Association concerned about lack of participation
The Auckland Property Investors’ Associated Incorporated (APIA) is calling on property investors in Auckland to participate in the government’s consultation on the design of the interest limitation rule and additional bright-line rules.
The government has released a consultation paper after clarifying that new builds are exempt from planned changes to residential investment properties’ tax treatment. It is considering exempting subsequent owners from the interest changes and how long any exemption might last.
However, APIA president Kristin Sutherland said the association is concerned about the lack of investor participation in the consultation process.
“Anecdotally, we are seeing some level of apathy. That’s understandable, given how alienated and shut out investors have been by this government and from its housing policies,” Sutherland said. “Many investors have simply given up trying to be heard.”
However, Sutherland pointed out that investors’ insights and knowledge are crucial in helping the government achieve housing affordability through the interest limitation policy.
“Affordability is so fundamental and urgent for our housing market that we’ve all got to do our part to get it right,” she added. “Time and time again, we see ambitious agendas being let down by unintended consequences and a wilful disinterest, if not ignorance, at understanding how the market is motivated.
“The sheer number of design aspects that are being consulted on relegates interest limitation to being yet another haphazardly cobbled together policy. It is clear that the government is going to have to rely heavily on the submissions it receives if it is serious about housing affordability. This gives property investors, those who have skin in the game, a really good opportunity to share their perspectives and limit the negative impacts this policy will have on the housing market.”
Revenue Minister David Parker said the proposal to exempt new builds should “help boost supply by channelling investment towards increasing housing stock and away from direct competition with first-home buyers and owner-occupiers for existing housing stock.”
The consultation paper focuses on finalising the detailed design of the rules. The submission deadline is July 12, 2021.
APIA reminds submitters to copy opposition housing spokespeople into their email submissions: Nicola Willis of the National Party ([email protected]) and Brooke van Velden of ACT ([email protected]).
