Wellington woman expresses heartbreak at constantly being priced out of first home — 'We are consistently $100,000 out'

A wanna-be Wellington first home buyer has spoken of the heartbreak of missing out on a number of properties and her fears of never owning her own home.

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With the Government ruling out a capital gains tax, some are suggesting a land tax should be introduced. Source: 1 NEWS

It comes as the Government announces special fast-track legislation to speed up developments on Auckland’s Dominion Rd, at the old Sleepyhead factory in Huntly, and in Richmond, near Nelson, creating 160 homes.

Jo Bowley and her partner want a place of their own to call home.

“We’ve got a running joke now. We’ve put in a few tenders and we are consistently $100,000 out, every time,” she said.

“It feels like a full-time job sometimes preparing for a tender. You put your heart into these letters that you’re writing these vendors.”

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Jo and Ross say they’ve done everything they can, and are in favour of a capital gains tax, something ruled out by Jacinda Ardern.

“We keep readjusting the dream — the little puppy running around is getting further and further away,” Jo said. 

Arthur Grimes of Motu Research said there was major land banking going on around cities, and restrictions imposed by council on starting development.

He says a land tax is the answer

“It can be a switch from income taxes to land taxes. It’ll incentivise development in and around the cities, and disincentivise landbanking.”

Ardern said advice had been asked about what to do about landbanking, while National’s Nicola Willis says taxes aren’t the answer.

“If you want to get rid of the temptation of speculation, you need to release more land for development.

“Let’s think about the people who are holding onto land right now. They are looking at a mountain of reasons not to build houses."

It's estimated between five and 20 per cent of land zoned for residential development in big cities is sitting vacant, or only partially developed, according to data from 2018.

While Jo and Ross want a house of their own, the Government insists it’s building as fast as it can.