New investors and property speculators likely to suffer under new rules
The implementation of these policies has been confirmed by a party spokesperson, with their position on bright line extension being clarified on The Nation by Finance Minister Grant Robertson. They were both key housing policies for the Labour party during the 2017 election campaign.
Andrew Bruce from Auckland Property Investors Association says that these changes will have differing levels of impact on investors depending on the length of time they’ve been investing, and the type of investment approach that they have.
“The changes to negative gearing will have a quite significant impact on those at the beginning of their investment career,” he says.
He continues by saying that new property investors are often vulnerable when it comes to cash flow, and negative gearing enabled them to use losses on one property to offset tax on other income.
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