Property investors are thrilled the Government has eased restrictions on selling KiwiBuild homes.
Rather than having to give up any capital gains if the property is sold within five years of purchase, owners now only have to wait three years - and if they sell early, they'll still get 70 percent of any gains.
According to Housing Minister Phil Twyford the change is designed to make it fairer, since the properties aren't subsidised by the Government and buyers "are paying for them with their own hard-earned cash".
New Zealand Property Investors president Andrew King says it's a positive move.
"Five years is a long time not to be able to do something," he told Newshub.
"Many things can change in people's lives in that five-year period. To lose all capital gain over that time could be seen as draconian."
Mr King agrees with Mr Twyford that it wouldn't be fair since KiwiBuild homes aren't subsidised.
New Zealand Property Investors' Federation president Andrew King says there is less risk at stake:
"You might think, 'That's too big a risk, I'm not going to go for that.' But now, people [will be] more willing to buy a KiwiBuild home."
Mr King doesn't think the change will open up the scheme to abuse.
"It still means that you're going to have to give up considerable amount of any capital gain you accrue, if you sell it within a three-year period. I think there is a disincentive to want to do that."
Mr Twyford is taking a "wait-and-see" approach to the 30 percent penalty, to see if it works as enough of a disincentive to flip KiwiBuild homes.
House prices in markets like Auckland have stabilised, but there is still strong growth in the regions, such as Coromandel, Marlborough, Hawke's Bay and Waikato.
Newshub.
