Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Property Tax Would Impact On Values And Cash-Flow

Property Tax Would Impact On Values And Cash-Flow New Zealand Property Institute Says

Proposals to tax owner- occupiers of houses will have an impact on home values and homeowners’ cash flow, the New Zealand Property Institute said today.

This follows the release of the McLeod committee's interim report on taxation.

Property Institute President, Anthony Robertson, said today, " As a starting point, this is a good report. It looks at taxes across the board and should be read by every New Zealander. It’s important that the whole report is considered and not just parts that engender a knee jerk reaction.

“This reports does challenge assumptions about New Zealanders traditional investment decisions. This can only be positive. This proposal, if adopted, would require a major shift in the thinking of most New Zealanders who’s main cherished goals and ambitions in life include that of owning their own home and paying off their mortgage. While intellectually, this might be considered a nationally desirable economically outcome, it will require major re education of most New Zealanders.

It is important that New Zealanders realise there is a broader investment market available to them and indeed a broader property investment market outside just residential investment. A healthier broad based investment market is good for all.

“In New Zealand we have an owner-occupier housing stock of some $125 billion and a culture very much geared towards home ownership. Any change to the taxation regime on housing, or other property, will impact on values and peoples cash income.

The review paper example suggests an addition increment cost of home ownership of around $1500 per annum for the average homeowner. It remains to be seen how this increment would impact value across the residential housing estate. Historical precedent suggests tax initiatives do impact values at least in the short-term e.g. 1987 introduction of GST.

“This may impact differently on different sectors of society, depending on their circumstances. For example some people may be asset rich, in terms of housing. but cash strapped.

“The property sector would be cautious about change from the status quo. Any change would need to the thoroughly thought through,” Mr Robertson concluded.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>