Property expert: Investor domination 'unhealthy'

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Newly released figures show a dramatic increase in investors purchasing South Auckland homes and central suburb apartments.

The data, complied researchers at the University of Auckland, shows an 18 percentage point increase in investor purchases in the suburb of Otara between 2010 and the first half of 2015.

Property commentator Olly Newland says it is unhealthy for investors to dominate the market to such an extent.

"First home buyers and the Mr and Mrs Smiths of South Auckland haven't got a show of buying their own home because investors are snapping up everything," says Mr Newland.

Property expert: Investor domination 'unhealthy'

In 2010, 62 percent of house purchased in Otara were bought by investors -- in the first half of 2015, it had risen to 80 percent.

"We don't want a society which is completely divided into renters and owners only," says Mr Newland.

"It's not the way it's supposed to be, it's not the way I understand it -- I think it should be a level playing field for both investors and homeowners."

The increase is not confined to South Auckland, with an upsurge in investor purchases of apartments also taking place -- particularly in Newmarket and Mt Eden.

Property expert: Investor domination 'unhealthy'

While the Government is warming to the idea of a land tax, Mr Newland says there is no way to stop the investor market domination.

"All you can do is help the first homebuyers and the genuine homebuyers to give them an equal chance to compete with investors," says Mr Newland.

"There's talk about taxes for investors, capital gains tax which we have already a small capital gains tax, stamp duty, there's also talk of putting GST on investment properties because they're regarded as being bought for the purposes of business.

"That would be an expensive exercise for investors if GST was applied to second hand homes. It's unusual that GST is charged on new homes and not on second hand homes that go to investors."

Newshub.

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