Quote Originally Posted by In4a$ View Post
Not just a Capital gains tax, Govt needs to remove all incentives to invest in residential property. Since Govt introduced the min 20% dep for 1st home buyers, the 3 house sales in my street have gone to investors at premium prices as rentals, would rather have seen home owners buying. These knobs should be investing in something more beneficial to the country, commercial property / shares etc. Leave the houses for families to buy and live in.
Labour's CGT will catch many assets as well as residential property - shares, most businesses and farms for example.

As to incentives for residential property - what are they do you think? Not tax incentives, according to the IRD.

Why should there be different rules for businesses owning rentals compared to businesses owning say commercial buildings?

As to the 20% LVR, it is clear that banks have been too restrictive and are now loosening up on this. And how do you know that investors paid premium prices in your street? Do you mean they paid more than others were prepared to pay? The vendor has skin in the game too - do you think they should be forced to sell more cheaply depending on the intention of the buyer? A very slippery slope. And surely you are aware that investors usually make their money when they buy, as they say, so they are not going to overspend unless they have other reasons to buy.

There has been a lot of hype politically and in the press about house prices mainly in Auckland, the rest of the country not so much. Suggest you don't buy uncritically into it.