That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
What A 2027 Capital Gains Tax Could Mean For Buyers, Renters, And Investors
Headlines say capital gains on investment property could arrive from 1 July 2027. We dig into what that timing might do to behaviour: investors bringing sales forward, first-home buyers seeing more stock, and renters caught between short-term sell-offs and longer-term holds. Rather than debate politics or deep tax law, we focus on practical consequences you can plan for.
We start by untangling bright-line rules versus a broader capital gains tax and why that difference matters for anyone selling outside the current window. From there, we explore two market paths. Before the start date, a wave of investor exits could lift listings, widen choice, and push prices down at the entry level. After the start date, many landlords may hold to defer tax, shrinking resale supply and nudging prices up. That same dynamic ripples through rentals: fewer ex-rental homes can mean tighter vacancy and higher rents, while a holding pattern may steady supply but still pressure prices if building lags demand.
Fairness sits at the heart of the argument. We talk about why comparing property gains to business profits misses the fact landlords already pay tax on rent, and we highlight who feels the squeeze most—mum and dad investors who rely on one extra property for retirement. Portfolio owners might absorb changes; small owners face real trade-offs. For first-home buyers, this could be a moment to prepare. Get finance lined up early, track comparable sales weekly, and target homes where value comes from fixable issues rather than speculation. For investors, run fresh after-tax models, test hold periods, and plan maintenance and debt settings with realistic rent growth.
If you’re trying to decide whether to buy, sell, or hold, this conversation offers a framework: watch listing volumes into late 2026, track days on market, and pay attention to rent vacancy. The smartest move is to be ready to act when the window you prefer—more stock or less competition—opens. Enjoy the chat, share it with a friend who’s weighing their next step, and subscribe for more grounded property insights. Got a take on how a capital gains tax would land where you live? Message us and join the conversation.
Buy your first home in NZ Weekly Webinars
You thought it's not possible or the dream is too far away? Come to my webinar and I will show you, you are much closer to your dream, than you think you are!
Join Here - https://bit.ly/4m9SL72
Hello and welcome back to that Homeland Hub. Kunch has joined me today.
SPEAKER_00:Yeah, it's been a little wee while, hasn't it? Someone's been on holiday.
SPEAKER_01:No. It was the wild weather, the planes were cancelled. I couldn't get anywhere. It was a fantastic holiday, Kunch. You should come with me next time. Lots of cocktails by the pool.
SPEAKER_00:Yeah, maybe we'll make that happen, eh? Cocktail and work overseas. Sounds good.
SPEAKER_01:I've been told to take my podcast with me overseas and interview people by the pool. You'll get the best stories. Yeah. That'd be cool, actually. Next time. Next time.
SPEAKER_00:Well, while you're away, there's some talks about capital gains tax on property. Capital gains tax.
SPEAKER_01:I'm sure we they talked about it for ages before.
SPEAKER_00:Yeah, it has been, you know, in the media or like spoken about, but one of our what's it called? Parties, political parties, has said that they will introduce capital gains if they get voted in. Wow. So we're not going to talk about any political stuff. So I just thought we'll cover the capital gains side of things and what that would look like for first-home buyers and all like property markets or things.
SPEAKER_01:Yeah, and how is that going to affect them?
SPEAKER_00:Yeah, so they're wanting to chuck in capital gains tax for investment property, is from what I believe. So if you are looking at selling investment property as of or after 1st of July 2027, so it's not going to kick in for a wee while should they come into government. So from the 1st of July 2027, if you sell an investment property and you make some gains out of it, the the amount is taxed. Oh I thought we were ready taxed anyway. You're taxed on profit. You're taxed on the profit, yeah, from the sale. But the other one is bright line.
SPEAKER_01:So how is that different to the bright line tax?
SPEAKER_00:So the bright line tax is if you're selling um an investment property within two years of you owning it, you're getting tax in terms of bright line right now, sort of thing.
unknown:Yeah.
SPEAKER_00:So it's kind of the same, isn't it? If you think about that. Well, that's where you're getting taxed anyway.
SPEAKER_01:Yeah, so that's where I'm questioning. Or is it a tax if like every year your property goes up in value, even if you don't sell it? Or I think you have to sell it by 1st of July to get rid of it.
SPEAKER_00:By 1st of July and get rid of it. Because after 1st of July, if you sell, it's for capital gains.
SPEAKER_01:Do you think it's for sale, or do you think it's for the actual value? For instance, like this year your house is valued$500 and the next year$600.
