What you can gain without a tax on Capital Gains
Got your eye on a good investment? Great!
We applaud the decision not to implement a Capital Gains Tax which would have penalised those buying and selling property.
The NZ Property Investors' Federation, which often shares Rentals.co's position on protecting landlords, has applauded the decision not to introduce a capital gains tax. The tax was expected to make rentals more expensive because of the need to pass costs on.
The Government is still considering looking at land banking and speculation. In the words of NZPIF chief Andrew King, "Reform of the tax system lost any validity the moment it was decided to exempt the family home from consideration for no reason other than political expediency."
“From that point onward, it was simply an envy tax and had it proceeded it would have had devastating implications on the rental sector including a reduction in the number of rental properties available and a commensurate increase in the cost of renting.”
REINZ chief executive Bindi Norwell says that as an industry they had grave concerns that a capital gains tax could push up house prices even further as seen in other OECD countries.
Those who own lifestyle blocks were facing a capital gains tax on the sale of their own home on land over 4,500 square metres.