May 20th 2010: 5:30pm
REINZ National President Peter McDonald has come out to say that overall the Real Estate Institute of New Zealand are in support of the announced changes, however cautiously noted they “are not expected to have a significant long term effect on house prices or rents.”
He went on to say;
‘REINZ supports the government’s moves to make the taxation system fairer and close the loopholes that enabled some people and businesses in all sectors to rort the system,’
Bearing out the fact that suspicions have been high for some time now, and reinforcing anecdotal evidence already out in the New Zealand Real Estate market place, he commented;
‘Because the Government clearly signaled its intentions we have already seen property investors particularly concerned about the loss of the tax breaks exiting the market yet median residential dwelling price have continued to rise.”
In explaining why this is so, Peter says;
“What people can afford to pay for their accommodation determines the market value of rental properties, not artificial tax deductions which could only be exploited by some investors because of their particular personal circumstances.”
Considering what the Global Economic Crisis over the last 2 years has done to investors confidence, and signaling what many in the industry already know, he said;
‘A more significant reason why people invest in residential rental property is the security compared with other investments, so while tax considerations are part of the equation, like it is with all investments, it is not normally a deal breaker,’
Nothing like it.....
Like always there’s nothing like bricks & mortar.
Or as is also the current case, there’s really no equivalent to real gold.
