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"Just days after Reserve Bank governor Alan Bollard's unexpected intervention in the currency markets, the bank has taken the unusual step of offering detailed suggestions on how government policy could dampen the overheated property market.In a submission to the commerce select committee's housing affordability inquiry, the bank said government might want to consider introducing a capital gains tax on rental properties, and better controls on immigration."
- Sunday Star Times, 17 June 2007
1 comment:
Obviously these are all much better options than actually policing the real estate agents and their propensity to inflate prices and the value of houses.
I know they were suggesting regulating the industry but perhaps something more drastic like limits on the maximum percentage over a property government valuation.
All increasing interest rates of instituting a capital gains tax does is move the divide and shift the market.
They have capital gains tax in Australia and that hasn't done too much to stagnate the house prices. or for that matter in India too.
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