Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rent affordability threatened

Rent affordability threatened

The latest Massey University Home Affordability Study shows that home affordability in only three of the twelve regions covered has deteriorated. It isn't surprising that two of these areas are Auckland and Canterbury. The third region is the traditionally high cost area of Queenstown lakes.

Of the other nine regions, seven had affordability improvements with two remaining stable.

While the Massey University study clearly shows that there is no affordability crises in New Zealand, rental affordability is set to become a major problem for tenants if tax changes proposed by some political parties are put in place.

"It is currently $135pw cheaper to rent than own the average New Zealand home" says NZ Property Investors’ Federation Executive Officer, Andrew King. "People need to realise that the extra taxes being proposed are going to have a dramatic effect on a tenant’s ability to save a home deposit and will lead to overcrowding for many families.”

People think that a Capital Gains Tax (CGT) is aimed at property speculators. Many are surprised to learn that it would cover businesses, farms, investments and shares as well.

"The capital gains made by property speculators are already taxed under current law and Inland Revenue has a well-funded and successful property unit to make sure they do pay their fair share of tax" said King.

The property related group that will be most affected by the CGT is rental property owners.

“When a CGT is combined with Labour’s other policy to ring fence rental property losses, it will lead to significant increases in the cost of providing homes for tenants,” said King.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news