3 Prong attack from the government!
Auckland House Buyers discusses the effects of the new Property Legislation
October 2015 heralded the addition of some fresh legislation that has created some negative feelings towards buying and selling houses. The additions include increased LVR of 20% first home buyers and 30% for investments, IRD details and the Bright Line Test. Not only does it make it difficult for people to save for their first homes it is now increasingly difficult for investors to expand their property portfolio. Volumes have dropped in a reaction to the governments’ tight hold on the property market. For those trying to secure their future with investment properties they are finding it more and more difficult to exit the rat race. Paying for a mortgage and trying to save the 30% for an investment is making it unachievable for most. On top of the increased upfront payment the Bright Line Test taxes the on-sell of a house within 2 years of settlement has significantly reduced opportunity towards financial freedom.
Auckland House Buyers – December 23, 2015 – Kathleen O’Kane