SPEAKER_00:I think it's the profit difference from when you brought the house to when you sell, and if you made any gains. But then there's also deductibles that go with that. Yeah. Yeah. So you can deduct your what interest maintenance and things, yeah. Which then might not be ending gains as well. But I'm not a tax expert, so we're not gonna deep dive into that side as well. I just wanted to chat about it affecting what the market would look like, and also like for our first home buyers. So my theory is that the investors may start selling now before 2027. So then there may be an oversupply in the uh market of those properties, which is meaning good for our first home buyers. Yeah, so that's the track I'm trying to go. Yeah, meaning good for our first home buyers because there's more stock, more supply, which then may bring uh house prices down. After 2027, our investors may not sell and hold on to it, which then means less stock means house prices go up. Yeah.
SPEAKER_01:Okay, interesting. I wonder what it will do to rent as well.
SPEAKER_00:I think rent would right now, if investors are trying to like flick off, then rent would still probably stay the same. However, if investors are keeping more, rent's gonna go up.
SPEAKER_01:Because that's what I'm thinking. If that suddenly creates a shortage of rents, then the rent will go up. Correct.
SPEAKER_00:If investors are flicking off right now, yeah. Okay, it's gonna, yeah, less supply and rentals, more homeowners. Interesting. Yeah, it's an interesting topic, isn't it?
SPEAKER_01:But they've been talking about it for years. Like every time there is an election, yeah, that topic comes up.
SPEAKER_00:Yeah, but the only thing this time is that they're saying that they are going to do it. That it's like literally going to happen. Hmm.
SPEAKER_01:But then at the same time, I feel like I saw a post of one of the very famous investor investment advisors. He put a post saying Labour says that they will implement, you know, capital gains tax, and then they get into the government and they realize that 90% of politicians have properties and they go, Oh, hold on a second, we're not gonna do that because that's not gonna be a positive effect on them. But I guess from the government point of view, what they're trying to do is they're trying to achieve an equilibrium where we live in a equal world. And you know, if you're running a business, if you're making profits, you should be paying tax on it. Yeah, and again, funny enough, someone made this really interesting example, and I didn't agree with that example, but he was like, Oh, well, you know, if I've got a t-shirt business and I'm selling t-shirts and I'm at 500k profit, I pay tax on that 500k profit. So why is the property excluded? However, to me, it's a completely wrong example because we pay tax on the rent we receive. So us, him selling t-shirt is us receiving rent. It's not the same comparison, you know. So I don't know. I just feel it's unfair if we have to pay prof tax on a property that continues to increase in price because of economical factors, factors outside of our control. But I wonder if they're trying to put a lid on the property prices increasing, because we have been experiencing some crazy prices, property prices increase, right, in the last 10 years or so.
SPEAKER_00:Yeah, I mean like they're trying to fix something, and so they're trying to introduce, you know, all this capital gains to try and fix it. But I don't know, I'm I don't know, because it's only a handful of people who have so many properties, X amount of properties. Not everyone has that many. And you've got your mum and dad investors, they only have one extra. Yeah, and that is literally their retirement plan.
SPEAKER_01:Yeah, yeah. And that's and that's where the unfortunate thing is, isn't it? Like the ones that the rich people that have multiple, multiple properties, it's gonna be a drop in auction for them. They'll be like, oh, cool, whatever, pay it off. But the ones that are mum and dad investors, they're gonna get affected quite significantly.
SPEAKER_00:Which I I don't agree with that. I they obviously worked hard all their life and they're just trying to get one gains up, you know? So I think maybe a cap on like if you've got five properties or if you've got three investment or something like that, then you you've got to pay capital gains. Not like when you've got only just that one extra.
SPEAKER_01:Yeah, so it's gonna be an interesting place to watch because a lot of investors are now asking, oh, should I be buying? Should I just hold off? You know, yep. What should I do?
SPEAKER_00:Yep, lots of investors are that's crossing their minds. So watch this space, especially our first home buyers. If investors want to get out, next year's the year of election, so October 2026, you may see more houses December 2026 on the market.
SPEAKER_01:Yeah, time to buy. So that's why come by come and see us earlier so you can sort out your fancy. Awesome guys. Thank you so much for tuning in. I hope that this has been a good discussion for you to listen to. And if you've got if you've got your own thoughts on this subject, please let us know. We would love to hear from you and what you think is gonna happen. This is quite a controversial topic.
SPEAKER_00:So it is that's why I didn't want to deep dive too much.
SPEAKER_01:So we try to keep it very uh above yeah, above water, above waters, above the surface, because we don't want to be shut down either. Um, we love this podcast, so yeah, please feel free to reach out and let us know. Thank you. Thank you.
SPEAKER_00:Bye.
