The issue of financialisation and the challenges of moving away from this were noted by then-UN Special Rapporteur for Housing Leilani Farha during her visit to New Zealand in early 2020 – “the crisis has its roots in a historic nearly exclusive focus on homeownership which, in more recent years and particularly since the Global Financial Crisis, has translated into housing having lost its function as a place to live, and instead has become a speculative asset.” The extension of the bright-line test from five to ten years falls short of the 20 years recommended by the tax working group, but is a moderate improvement, as is the phased removal of interest as a taxable expense.
Speech to the Palmerston North Housing Forum 2021
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How the new housing policy could affect the homes we design
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