bright-line test

PHOTO: No auctions have been brought forward to settle sales before the changes took effect, a Harcourts business owner says. Photo: RNZ / Maree Mahony

On Tuesday the government extended the test to 10 years for properties bought on or after 27 March 2021, but also gave an exemption to new build houses, which will remain at five years.

Harcourts Wellington partner Antonia Brown said the announcement had done little to change buyer and seller behaviour so far, with no auctions brought forward to settle sales before the changes took effect.

“We did suggest it to a few but most people in the market are in it for the long haul, so we didn’t tempt anybody to do to that… we tried though.”

Property investor Steve Goodey agreed, saying most investors had a long-term portfolio plan, but the policies had caused some to reconsider.

“Some have cancelled their plans to sell properties, a lot of people are looking at when they purchased their property with this new bright-line test issue.

“There’s a lot of confusion out there though.”

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