“The government should allow existing policies to settle”
Hamish Patel (pictured, top), director of MortgagesOnline.co.nz, and Vijay Gounder, a mortgage adviser for Loan Market Remuera, agree that frequent policy changes create uncertainty for borrowers, advisers and developers alike.
So rather than introducing another wave of reforms, Patel says the government should allow existing policies to settle.
“We’ve already seen the changes in planning deliver a lot of new housing, and in the big city centres that’s helped keep prices subdued – that’s a real positive for first-home buyers, given the extra supply now available to them. But some stability in planning rules would help developers plan ahead,” says Patel.
However, as developers continue to face rising infrastructure costs, council charges and water fees, Patel believes these will ultimately feed through into the price first-home buyers pay. “I’m not sure exactly what the fix looks like, but fewer planning rule changes – and more certainty about what’s actually possible – would make a real difference.”
Gounder shares a similar view when it comes to investment settings. After years of adjustments to interest deductibility and the bright-line test, he believes the market needs consistency rather than another reset.