The issue of land banking
Land banking is a serious problem in Auckland, including the Mount Albert electorate and it's now pushing rent and house prices up across NZ. Why would you bother building a house and renting it when you can get such a good return from doing nothing? We need to stop land prices going through the roof and get developers building. TOP's tax reform policy will do exactly that.
John Hurley commented 2017-02-19 09:28:08 +1300Hasn’t all this been covered by the Tax Reform Group? Why can’t we just go with that?
Oliver Krollmann followed this page 2017-02-18 10:40:30 +1300
John Robson commented 2017-02-16 23:13:57 +1300Whilst TOP has advanced an argument for their (asset) tax policy having the impact claimed – they have NOT advanced EVIDENCE.
And having spent the last three months researching the issue, I believe the reason they have not advanced evidence is because there is NO conclusive evidence that an asset tax alone will have the impact they claim.
To be very clear – I support an asset tax – but only as part of a suite of tax reforms which would include capital gains tax, inheritance tax, land tax, and more progressive and higher income tax rates.
And even this suite of tax reforms would be insufficient to create the fairness that TOP claim they want – and I know I want.
There would still be the need to significantly reform the ‘rental’ market – to make the rental market a more attractive alternative.
And they would need to restructure local government – and its financing – to help address land supply issues.
Offering simplistic, silver-bullet, ‘non-solutions’ is insulting.
Even more so when there are real solutions available.
Steve Cox commented 2017-02-16 19:06:35 +1300A highly leveraged land banker is going to be virtually untouched by TOP’s tax reform policy.
Any effect is going to be coincidental. If the policy slows down land values overall then obviously the land banker’s profit will be less, but if the prices continue to rise then the policy will be ineffectual.