Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


1 in 7 Akl houses now going to big property speculators

1 in 7 Akl houses now going to big property speculators

Speculators are running riot in the Auckland housing market making life tougher for first home buyers, says Labour’s housing spokesperson Phil Twyford.

Newly released data from Core Logic shows a 40 per cent increase in the share of house sales going to investors who already own five or more properties. Nearly 6000 homes were bought by speculators in this category in the last year, out of 45,000.

“National has refused to shut down their speculator mates, allowing them to make a killing in a rising market at the expense of first home buyers.

“Speculators have leveraged up, with the help of tax breaks and the absence of any effective tax on capital gains. Now one in seven sales is going to speculators with five or more properties. Nearly half of these homes went to people who already own ten or more properties.

“It is time the Government finally stood up for first home buyers instead of encouraging the Auckland real estate market to behave like a giant Ponzi scheme. Speculators are driving house prices up and home ownership rates down.

“Labour will change the law so a speculator who sells a rental property within five years will pay income tax on any capital gain – no ifs, no buts. We’ve signalled we are going to shut down the tax breaks that allow speculators to write off their losses on rental properties by paying less tax on other business activity.

“Last year property speculators pocketed $650 million in tax breaks – a massive subsidy for speculation – while everyone else got up and went to work each day to pay their taxes. This has to stop,” says Phil Twyford.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On How Climate Change Threatens Cricket‘s Future

Well that didn’t last long, did it? Mere days after taking on what he called the “awesome responsibility” of being Prime Minister, Christopher Luxon has started blaming everyone else and complaining that he's inherited “economic vandalism on an unprecedented scale” - which is how most of us would describe his own coalition agreements, 100-Day Plan, and backdated $3 billion handout to landlords... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.