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First time buyers hit hard in New Zealand with tax increase

According to a report that was issued by the Department of the Prime Minister and Cabinet, the move to increase the top tax rate to 39c may boost the investment housing, but it may also be a disadvantage to those who are aspiring to get into housing.

The report also points out that the median priced house would increase by NZ $25,000 for an investor who is able to deduct losses from the rental properties they incur, but for the same home purchased by a homeowner, the large sized mortgage needed is too difficult to handle.

The department working on this report has the goal of working to find new ways to make New Zealand property more affordable to first time home buyers and is a group labelled House Prices Unit.

In other news, New Zealand property is attractive, and readily sought after, by UK investors. One of the largest reasons for purchasing property here stems from the value as well as from the breathtaking views that the country offers.

New reports show that the British love the country and are investing in second homes here more readily than ever. Some areas give investors an amazing view while providing them with a not so affordable investment. About 1900 square metres here with no house on it will run about £280,000 in some areas.

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