Labour Policy: Higher Rents and Reduced Incentive to Build
Labour Policy: Higher Rents and Reduced Incentive to
Build
15 MAY 2017
“The Labour Party’s new policy to remove negative gearing will see rents go up and reduce the incentive to build new houses”, says Taxpayers Union’ economist Mac Mckenna.
“Property owners will have no choice but to increase rents in order to offset the reduced rate-of-return this policy will have on their investment. Those people currently renting with the desire to buy their first-home will find it much more difficult to save for a deposit.”
“The return on property will fall - which will reduce investment in property construction at a time when housing is woefully undersupplied. New Zealand needs more houses, not less.”
“This policy will hurt investors, renters and those saving for a new home. The only winner will be the politicians, the ones who will spend the extra tax take.”
ENDS