Can the three-party meeting or today’s home purchase and tax cuts for overseas buyers be preserved? | New Zealand Real Estate

Compiled by Danielle, New Zealand Chinese Herald

After the official results of the general election were announced, the three parties have been negotiating to form a coalition government. National leader Christopher Luxon, ACT leader David Seymour and New Zealand First leader Winston Peters have yet to meet at the same time.

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According to Newshub, Seymour said that the three-party meeting is expected to be held today (November 14), and all three of them are now in Wellington.

According to 1 News, former central bank economist Michael Reddell believes that the National Party’s overseas home purchase policy may be shelved, and the future of tax cuts for the middle class is also uncertain.

Luxon hopes to overturn the ban on overseas buyers, allowing overseas buyers to pay a 15% tax on properties above $2 million.

But Reddell said the plan seemed unlikely to go ahead.Peters made it clear during the general election campaign that he opposed overturning the ban.He was part of the Labor coalition government, which introduced a ban on overseas buyers in 2018.“First Party has always been firmly opposed to opening up investment in these areas, so it is unlikely that it will be overturned.”

National predicts the scheme will bring in an average of $740 million a year.But Reddell also expressed doubts about the figure. “Our modeling suggests it’s about $200 million a year. “Maybe we’re wrong, but National never released their modeling and we have no way to compare the figures. “So the projected tax revenue may not be realized.” , and I suspect the National Party knows that too.”

The National Party has promised to reduce taxes for low- and middle-income New Zealanders, and part of this funding gap will come from taxes paid by overseas buyers.

“National needs to recalibrate its commitments and find new ways to make tax cuts happen,” Reddell added.

What do people in the industry think?

Real estate industry insiders believe that the National Party’s favorable policies may lead to rising housing prices. Real estate agents say there has been a surge in interest from property investors following the election results, and the latest data from QV also shows house prices are gradually recovering.

Agent Ross Hawkins hopes the real estate policy will be implemented and will be very disappointed if there is no progress. “The policies attract high-end buyers,” he said. “They come to New Zealand and can do great things for New Zealand.”

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(Editor: Danni)

Source – New Zealand Chinese Herald