housing tagged posts

NZ Housing is Overpriced

January 23, 2012 New Zealand Finance

Housing prices in New ZealandHousing in New Zealand is severely unaffordable, with property prices being up to 6.4 times higher than the average salary.

On January 23rd Demographia, an international think-tank, released the latest edition of the annual “Demographia International Housing Affordability Ratings” report, containing an analysis of housing affordability around the world.

The study compared the median house prices in a given market area with the median household income levels in the same region. According to the published results, housing prices in New Zealand are severely unaffordable, and Auckland is the least affordable region, with the average house price being approximately 6.4 times higher than the average pre-tax salary...

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NZMEA Calls for Capital Gains Tax

January 27, 2009 New Zealand Taxation  No comments

The New Zealand Manufacturers and Exporters Association (NZMEA) is calling for implementation of a capital gains tax in New Zealand to ease the house affordability situation.

The renewed, but not original, call for a capital gains tax comes after the release of the 2009 International Housing Affordability Survey, by the website Demographia. The results of the survey place New Zealand housing as the second most unaffordable in the world. While the website pushes its own agenda and attributes this to housing and land restrictions are to blame, the NZMEA are claiming it is due to taxation issues.

The NZMEA believes that capital gains tax, which in this case would tax any profits attained from the buying and subsequent selling of a home, would encourage investors into productive investments...

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