New Infrastructure Costs to be Borne By Buyers
July 4, 2016 New Zealand Taxation
The New Zealand Council for Infrastructure Development is calling for the cost of new housing developments to be passed to buyer, not developers.
In a press release on July 4th the New Zealand Council for Infrastructure Development (NZCID) called on the government to implement a plan for the payment and collection of funds from the newly announced $1 billion interest free housing infrastructure loan.
Over the weekend the government announced its new program which would grant loans to local councils to pay for infrastructure developments to new residential property areas.
The NZCID cautioned that if “development levies” were used to pay for the loans, land developers would end up facing higher risks, and, ultimately, passing on the risks in the form of higher prices to buyers.
However, if the costs were borne by property owners, in the form of area-specific rates, the initial property purchase and construction cost could be lowered by spreading the costs over a longer period.
Photo By: Elliott Brown