Chief Executive Ashley Church from the Property Institute of New Zealand has said Labours proposal to scrap negative gearing for property investors could risk making the nations housing crisis worse.

Church said removing the ability for property investors to claim tax losses is a direct attack on Mums and Dads who are trying to provide for themselves in retirement.

If the policy is successful, Church warned it would have a “dramatic and rapid effect” on the availability of private rental accommodation in New Zealand.
“Your typical Property Investors are average Mums and Dads – not wealthy cigar smoking fat cats – and their ability to purchase an investment property is usually leveraged against the equity in their home and their ability to claim losses in the early years, like any other business does,” said Church.

The shortage of houses in Auckland is at crisis point, there’s a need for smart solutions that harness the power of Mum and Dad investment to get those houses built quickly.
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