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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news