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

 

Reaction to Labour's housing policy

Reaction to Labour's housing policy

The NZ Property Investors' Federation is pleased that Labour will engage with them in talks about improving tenure for tenants. While some tenants want long term tenure, many more prefer the flexibility that renting brings. For any new policy to work, it needs to be balanced and not trample over the rights of the rental property owner.

Labour state that in the late 60's and 70's, 30-35% of the new houses built were entry-level homes. This is because developers then didn't have council fees, often in excess of $50,000, that make low cost new builds unachievable. The best thing Government can do today for housing affordability is to significantly reduce council development fees.

We need to question if we need as many low cost houses as we did in the late 60's and 70's. Baby Boomers were first home owners back then and needed cheap new houses. Today's first home buyers should be buying the baby boomers first homes.

Labour say that they are introducing a Capital Gains Tax to get speculators out of the market. This is deceptive as Labour knows that speculators already pay tax on any capital gains and the IRD has a well funded and successful specialist unit to make sure they do.

The public need to know that a CGT will push up rents, lead to overcrowding for tenants and make it harder for young New Zealanders to get onto the property ladder. They also need to know that it will apply to Farms, businesses and shareholders as well.

A CGT has not reduced house prices in any country that has implemented it. A CGT provides very little extra tax funds, usually only accounting for a few percent of tax income.

There is no incentive for rental property owners to move into the so called "productive sector", as other investments will also come under the CGT. Rental property Owners are already part of the productive sector as they house workers, contribute to the tax base and support many other industries.

Many tenants will be unaware that Labour have also planned to ring fence any losses that a rental property may make. This will have an even larger affect on an owners ability to provide rental accommodation than a CGT. These two policies alone will put enormous pressure on rental prices, condemning tenants who would prefer to be home owners to being tenants for life.

Housing is an essential but complicated issue and people need to think past the clever sound bites and wishful thinking that higher taxes and regulation will improve everything.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail's Pace: Aucklanders Face Frustrating Commute Over Harbour Bridge

Journeys into Auckland's CBD took longer than usual as traffic banked up around the damaged Harbour Bridge. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>