Clueless Government Strikes Again
Housing is a problem if you say it is. The Labour Government said it was a problem and that they will fix it. They then turned their problem into an even bigger one – then made a total hash of trying to fix it.
The first thing they announced today is some John Key Policy from back in 2010, which is creating an infrastructure fund to accelerate creating infrastructure, so hardly generational change.
They announced extending the bright line test, this is a classic case of doing the same thing expecting a different result.
The real interesting one, which is as misguided as a blind seeing eye dog, is the removal of deductibility of interest. They have just punished every genuine landlord whilst not really having much affect on speculators.
This is the most bizarre of the measures and reeks of desperation.
The Government talks of concerns of a housing bubble and then create one to pop.
It will be interesting to see what some of the other property commentators say on this move