Property Market Gets A Yank On The Handbrake

The government has introduced a capital gains tax on residential property holdings for buy and sells within 2 years. Exemptions mean owner occupied housing is unlikely to be affected but the eye opener is that all non resident tax payers will now have to register with IRD and open an NZ bank account. Non resident purchasing of property here just became distinctly less attractive i’d imagine.

The odds of a OCR reduction next month have shortened considerably as result of the 2 big recent property announcements.

ANZ Bank has cut fixed interest rates today. 1,2 and 3 years fixed now @ 5.59%.