National needs about $5 Billion in foreign property sales a year to reach its target. Prior to the 2018 ban, China (which likely can’t be taxed anyway due to FTA) made up 40% of an approximately $3.75 Billion in total sales. For Nationals numbers to work, the market would have to grown significantly, while leaving the vast majority of properties un-taxed. Further, they have not accounted for any drop in sales due to the tax, global downturn, or any other factors.
It’s pure fiction and smoke and mirrors.
If they genuinely can’t tax Chinese foreign buyers more than NZ residents, that’s very embarrassing for National.
@Rangelus we are now in post truth. It doesn’t matter that the policy cannot be implemented. What’s important to National is how the policy makes you feel.
I mean, it’s not like Labour are fulfilling their promises. How’s Kiwibuild and all that light rail coming along?
@Ilovethebomb I guess choose your poison. One side underachieves to your expectations, the other never intends to try.
I was thinking about this tax joke yesterday while watching a video on the huge pressure’s* China’s domestic real estate market is under currently.
Given how large that market is, and how much debt is held in it - its kinda hard to imagine Chinese buyers will even be back at 2018 levels, especially if their economy suffers even more wobbles.
*A lot of which the video argued was demographic and unlikely to be reversed any time soon due to the 1 child policy which was held onto for too long.
