Very few property investors will have been sad to see the demise of the proposed Capital Gains Tax (CGT). In fact tenants should also be celebrating the axing of the CGT for its introduction would almost certainly have seen a decrease in the number of available rental properties across the country as well as rental increases. Property commentator Ashley Church was quoted as saying that the “decision is a victory for common sense over ideology”. This Government needs to realise that it needs the private investor sector ‘on board’ as private investors make up about 85% of rental property ownership. Alienising private property investors will in the end only make it harder for tenants to find affordable rental properties throughout NZ, and there is plenty of evidence that there are severe rental shortages in all of the regions with ever increasing rents. If the Government wants to help ease the rental shortage and help make rental properties more affordable they need to start supporting private property investors.
Capital Gains Tax National Propertyscouts
Goodbye CGT ..... for now at least