New Rules To Calm House Price Inflation
The New Zealand government recently announced new rules for the property market in order to calm house price inflation in Auckland, including a 33 per cent tax on any property that was bought or sold within two years.
The Australian Reserve Bank has indicated that they will not be following suit and there is no need to introduce these tough New Zealand rules to help control the Sydney and Melbourne housing boom.
Phillip Lowe from the RBA has backed Australia’s current regime and regulatory approach and has noted that the Australian Prudential Regulation Authority’s recent actions, including a review of bank lending standards for property investors and helping control the markets prices.
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