Greens propose capital gains tax

The Green Party has urged the government to investigate introducing capital gains tax on all property but the family home in a bid to discourage foreign investors from buying New Zealand property. Green Party Housing spokesperson Sue Bradford argues “foreign speculators” are stealing the dream of “thousands of young and less well-off New Zealanders” of owning their own home.

Thursday, August 10th 2006, 12:00AM

by The Landlord

The latest Wizard Home Loan statistics, she claims, show home ownership has dropped by 21% for those with personal incomes under $40,000 a year, and by 12% overall. Bradford attributed the drop to a “free-for-all foreign-owner spend-up”.

“New Zealanders, particularly young people and those on low incomes, are unable to compete in a housing market that has been artificially inflated, particularly by wealthy, overseas-based investors who have been buying up our land and houses,” says Bradford.

“The Green Party has no problem at all with foreigners wanting to buy residential property here as long as they are prepared to live here for at least six months of each year. What we don’t want is for this country to become just a holiday home for billionaires or an investment opportunity for overseas landlords.

Bradford also called on the government to “soften” the housing market by increasing the stock of public housing so “owning private rentals becomes a less attractive option for investors”.

“We also support introducing more government moves to increase the number of low and middle income people who own their own homes,” she says. “We don’t want to live in a country where the dream of home ownership can only come true for the rich and for foreign investors.”

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