compensating these foreign buyers for their tax.
Bringing down the bright line test to just two years means the housing market will spiral out of control - with empty properties being flipped for massive profits.
Mass immigration will only put pressure on our failing infrastructure, push house prices up, living costs up, and drive wages down. Low wages and high costs means we will see a flight of mainly young kiwis out of our country.
This is circa 2014 all over again - a speculative consumptive economy, not a sound wealth-based, export-growth, added value way forward.
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