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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General

The housing market will be a particularly hot topic of conversation at the start of this week after the head of ASIC, Greg Medcraft was quoted in an article over the weekend in the Financial Review stating that house prices across Sydney and Melbourne have all the hallmarks of a bubble and warned investors “against borrowing to invest in the heated sector”.

This warning comes after the NZ Government announced it will impose capital gains tax on residential investment properties sold within two years – while a seller's "main home" remains exempt.  The NZ government is also investigating an additional withholding tax on non-resident (overseas) property investors.

The question is whether or not our regulators will introduce similar “macro-prudential measures” to curb the property boom. For now though it appears to be relying on some clever “jaw-boning”.

Source: Rural Bank

 

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