If you own your own property, how can you pay tax on it? It is an unrealised gain. If you sell it within 5 years and make a profit in excess of any costs to renovate the property, then that should be taxed. In many areas of New Zealand we have people who own their own home, and through no fault of their own, their house prices have increased dramatically. Many of these people are already living on the breadline, and you propose to tax them for the unrealised gain in their houses price? OK, so you try to squeeze money out of these people, who don't have any money to start with, but have an expensive property. What happens when the prices go down? Can they get a refund? It's a stupid policy and will not hit speculators very hard at all. A capital gains tax will hit property investors in the pocket. I will not vote for you, if you continue with this absolutely stupid policy!