• Full Story

Property tax hasn't worked, Greens say

Email
Print

Fri, 09 Dec 2011 3:24p.m.

In Auckland, the average price is up 3.4 percent

In Auckland, the average price is up 3.4 percent

The Government's attempts to dampen down the housing market haven't worked and new measures are needed, the Green Party says.

Co-leader Russel Norman is citing latest data from Quotable Value which shows the average price nationwide in November was up 1.7 percent compared with the same month last year - only 4 percent below the 2007 peak.

In Auckland, the average price is up 3.4 per cent and central area homes have increased by 4.7 percent - 2.5 percent above their 2007 peak.

The Government taxed investment property in its last budget and said that would help avoid another "boom and bust" cycle which saw prices at record highs in 2007 followed by a plunge during the international recession in late 2008 and 2009.

"The Government's tinkering with tax on property investment has proven to be totally ineffective in dampening house prices and shifting investment into more productive sectors," Dr Norman said on Friday.

"It appears the big personal income tax cuts for the wealthiest New Zealanders has undermined the changes to tax on capital by giving those people more to invest in property."

Dr Norman says a capital gains tax - which the Greens proposed long before Labour - is the most effective way of keeping house prices down.

NZN

Become a fan of 3 News on Facebook and on Twitter.

Post a Comment

Before commenting, please take the time to read our moderation guide


(Won't be published)



Comments

12 Dec 2011 04:15p.m.

John wrote:

The good old greenies wouldn't have aclue other than to winge.

12 Dec 2011 02:14p.m.

robbie wrote:

Mike - pretty well put. As a practioner of real estate I can tell all that over the last 12 months the 'investor' inquiry to buy more homes has all but dissappeared and yet the number of 'investor' properties which have come on to the market - have increased. Pretty much what we all wanted - what used to be a rental is now being purchased by 1st home buyers. Oh ya, did I mention that 1st home buyer activity has picked up dramaticly.

11 Dec 2011 11:56a.m.

Mike wrote:

What is driving the property market most is demand which every self-proclaimed 'expert' forgets.

When it comes down to it, NZ has a housing shortage which has pushed up prices. This has been driven most by a growing population. NZ has also a more affluent population so more people want to own their own home and it in its own way is also the NZ 'Super' scheme adopted by many. If you consider likes of Kiwisaver and the billions it lost in 2008 on the whim of the market, the housing market is much more stable. We haven't really had a housing market crash with the recession. The prices dipped a few pts, and typically houses took longer to sell which is hardly a crash. A choice of invest in Kiwisaver or your own home - your own home you have more control plus its been more stable in the last few years.

Under Labour we had many so-called poor put into $400,000+ houses as it was deemed they were 'poor' if they didn't live in an expensive house. Of course they didn't have a stake in the homes so typically more damage was done to the state houses than where people own their own homes.

Those that invest in their own homes regularly live on less than the so-called poor and put that money into their homes etc which is how they get ahead by getting off their backsides and doing vs complaining and asking for handouts.

The myth of so-called rich in rentals? The average number of rentals per family in the rental business is under 1.5, ie they own their own home and when thats paid off or under control financially, they got a rental also. Its Ma and Pa rental owners in the majority of cases which Labour and the Greens want to kick in the teeth for not being a drain on NZ.

The act which increased house prices the most is the RMA as its stopped much new housing development and this has pushed up prices through red-tape. Take a look at cost of approval on sections and building now, if house prices had matched the increase in red-tape they would be over double the cost!

09 Dec 2011 04:21p.m.

Jim wrote:

Certainly the measures taken must have had some effect, although I would like to see property investment along with a few other things (charter boats, aircraft owned and used as tax offsets as examples) be made to stand alone as businesses and not be able to used to bring other earnings tax liability down. really though I see the only real way to take the heat out of the residential market is to require a higher minimum deposit e.g.30% and it has to be able to be serviced by one of the household wages only, apparently this is how it used to be and house prices remained more stable.