Is the property passion dead or just mellowing?

Like any love affair, New Zealanders' penchant for investment property may be maturing following last month's Budget.

Since May 20 it has been the multi-million dollar question: will the initiatives targeting property investment cool New Zealanders' overwhelming desire to be landlords?

The indicators conflict on whether the impending end to claiming tax deductions on depreciation of buildings, among other changes, will force investors to sell up.

A survey by landlords.co.nz says no. Investors might not be happy about the new rules but few have been put off their stride. Of the 636 who responded just 1.7 per cent said they were definitely leaving the property investment market as a result of the Budget.

Accountants, not real estate agents, have been the biggest winners so far, landlords.co.nz editor Philip Macalister says.

The changes to the rules around LAQCs (loss attributing qualifying companies), the structure half of survey respondents use to hold their investment properties, are having a greater impact, the survey shows.

To read the full NZ Herald article, click here

Posted: 21 Jun 2010

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