This year’s election is a critical one for property investors as whoever forms the next government will change the rules around investing.
If National is elected it is likely to remove some of the less landlord-friendly parts from the review of the Residential Tenancies Act which is due to go to a select committee next year. It is understood that the party’s housing spokesman has already given undertakings to key groups in the property investment sector.
Also it is likely to address issues to do with utility charges, such as water. The NZPIF has lobbied for water charges, to be billed in the same way as other utilities. In the past landlords, particularly in Auckland have had difficulties with water rates.
While both the big parties, Labour and National, have said they are against capital gains tax on property investment, it could be forced onto the agenda in post-election coalition building process.
Both the Green Party and the Maori Party have advocated some sort of capital gains tax.
A Labour-led government may be forced to look at these issues if it forms a government and that it could conceivably include it in its proposed December mini-budget to pay for its election promises.
Interesting that both the Greens and Maori party advocate some sort of capital gains tax.
Surely this type of tax would make it less appealing to buy rentals which would leave a shortage of housing for renters. This would at some point force rents up wouldn't it and in turn the costs for a certain number of Kiwis.
On 28 October 2008 at 9:44 am User said:
Like I said in the August blog...
"Should the rules around property change?"
Refer US 1986 Tax Reform Act, Where tax laws were changed to stop speculation and tax evasion by highly paid self employed people and employees...
If you've structured your investments properly you should have no problem, but if you own it personally, might be time to start thinking about getting some good professional advice if they do change the laws and transfer to another entity...
just my two cents...
On 29 October 2008 at 9:36 pm Lorraine Murch said:
Lorraine says
It will reduce the stock of rentals as investers will look elsewhere. Some may be snaped up as permanant housing but for those who cannot afford to buy and will be the most in need the rental price will be high.
The goverment can'not possible afford to house all of these people and this would be polical suicide.
My perdictions
3 Comments
This year’s election is a critical one for property investors as whoever forms the next government will change the rules around investing.
Surely this type of tax would make it less appealing to buy rentals which would leave a shortage of housing for renters. This would at some point force rents up wouldn't it and in turn the costs for a certain number of Kiwis.