NZ property market powers past Ardern’s investor tax reforms

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In March two key reforms came into effect designed to take the steam out of New Zealand’s fast inflating property market.

First, the Reserve Bank of New Zealand (RBNZ) reintroduced loan-to-value ratio (LVR) mortgage restrictions, which from 1 March 2021 required both investors and owner-occupiers to hold bigger deposits:

NZ LVR restrictions

Second, and more importantly, the New Zealand Government on 23 March announced major property tax reforms targeted at investors, specifically:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.