Interest in investment property is back to ‘historically high’ levels, underlining the need for a capital gains tax to get investment money into productive businesses, says Labour’s Finance spokesperson David Parker.
“Interest in investment and rental property is back on the march and is again the most popular investment option in Auckland and increasing across New Zealand, according to ASB.
“A capital gains tax is needed to quell a prolonged increase in property speculation that will only continue the trend in declining home ownership.
“We aren’t going to grow as a country if we keep putting our investment money into property speculation because of a tax bias that hurts our productive exporters.
“We should encourage New Zealanders to invest in areas other than property, in productive sectors that will export more. This creates jobs, helps increase wages and limits our reliance on overseas lenders.
“A capital gains tax will encourage investment towards good, productive businesses while also helping to limit the increase in house prices, making homes for Kiwi families more affordable.”
14 November 2012 MEDIA STATEMENT