REINZ welcomes the bright-line passing its third reading
REINZ welcomes the bright-line passing its third reading, but more supply still needed
The Real Estate Institute of New Zealand (REINZ) welcomes the fact that the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Bill passed its third reading in parliament last night in relation to the bright-line test. However, the housing shortage still remains an issue that needs solving immediately.
The Taxation Bill will see the bright-line test on residential property sales extended from two years to five years.
Bindi Norwell, Chief Executive at REINZ says: “REINZ is supportive of the extension of the bright-line test from two to five years as we believe it will help meet the objectives of preventing profit making by selling properties quickly. Any measure that helps to improve housing affordability and reduce speculative demand is to be welcomed.
“We hope the extension to the bright-line test will help to ensure a steady and stable market, by reducing the attractiveness of property speculation,” she continues.
“However, the fundamental issue around housing supply still remains. Initiatives such as the KiwiBuild programme and more specifically the Unitec deal will help solve some of the housing supply issues in the long term, but we need to start increasing the level of supply as quickly as we can,” concludes Norwell.
REINZ will release an updated Information Sheet to members as soon as the Bill receives Royal assent.