Originally Posted by
Louisphan
Ten Year Bright-light test is fair enough in my opinion. However the rest of the new rules will only damage the Property Investors but wont help the first home buyer.
Firstly, If they think interest deduction is not fair for the home owner, just let them can claim interest expenses in their income. It is more reasonable than make the property industry cant claim the interest while the other industry still can. In the end of the day, people do not invest in housing market because the returns is low, the property investor take the risk to get low annual returns so they get higher capital gain is reasonable.
Secondly, the price cap is so stupid in my opinion, why the first home buyer only can buy the house under the cap which is so low at 700k and 650k in Wellington? Why they cant get the 10% deposit to buy the more expensive house (with more potential) rather than just apartment or townhouse? The rules look pretty and nice but it actually lock down the potential for the low income people became more heathy in the future.
There are few plans and rules they can do and adjust to solve the housing problems rather than current new rules.
+ Most important is building more houses (they failed it but need to focus on it);
+ Secondly, if its too hard they can build some more motorway to north and south where people feel easily to commute from long distance to main central of Auckland, Wellington or Hamilton;
+ Thirdly, price cap must be increased to at least 1 million or even removed for first home buyer and the deposit requirement also can be reduced to 5% or removed (but once in life only, the next one's price cap and deposit requirement will be back to normal).