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New LVR limits and a possible capital gains tax

Property rules in review

Kelvin Davidson
Last updated: 5 November 2025 | 3 min read
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AI summary

Two potential property rule changes are under review. The Reserve Bank has proposed easing LVR "speed limits", allowing banks to increase low-deposit lending to 25% for owner-occupiers and 10% for investors. According to economist Kelvin Davidson, this will likely benefit investors the most.

A more uncertain Labour proposal is a 28% capital gains tax (CGT) for investors from 2027. While its implementation depends on the election, it may signal a move towards lower investment returns and higher home ownership rates.

The LVR 'speed limit' change

The capital gains tax proposal

The final takeaway

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality