Once again Government thinks it can solve a problem by adding more tax.
This time it’s the housing market and the bright-line test. It’s highly likely that the bright line test will be extended from the current 5 years to 7 or even 10 years. I already have a 10 year bright line test on anything I buy and sell as I’m tainted as a developer, it doesn’t stop me buying property and it won’t stop others, it’s just more tax.
What will make a difference is more supply. But the Government isn’t helping with that. After locking the construction industry down earlier this year, meaning ZERO supply for new dwellings for 6-8 weeks and many property developments put off or cancelled, the housing shortage is getting worse, not helped by the high number of Kiwis scuttling home to hide from Covid.
As I have been saying for many years now, the only thing that will slow house price growth is more supply – and no government has done anything to help more supply yet. Lots of talk, but nothing that actually makes property development any easier or more cost effective. Every development we start still takes longer and costs more due to the constant flow on of new regulations making houses more expensive to build.
#assuredproperty #housing #rentals #propertyinvestment