How Govt's housing policy could increase new home prices

Author
Newstalk ZB,
Publish Date
Wed, 24 Mar 2021, 2:46PM
Photo / File
Photo / File

How Govt's housing policy could increase new home prices

Author
Newstalk ZB,
Publish Date
Wed, 24 Mar 2021, 2:46PM

A tax adviser thinks the Government's housing policy will push up new home prices.

New investors will be stung under the bright line test if they sell an existing home within 10 years.

They also won't be able to claim home loan interest repayments as a business expense.

Greenmount Advisory managing director Bruce Bernacchi told Kerre McIvor those things won't apply to new houses.

"A lot of new builds are going to be targeted at first home buyers, or lower income buyers.

"I think it will have the unintended consequences of forcing the prices up."

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