The latest on negative gearing
PM Ardern pledged to end negative gearing and just released Labour’s official policy assessment. What did it say? Property investors hoping for capital gain will be worse off and people struggling to buy a first home should find it easier. Plus there’ll be an extra $190 million p.a. in government coffers.
NZ investor lobby group, the Property Institute, warns their fleeing investors will worsen an existing rental crisis. But, other commentators expect little or no impact; other than to level the playing field for newbies.
Worldwide historical data is thin, so saying goodbye to negative gearing comes with uncertainty. But, when Australia banned it from 1985—87, Sydney rents went slightly up, and everywhere else stayed flat or fell. Go figure…
If you, or your clients, want to learn more about what this could mean for them, please get in touch.