Capital Gains Tax, what CGT? For the vast majority of Kiwis there is no change. The IRD has always had the power to tax traders. The latest Reserve Bank restrictions on borrowing will do little to cool Auckland and a rate hike is not on the cards. Auckland looking good for the foreseeable future methinks.
The Government has moved to tax overseas buyers and that’s quite right in my opinion. For locals who trade it has always been a taxable income and the IRD now have a few more million to chase.
Property investors who hold are not being targeted and property investment is still the ‘safest’ way to provide for retirement.
We have noticed a big rise in inquiries for rental property purchase in Hamilton and Tauranga with Wellsford and Helensville appearing too. Banks can lend more outside of Auckland in terms of high loan to value mortgages and we still have 90% interest only or property investment in many locations.
As always, whatever the situation give us a call 0800 LENDER (536337) we will do our best to provide a solution to your mortgage needs.