Exempting the family house is likely to create an even greater imbalance. JOHN BISSET/STUFF Simon Kemp writes that exempting the family home from capital gains tax is likely to direct even more of New Zealanders' investment capital into already expensive family homes. But your liking (or not) for financial risk does not relate to people's preference for housing investment. Most of this property investment seems to be in people's regular houses, the family home, rather than rental property or holiday homes. The effect of exempting the family home from CGT is most likely to strengthen this trend, and direct even more of our investment capital into our already expensive family homes.

Source: Stuff March 27, 2019 15:00 UTC