When asked by a journalist yesterday if any of Labour’s housing announcements would target investors, Andrew Little clarified that they would target speculators, "those looking to for short term gain in the housing market."
“The Labour leader shows that he knows the difference between a property speculator and a property investor” says Andrew King, Executive Officer of the NZ Property Investors’ Federation.
A property investor provides people with rental accommodation. They are not in the business of trading or speculating in property.
We have seen many examples recently of people living in overcrowded homes, or garages and cars. This clearly demonstrates that we need more rental properties for these and many other people to live in.
There has been speculation that Labour will increase the term of the Bright Line Test as part of their housing policy announcements this Sunday. Little's comments suggest this will not happen.
Although the Bright Line Test affects property investors, it is clearly aimed at insuring property speculators and traders pay their fair share of tax. The NZ Property Investors' Federation supports this.
The two year Bright Line Test clearly holds to account those looking for short term gain in the housing market, Labour’s target group.
However any increase in the term would change the focus of the test to rental property providers. Ultimately this would have a flow on and negative effect for tenants, which Labour would obviously want to avoid.
For further information please contact:
Executive Officer, NZ Property Investors’ Federation
Mobile: 021 216 1299