Call for no GST on new home builds
Major home builder G J Gardner has welcomed the Reserve Bank’s turnaround on mortgage restrictions for new house builds, but says the Government should act too.
Grant Porteous, managing director of the firm’s master franchise, said the central bank’s decision to exempt house builds from the clampdown on low equity mortgages would ensure the residential building recovery would continue.
“We’re extremely happy to hear of the changes and it is not something we had anticipated to happen.”
However, if the Government was really serious about housing affordability, it should also consider a GST exemption, or reduction for new homes, he said.
“For example, if the average Kiwi purchases a house worth $600,000, they end up paying $90,000 in GST.”
(Note carefully that the question of GST on new-builds was raised by me a long time ago ago. See for yourself: