I understand the need to drive investment out of property and into other areas of the economy to grow jobs and wages through smarter investments. I understand what this policy could achieve, but at it's simplest this targets one of the fundamental dreams of most Kiwis - to own a home. For this reason I see a lot of people being turned off by the policy, which is a shame. There are a lot of people out there who own homes and have no idea where their money would be better invested. You can't tax peoples asset/home and not provide them with a better option, they'll end up just spending their money on other junk rather than saving/investing or creating any other wealth at all.
I think a more realistic goal would be to leave the home and batch out of it - at least for now. While a lot of people don't have either, there are a substantial amount of people who do - and it's not just the rich and wealthy that have two properties. I think a better idea would be to tax those who go past this, the speculators, developers and landlords. More than two residential properties enables people to still strive for that Kiwi dream, but discourages people going past this, driving prices up.
Tighter controls over who can buy property would also help. Obviously residents and citizens have that right, but I think we can come up with a smarter way to determine which foreigners are eligible. Perhaps it's a combination of how much tax they pay here as well as "areas of national significance". This could be determined by the demand in particular areas, which could be offset by building a new dwelling (not rebuilding/renovating)?
People who are actively investing in property as a primary means to create wealth are the people we don't want buying property. They are the ones looking for the opportunity, we should discourage them from looking at property and expose them to other avenues to grow their wealth. We shouldn't be trying to stop John and Fiona from Otorohanga who work as a Shepherd and at the local PaperPlus respectively, from buying their own home to raise a family in. Not now anyway. The vast majority of people need to be educated about this over time, not told they're doing the wrong thing and scorned for not caring enough about other people.
I like the idea in principle, but a longer term view should be taken. Softly, softly. We want to teach people to fish first, then get out of their way and watch them catch their fill. Otherwise this will never get off the ground unfortunately.
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