David  SHEARER
Labour Leader

29 July 2013  MEDIA STATEMENT

Key in denial over offshore speculators

John Key is in denial if he seriously believes offshore speculators in the housing market are not a problem worth tackling, says Labour Leader David Shearer.

“If John Key wants to favour offshore speculators over local buyers, that’s up to him.  But I make no apologies for backing Kiwis looking to get into their first home.

“National has left the door wide open to overseas speculators.  Is it any wonder they are walking in and buying up an estimated 2,600 properties in the last year alone?

“The fact is that New Zealand companies are marketing Kiwi houses to the world.  They promote New Zealand to speculators by highlighting the fact that you do not have to have residency to buy houses here and there is no capital gains tax on real estate.

‘We’ve found properties from Auckland to Invercargill that are being marketed to offshore speculators.  There is no benefit to New Zealand in selling our homes to speculators who have no intention of living here.  That can only increase demand, and help drive up prices.

“By placing restrictions on foreign citizens we will help take some of the heat out of house prices.  It is not the total solution – but it is another tool in the toolbox that will allow us to build affordability back into the housing market.

“Labour has a comprehensive package of policies to make housing more affordable.  We’ll build 10,000 new affordable homes a year for ten years and tax property speculation.  We’ll make sure Kiwi first home buyers are put at the front of the queue,” says David Shearer.

ENDS

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