Housing Announcement

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    Posted: 24 Mar 2021 at 5:07pm
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Platinum
Platinum


Joined: 14 Aug 2014
Status: Offline
Points: 1435
What is everyone’s take on the recent housing policy announcement?

Strikes me that it is going to make it harder for first time buyers as investors are now incentivised to buy new builds and thus making it even harder for first timers 
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Post Options Post Options   Likes (0) Likes(0)   Quote Fish 4T Quote  Post ReplyReply Direct Link To This Post Posted: 25 Mar 2021 at 8:38am
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Silver
Silver


Joined: 25 Jan 2014
Location: North Shore
Status: Offline
Points: 494
This is my 2c as property investor in Auckland,
10 years line - doesn't affect me as an investor but wont help 1st home buyer market either. 
investors will hold onto their properties longer which mean 1 bed, 2 bed, small 3 bed and less more affordable properties in the market.

new build incentive - I don't like buy new build as mostly heavily negative geared, CG not attractive enough and hassle of new build tenant.
With everything going up in cost, new build cost will go up without a question and this not helping 1st home buyer either.

No more interest reduction after 27/3/21 or 4 years - this actually might put off some new and ma & pa investor (major player at the moment) to buy more next week as they might not have other means to generate extra income to cover this or vehicle to reduce their tax.
As for an existing rental, doesn't make much difference to worry about.

interesting time ahead....
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Post Options Post Options   Likes (0) Likes(0)   Quote Steps Quote  Post ReplyReply Direct Link To This Post Posted: 25 Mar 2021 at 10:49am
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Titanium
Titanium


Joined: 14 Oct 2013
Location: Franklin
Status: Offline
Points: 11987
What is everyone’s take on the recent housing policy announcement?
 Well everything that this government has done in housing, then throw in how they distributed the 'fiscal easing' , in spite of economists and RB advise as to the effect these would have on  housing market, 1st home buyers, affordability and also the accelerating effect of the balance between 'rich and poor'..

They ignored.

So now its sort of desperation, using a yard broom to clean way a damn burst , attempt at a patch up...

Doesnt really matter if these changes will make any difference, the market has run, The market is leveling off as it always has and will till everything else sort of catches up again for the next cycle.

Their short sighted , rushed, against advise, actions since coming to the treasury benches are now being seriously felt.

1st home buyers/ low income not only have to deal with increasing affordability, increasing child poverty, this country was promised, but they are being hit from the other end as well.. rents are also climbing. And with this added to landlords, espec mum and dad landlords who are on tight budgets.. rents will also still climb.

Like I often say.. patch fixes always come back and bite in the bum.

So what will this  do?
Affordability will slow, maybe even level off.. a little sooner than if market left to run.
Rents already in the rise, and will most likely increase faster, so the 1st home buyer now has less to save for a deposit..
Government has screwed them and low income earners both ways.

The bright side...
Well the government is no longer predominately baby boomers in charge.. so maybe we are off the hook a little.. if the voters actually realise this.Wink
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Post Options Post Options   Likes (0) Likes(0)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 25 Mar 2021 at 12:19pm
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Titanium
Titanium


Joined: 10 Aug 2011
Location: Waiuku
Status: Offline
Points: 6372
I've lost any respect I may have had for Grant Robertson over the last few days.  His comment that renters can just move elsewhere if rents go up too much was staggeringly arrogant and about as out of touch with reality that any politician has ever been.  Also his description of interest payments being tax deductible as a "tax loophole" was an outright lie.  Every other business in NZ, including commercial property investors, can treat interest payments as tax deductible so why single out one business over any other for a tax grab?  Maybe business should be worried about their future tax plans.

Sadly it all smacks of desperation from people who are realising that they don't have a clue  how to solve the problem but know they need to be seen to be doing something.
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Post Options Post Options   Likes (0) Likes(0)   Quote Steps Quote  Post ReplyReply Direct Link To This Post Posted: 26 Mar 2021 at 9:27am
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Titanium
Titanium


Joined: 14 Oct 2013
Location: Franklin
Status: Offline
Points: 11987
Pretty much a 'claytons' capital gains tax.
 Giving something a different name doesnt change the essence of what it actually is.

....interest payments being tax deductible as a "tax loophole" was an outright lie. Thumbs Up
Every other business in NZ, including commercial property investors, can treat interest payments as tax deductible so why single out one business over any other for a tax grab?  Maybe business should be worried about their future tax plans.

This whole issue sets a very scary warning and president .

And no we dont own rental properties and never have.
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