Weekend Herald - - NEWS - Crunch time for Bud­get num­bers

Labour wants to ban for­eign spec­u­la­tors from buy­ing New Zealand homes and make prop­erty buy­ers who re­sell houses within five years pay tax on any cap­i­tal gains earned — up from the cur­rent two years.

The party has set a highly am­bi­tious tar­get of build­ing 100,000 af­ford­able homes over 10 years, 50 per cent of those in Auck­land. Stan­dalone houses in Auck­land, the party says, will cost be­tween $ 500,000 and $ 600,000 while apart­ments and town­houses will be less than $ 500,000. Out­side Auck­land, houses will range from $ 300,000 to $ 500,000.

For renters, Labour will in­crease the 42 day no­tice pe­riod to 90 days, ban let­ting fees and limit rent in­creases to once a year in­stead of the cur­rent half year pe­riod.

Na­tional says it will build 34,000 homes in Auck­land over the next 10 years, 13,500 of th­ese will be so­cial homes and 20,500 “af­ford­able and mar­ket homes”. The party says be­tween 20 and 50 per cent of homes in the lat­ter cat­e­gory would be af­ford­able homes un­der $ 650,000.

How­ever, 8600 ex­ist­ing homes would be de­mol­ished in or­der to make way for Na­tional’s new builds. It is not clear how many homes would be knocked down to make way for Labour’s 100,000 new homes.

Na­tional will also make it eas­ier for first home buy­ers to get a de­posit by doubling the fi­nan­cial sup­port avail­able when buy­ing an ex­ist­ing house. This means a cou­ple will be el­i­gi­ble for an ex­tra $ 10,000 of Gov­ern­ment HomeS­tart Grants, tak­ing the grants to $ 20,000 for an ex­ist­ing home or $ 30,000 for a new build.

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