24-05-2010

Half of landlords will put up rents

Landlords.co.nz

1. News
2. 2010
3. May

Around half of rental home landlords (48%) say they will put up rents as a result of being denied depreciation.

By Jenha White

The first nationwide survey on the Budget of 2,097 people, commissioned by the New Zealand Business Council for Sustainable Development, found that denying depreciation on rental properties and commercial buildings is supported by 46% and opposed by about a fifth of people.

A strong majority (65%) think it will result in landlords putting up rents and around half of landlords (48%) say they will put up rents.

The survey also indicates the Budget could influence investment decisions in the way the Government wants.

Asked if changes to tax and property depreciation will make them more or less likely to invest in the resident or commercial property or other investments (like KiwiSaver, businesses and cash deposits):

• 29% say they are less likely to invest in residential property (3% more likely)
• 23% are less likely to invest in commercial property (2% more likely) and
• 18% are more likely to make other non-property investments like KiwiSaver, businesses and cash (13% less likely).

Overall, nearly twice as many New Zealanders approve of the 2010 Budget overall than disapprove. 40% rated the Budget good to excellent (7% excellent). It was rated poor to very poor by 22% (7% very poor) while 26% were neutral and 11% say they don't know.

Source: Landlords.co.nz