If you’re reading this blog you’re most likely a business owner, a property owner, and possibly have kids approaching their first home purchase; and if you are any of these then you are likely a little nervous about this year’s election.
I have lost count of the taxes Ms Adern has mentioned since her coup. There was a tax on water, capital gains tax and a death duty just to name those that are top of mind. What makes most of us nervous is she seems to be doing it on the fly. Almost the Donald Trump approach. Announce new tax, check to see response of the electorate and then modify when smarter more commercial pundits explain the ramifications of said policy. Helen Clark's emergence now that there is a possibility of a winning candidate is also laughable, where was she when Andrew Little was floundering?
A Labour government also means an increase in interest rates which will make business and property sales more expensive.
The business community seems to be in a state of limbo while they wait to see what happens. Bankers have made comment that there is significant enquiry for new loans but limited take up of any approved loan. Desks are piling up with approved files while borrowers wait to see what the actual cost might be for any purchase.
The could also mean carnage in the property market with small builder/developer companies who are holding onto land, hitting the wall when demand reduces and cost of ownership increases.
There are really stupid comments being made, especially relating to house prices. Some commentators are exposing an intervention to drive home values down by 30%. What happens to the young first home buyer couple who have managed to save their 20% deposit and have been in their home for a couple of years, are now 110% geared?
I am sure the banks just write off that 30% equity reduction won't they? I think not.
All I can say is I hope Mr English asks the Socialist party the hard questions relating to their Tax policy in the remaining leader’s debates. Don't let her continue to waffle as she has done and make things up on the fly. What is the Tax policy and where will it be spent? Just the facts and no puffery please.