Stuff
The bright-line test has been doubled in length and tax loopholes have been closed as the Labour Government moves on property speculators.
Demand among home buyers remains strong in Christchurch despite looming tax changes, with price growth easing in the wake of efforts to take pressure off the booming market. Landlords were caught off guard last week when the Government announced it would remove tax deductions for mortgage interest on rental properties, and double the period before a resale triggers the “brightline” tax on a capital gain. Newly built properties are exempt from the changes. Quotable Value’s (QV) area manager for Canterbury, Kris Rodgers, said price growth was slowing and the Government’s announcement could potentially help to cool the market further in coming months.