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Charge foreigners property tax - Greens

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Charge foreigners property tax - Greens

3News NZ

Russel Norman

Russel Norman

Foreign buyers are driving up house prices and the Government should restrict their purchasing power, the Greens say.

Affordable housing is a big issue and the Greens say New Zealand should follow Hong Kong's lead and bring in a 15 percent tax on sales to foreigners.

"Many of these buyers may not even be intending to live in the homes they've bought," co-leader Russel Norman said on Wednesday.

"Real estate agents in Auckland are raising concerns that overseas buyers are driving up house prices."

Dr Norman says Australia also has restrictions on overseas buyers - they can't purchase established dwellings as investment properties unless they meet strict criteria.

"The situation, as it stands in New Zealand, is that foreign buyers only need approval under certain conditions such as when the deal is worth more than $100 million," he said.

The Government earlier this month announced a plan to free up more land for housing and Labour has announced a policy to build 100,000 affordable homes over 10 years.

NZN

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Comments

21/11/2012 10:01:15 p.m.

Dan wrote:

Many on the left do not think we have a weak currency compared to our trading partners, given that it is at a record high against the greenback. Also, overseas countries are devaluing their currencies which means that it will be beneficial to us to print money in order to devalue our currency as we are an exporting nation. Furthermore, the left want to bring in a Capital Gains Tax so they can use the revenue to close the gap between the rich and the poor, possibly be reducing GST a bit further down the line, and by building 100,000 cheap compact houses to narrow this growing gap between the rich and the poor.

21/11/2012 5:39:29 p.m.

Chris wrote:

Thats what the left love to do tax, tax, and tax even more the hard working and succesful people and then 'redistrubute' the money to the lazy. Moronic socialist idealogies. Good one.

21/11/2012 2:37:10 p.m.

Bill wrote:

You're a Foreign buyer Norman.

21/11/2012 1:59:50 p.m.

Mike wrote:

Lets introduce a law to block foreigners being MP's, particularly Aussies from across the ditch!

The problems of affordable housing come down to supply, and Labours (with Green help) RMA have strangled new development which has pushed up prices.

What is Labours answer? Print money, devalue, make NZ cheaper to overseas interests, lower real wages, all to give our exports more edge against our trading partners stronger currencies. If we can't get an edge with a weak currency compared to our trading partners, a weaker currecny wont help. Our current $13.50 min wage would be lowered to around $10 buying power - how will this make living or housing more affordable? All it will do is push up inflation, have unions conducting industrial action and help grind the NZ economy into the ground.

When that doesn't work, they want to introduce a CGT and loopholes that would see many curently paying 28% income tax on cpaital gains only pay 15% CGT or excempt. Its likely that CGT will impact housing prices and push them a little higher. CGT is really a tax on inflation, hence Labour doesn't want low inflation, but high inflation!

21/11/2012 1:11:43 p.m.

Greg wrote:

Theyl just charge us more rent.
They paying GST aint they?

21/11/2012 12:33:43 p.m.

Dan wrote:

I would say ring in a tax on property sales to foreigners but start off with it being at ten percent and see how the market reacts to that. Fifteen percent is too ambitious as a start-off tax and will scare foreign buyers off.