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1 in 7 Akl houses now going to big property speculators

Speculators are running riot in the Auckland housing market making life tougher for first home buyers, says Labour’s housing spokesperson Phil Twyford.

 Newly released data from Core Logic shows a 40 per cent increase in the share of house sales going to investors who already own five or more properties. Nearly 6000 homes were bought by speculators in this category in the last year, out of 45,000.

 “National has refused to shut down their speculator mates, allowing them to make a killing in a rising market at the expense of first home buyers. 

“Speculators have leveraged up, with the help of tax breaks and the absence of any effective tax on capital gains. Now one in seven sales is going to speculators with five or more properties. Nearly half of these homes went to people who already own ten or more properties.

 “It is time the Government finally stood up for first home buyers instead of encouraging the Auckland real estate market to behave like a giant Ponzi scheme. Speculators are driving house prices up and home ownership rates down. 

“Labour will change the law so a speculator who sells a rental property within five years will pay income tax on any capital gain – no ifs, no buts. We’ve signalled we are going to shut down the tax breaks that allow speculators to write off their losses on rental properties by paying less tax on other business activity. 

“Last year property speculators pocketed $650 million in tax breaks – a massive subsidy for speculation – while everyone else got up and went to work each day to pay their taxes. This has to stop,” says Phil Twyford. 

 

Multiple property owners residential sales over the last 11 years in Auckland Super City

 

   

Year

   

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

MPO 2

Share of all sales

11.4%

11.4%

11.3%

12.0%

12.2%

12.2%

12.2%

12.5%

12.3%

13.3%

13.0%

13.0%

Number of sales

    5,806

    5,416

    5,740

    3,353

    4,033

    3,567

    3,899

    4,818

    5,283

    5,175

    5,789

    3,241

MPO 3-4

Share of all sales

9.0%

8.7%

8.7%

9.5%

9.4%

9.4%

9.7%

9.9%

10.1%

11.1%

11.2%

11.4%

Number of sales

    4,422

    4,033

    4,263

    2,639

    3,030

    2,646

    3,008

    3,736

    4,233

    4,212

    4,885

    2,778

MPO 5-9

Share of all sales

5.7%

5.4%

5.3%

5.9%

6.2%

6.0%

6.0%

6.0%

6.7%

6.5%

7.2%

7.5%

Number of sales

    2,701

    2,356

    2,564

    1,541

    1,957

    1,633

    1,775

    2,231

    2,714

    2,435

    3,080

    1,804

MPO 10+

Share of all sales

4.2%

4.4%

5.8%

6.3%

4.7%

6.6%

5.7%

4.7%

6.7%

7.0%

7.1%

7.3%

Number of sales

    1,784

    1,796

    2,240

    1,378

    1,310

    1,398

    1,480

    1,628

    2,275

    2,190

    2,816

    1,647

MPO Other

Share of all sales

4.0%

3.8%

3.6%

5.0%

4.1%

3.9%

4.1%

3.9%

3.4%

3.6%

3.3%

3.8%

Number of sales

    1,665

    1,430

    1,375

       978

    1,029

       847

       997

    1,153

    1,138

    1,022

    1,131

       691

‘MPO other’ includes, but is not restricted to, those who may purchase a property with two separate titles at the same time, or those purchasing in the area for the first time. We put them into the ‘other’ category as the data is not ‘clean’ enough to confidently put them into one of the other groups.

 

Please be sure to reference CoreLogic for any use of the data.