Tax And Rules Worry Property Owners

[Perry]

Tax And Rules Worry Property Owners
Fiona Rotherham
07/10/2013

Government regulations and tax changes are the two biggest risks seen
by residential property investors, according to the 2013 ANZ Property
Investment Survey. Ninety-two per cent of investors expect property
values to go up the next year compared to 87 per cent for this year.
The median increase is expected to be around 4.3 per cent rather than
the 3.1 per cent thought likely the year before.

Nearly all expected them to rise over the next five years. Rents were
not expected to keep pace with property values with 86 per cent of
investors forecasting similar growth to last year of 2.5 per cent.
Just under two-thirds of those surveyed planned to buy another
property and half of those within the next two years.

[speights boy]

" Nick; all running smoothly on the FHB housing front while I was at APEC? "
"Yes, Prime Minister"
"So, nothing I should concern myself about then?"
"No, Prime Minister"
"Bill, you wanted to talk something about tax?"
"Yes, Prime Minister"

Brown goes in to bat for young house-hunters

But new figures show first home buyers are being forced out of the market while property investors make a killing.

Real estate agents and mortgage brokers say interest from first-home buyers has dropped dramatically since the mortgage rules changed at the beginning of the month.
Auckland Property Investors Association president David Whitburn said agents were receiving 60 per cent fewer calls from first-home buyers than they were this time last month.
But just as many properties were still being sold, because investors were in the market to snap them up.

Whitburn said: "There are fewer people at auctions and definitely fewer buyers. As a result, it is easier for me as a professional property investor to get good deals."

Property investor Sara Hartigan said the LVR change was "the best thing that's ever happened".

She is a trader and investor primarily in South Auckland and has bought four new properties in the past two weeks.
"Previously, every muppet was going to the bank and getting a five or 10 per cent loan," she said.

And they were so scared they weren't going to be able to get a home that they were going to auction and bidding furiously, driving prices up $30,000, $40,000 or $50,000."

Ivor Jacobsen settled the deal on a new investment property in Manurewa on Friday.
He said the LVR limits would not slow his plans to buy an investment property every six months or so.

Whitburn: Labour's housing policies better

Labour is the clear winner with its housing policies at the moment, says Auckland Property Investors Association president David Whitburn.

[Perry]

Who was it that mentioned how adept the gummint was at triggering
the law of unintended consequences and then looking surprised if not
shocked at the consequences? What do they do for policy analysts,
these days?

Oh, that's right: they work at the RBNZ.

[speights boy]

More like Hubris and Arrogance from the Govt.

PM: Morning Mr Wheeler, what was it you wanted to discuss.?

GW: Concerned about rapidly rising house prices In AKL & ChCh and their effect on banking stability in case of a market downturn.
Very likely will be raising OCR 3 or 4 times between now and election.

PM: What! Damn. Don't need that during the campaign.
Are there any other choices?

GW: Well there are those Macro tools we had discussed last year, that should delay the need for a while, but you haven't given me the power to use them yet.

PM: Quick, here sign this MOU...that'll do it.

BE: But Prime Minister.

PM: Not now Bill.

Exit Wheels.

PM: What did you want Bill?

BE: Those tools we just authorised can really really hurt FHBs PM.

PM: Don't worry, I'll get an exemption for FHBs, I'm a master of negotiations.
Ol' wheels will listen to me, especially when I tell him how damaging it would be to me politically.

3 Months later

PM: Bugger.

GW: Luvly Jubbly: now I have both Macro and OCR to play with.

[speights boy]

Who was it that mentioned how adept the gummint was at triggering
the law of unintended consequences and then looking surprised if not
shocked at the consequences? .

There may well be a few surprises for property investors with mortgages come May's budget.

[Perry]

Jeees, be careful, SB. You and I might get to agree
on some things - even if sceptically - but that might
be too much for Spaceman to cope with.