Local investors are happy with moves to tax offshore buyers who sell houses within two years of purchasing them.

LISTEN:  KPMG's Ross Mckinley talks to Rachel Smalley about a foreign buyers tax.

The Government's released proposed details of a withholding tax for overseas investors who sell a house within two years of buying it.

It would be at whichever is lower - 10 per cent of the property's value, or 33 per cent of the cash made on it.

On the face of it, Andrew King from the Property Investors' Federation believes it looks like a good move.

"It's another one of those things, like having to have a bank account number and having to have an IRD number in New Zealand, that will be a good thing to make sure for anyone who is overseas and investing in the property does actually pay the tax they're meant to be paying."

Mr King said overseas investors are competitors to local investors and first home buyers.

"Anything that means they're paying their fair share of tax I guess will be a good thing for us as well."