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Property investors staying put in this buyers' market

A survey of property investors by Quotable Value has confirmed results of an earlier survey run by Landlords.co.nz. Both surveys show that few landlords intend to sell their investment properties because of changes introduced by the government in this year’s Budget.

Tuesday, July 13th 2010, 12:00AM 1 Comment

by The Landlord

However there is a strong view that landlords will increase rents on their properties.

The QV survey shows that over the next six months 53% of landlords intend to increase their rents. Most said the rental increases would be between 1 and 5%, however 19% intended to raise rents by between 6 and 10%.

The main reason for the increases was to cover additional cost imposed on property.

Like the Landlords.co.nz survey QV says that the biggest impact of the Budget changes was one relating to depreciation. From next year investors will be unable to make some of their depreciation claims.

"The changes to the depreciation rules affected the most," QV research director Jonno Ingerson says, "closely followed by the increase in GST and a lowering of the personal income tax rate."

"Only 10% saw the biggest impact from changes to treatment of LAQCs and depreciation, perhaps as the change to depreciation is seen as more significant."

 When it comes to buying and selling properties it appears those exiting will do so quickly, while those looking to acquire more property will take their time.

Ingerson says the number of investors intending to buy or sell property is quite low, those that intend to sell are either going to do so quickly or not for at least six months.

"For those intending to buy, few intend to do so within three months, but seem to be waiting longer, perhaps for prices to fall further."

He says the budget does not appear to have led to a large number of property investors intending to sell up or exit the market. Over half intend to retain their current portfolio, with only 8% intending to sell some or all of their investment properties.

"In contrast 20% intend to buy investment properties. While 18% remain undecided the overall results appear to show that the budget changes have not forced many investors out of the market."

 

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Comments from our readers

On 13 July 2010 at 11:44 am anitas said:
Bureaucrats have got it right again, yeah right!!! Depreciation, tightening of LAQCs were all supposedly aimed at hitting residential properties when in fact it has hit Commercial properties most!!! These are the business's that employ most non government new zealanders everyday. They are the tax base, not the govt departments etc look after small business, in turn looks after N.Z. How and why do these bureaucrats get it so wrong!!!look after their arses/jobs????more likely
Commenting is closed

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special ▲8.64 ▲6.74 ▲6.49 ▲6.39
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
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Westpac Special - 5.79 5.49 5.59
Median 7.54 5.99 5.89 5.69

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