Originally Posted by
James108
Agree calling it a loophole is disingenuous but overall very happy with the change, taking the steam out of the out of control house inflation is more important than tax norms. Housing is supposedly a human right and it is and should be a very heavily regulated sector, all levers should be pulled until residential housing delivers an outcome much closer to what society requires. Luckily for those of us invested in Oceania I believe they are doing an excellent job on delivering on their societal expectations of excellent care.
The outcome as I see it will be, downward pressure on house prices, upward pressure on rents (although the additional costs will not be fully passed on). In Auckland after 10 years of increasing the build rate of new dwellings construction has finally started to exceed that required by population increase, I expect this will help reduce upward pressure on rents. Winners are FHB, losers are landlords and lifetime renters. Owner occupiers little impact.
For us Oceania (and SUM in my case) holders I think the 20% increase in house price seen in the last year will continue to flow through the accounts in the years to come. This may be moderated by maybe a fall in the order of 10% (?) over the next few years.