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Originally Posted by xor
CGT has proven to do very little to prevent the increase of house prices in other countries...
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Perhaps that's because the family home is almost always exempt?
Buy a house for $500k. Sell it for $1000k pay tax of $150k means starting shopping with a mortgage of $150k to stand still. This will deflate prices. If family homes are exempt a CGT will do nothing in NZ since few people make gains from any other type of "investment".