Which way will the property market go now?

[peetter]

As I been saying all along. The demand is fueled by tax advantages (or lack of income tax) on housing investments. You know the people that have the $ and income that can borrow cheap money.

In addition to a supply problem but the latter above is by far the #1 incentive bar none.

These "tax advantages" are completely normal across most of the world including depreciation on real estate and no ring fencing. The ring fencing actually makes property investing less advantageous compared to business as you can deduct losses on business against your income. I think what you're trying to get to is no CGT. Well for most of those horrible investors, CGT doesn't matter, because they won't sell for decades or they'll just leave it to their children.

You know the #1 problem is not investors, but supply. Saying otherwise is plain lying. There's 20000 people on HNZ waitlist and thousands in emergency housing and you're saying problem is there are people who provide rentals. Most of the investors took a step back to wait for government to reveal the new rules and houses are still flying off the shelves and prices rising.

RMA should have been changed years ago to allow easier and cheaper development. There also needs to be a shift in NZ mentality to accept you can't grow a city without building apartment buildings.