A lot is happening that effects or will affect the residential real estate market. Some is good, some not so good.
Proposed Capital Gains Tax - According to BNZ chief economist Tony Alexander the raising of the personal tax to 39% and introducing a 15% capital gain tax would:
- Discourage people from working harder to earn extra income.
- Discourage top performers coming to New Zealand.
- Encourage top performers to leave New Zealand.
- The difference in the business tax rate of 28% and the 39% personal top rate proposed will mean “a healthy investment” in people’s time restructuring to avoid tax. The policy will worsen our long term growth prospects.
- Cause a greater shortage of houses and so higher home prices and higher rents.
- Mean the government has to pay even more in rent subsidies as rents rise.
Reference: BNZ Weekly Overview 14/07/2011
Meanwhile the economy is improving and has performed better than previously thought. Job growth is strong and house sales numbers are improving especially in Auckland.
As far as Waitakere City is concerned we are definitely off the bottom and improving in terms of numbers of house sales and prices seem to be slowly rising too.
No comments:
Post a Comment