PHOTO: The Finance Minister says the policies will put downward pressure on the housing market. Source: Q+A
Finance Minister Grant Robertson is confident that the range of policies the Government outlined this week will put “downward pressure” on an “unsustainable” housing market but he admits that, when it comes to the impact those policies might have on rents, he “can’t predict exactly what will happen”.
In a bid to tackle the overheated housing market, the Government announced on Tuesday it will increase the time investors have to hold on to a property to avoid paying tax – the so-called “bright-line” – from five years to 10.
It will also remove the ability for landlords to claim a tax rebate for the interest they’ve paid on their mortgage.
A $3.8 billion “accelerator fund” will help with infrastructure for new housing. The cost of roading sewerage and connections for new subdivisions have often been cited by developers as a significant barrier to building more houses.
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