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More speculators own multiple properties

NZ NewswireNZ Newswire 4/08/2016

He says the speculators are laughing all the way to the bank and the government refuses to crack down on them. © Getty Images He says the speculators are laughing all the way to the bank and the government refuses to crack down on them. The number of speculators with four or more properties is increasing, Labour says.

Phil Twyford is citing market research issued by Crockers Property Group.

He says it shows that since 2014 the number of investors with four or more properties has increased from 22 per cent to 29 per cent.

The number with five or more properties has increased from 15 per cent to 17 per cent, and those with eight or more is up from six per cent to nine per cent.

Mr Twyford says the speculators are cashing in on the housing bubble, using tax breaks to help them buy multiple properties.

"Treasury data released under the Official Information Act, and obtained by Labour, shows investors pocketed $650 million in tax write-offs over the last year," he said on Thursday.

"This, along with skyrocketing house prices, has turbo-charged this speculative frenzy."

He says the speculators are laughing all the way to the bank and the government refuses to crack down on them.

"This why Labour has signalled it will move against negative gearing - the practice that allows investors to write off losses on rental properties against other taxable income," he said.

"If we don't squeeze the speculators out of the market we'll never rein in house prices - negative gearing is a massive taxpayer subsidy."

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