The association representing Kiwi landlords is disappointed the Labour Party is misleading the public about their proposed capital gains tax, which they plan to apply to all asset classes except the family home.
Mr Cunliffe told TVNZ's Q&A programme it's 'lunacy' that property speculators get tax-free capital gain.
“It is wrong to say that property speculators or traders get tax free capital gains. Those who buy and sell property are already taxed on the income from this activity. Kiwi landlords are not property speculators." says NZ Property Investors’ Federation Executive Officer Andrew King. “They are ordinary Kiwis offering a service to people who want somewhere to live, but don't always want to invest in bricks and mortar".
There are hundreds of thousands of mum and dad landlords in New Zealand. They are incorrectly being blamed for high house prices. The Labour Party is sorely mistaken if they think a capital gains tax is the solution to New Zealand's housing woes.
"Landlords are not the problem, they provide a valuable service. Without mum and dad landlords, many Kiwis would be stuck. Where should they live while saving for a house deposit? What if they don’t want to buy a home, but rather rent and spend their savings on other items? What if they’re studying and only want to live somewhere for three or four years?," says Mr King.
NZPIF Media Release 13 April