New LVR limits and a possible capital gains tax

Economist Kelvin Davidson analyses two potential property rule changes. The Reserve Bank proposes easing LVR "speed limits" from December, allowing banks to increase their share of low-deposit lending. This change is likely and expected to benefit property investors the most.

Separately, Labour has proposed a 28% capital gains tax (CGT) for investors from 2027. While its future is uncertain and dependent on the election, it signals a potential move towards lower returns on property investment.