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New Zealand plans to bar foreigners from purchasing existing homes. The ban is expected to become la...
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New Zealand plans to bar foreigners from purchasing existing homes. The ban is expected to become law this year. It aims to slow the rising housing prices and protect New Zealanders interested in buying a home.
The Labour Party government believes that foreign investors have pushed many possible first-time home buyers and families out of the housing market. Last year, median housing prices across the country rose by 5.8 percent, to over $405,000. Housing prices rose even more in New Zealand’s capital city, Wellington. Price there rose by more than 18 percent over a 12-month period that ended in June 2017.
The rising prices have pushed home ownership outside the reach of many possible buyers. One home owner told VOA he feels sorry for the younger generation. “I just believe the market has made it impossible for them to get into the housing. ’’ Just 25 years ago, three out of every four New Zealanders lived in their own homes. Now the rate is 64 percent —and falling.
The plan to ban foreigners from buying existing homes has yet to be approved. But the measure, called the Overseas Investment Amendment Bill, passed its first reading in parliament in December. Restricting foreign ownership of housing has been tried in other countries, including Switzerland, “If foreign investors are looking to put their cash into New Zealand, if it then forces up the price of property, people cannot afford to live anymore.” says Norman Gemmell, chair of public finance at Victoria University.
Critics say foreign investors have had only a small effect on the cost of housing. Low interest rates, limited supply and immigration have also driven up house prices.
Housing prices continue to make solid gains across the country. And for many New Zealanders, the dream of owning a home is as distant as ever.
1.Which is the main factor of the high housing prices, according to the Labour Party government?
A. Low interest rates. B. Domestic investors.
C. Immigration. D. Foreign buyers.
2.What is true about the housing condition in New Zealand?
A. Housing prices rose by over 18 percent over a year.
B. The housing prices of the capital city rose the least.
C. The rate of New Zealanders living in their own houses is decreasing.
D. The country has witnessed the highest rise of housing prices up to now.
3.What do we know about the ban against housing buying of foreigners?
A. It has been approved in New Zealand so far.
B. It has won the support of people from all walks of life.
C. Similar bans have been adopted in some other countries.
D. It will definitely make New Zealanders harder to own a home.
4.What does the passage mainly talk about?
A. It is hard for the locals to buy a house in New Zealand.
B. A ban on stopping foreign home buyers will take effect in New Zealand.
C. The prices of houses have been rising sharply in New Zealand.
D. There are many reasons for high housing prices in New Zealand.
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