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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news