What does the new government mean for our local market?
Change is inevitable but progress is optional. Each of us is responsible for our own progress.
In the words of my client, Velma, who is off to retire in Papamoa, "Shannon, I have been through many changes in governments, property markets and so forth over the years, and life's too short to worry overly about these things and then put me off from moving to where I want to be.''
And Velma is right — regardless of which party or parties are governing, I still have a job to do for you, people still want to buy houses and I'm sure you still want to get to where you want to be when the time comes.
What does the new government mean for our local market? Well, it's too early to tell until we see what policies the coalition partners have agreed on. I'm guessing immigration and foreign ownership will be in the line of fire, so there may be some impact there.
In case you didn't check them out prior to the election, I've linked to a list of Labour's proposed housing policies below.
Ban foreign speculators from buying existing homes
Labour will ban foreign speculators from buying existing New Zealand homes. This will remove from the market foreign speculators who are pushing prices out of reach of first home buyers.
Tax property speculators who flick houses within five years
Labour will extend the bright line test from the current two years to five years. This will target speculators who buy houses with the aim of making a quick capital gain. Current exemptions from the bright line test will continue.
Property speculators will no longer be able to use tax losses on their rental properties to offset their tax on other income which gives them an unfair advantage over people looking to buy their first home.
Build more affordable houses ...