Comments on: Budget hasn’t put off property investors

By: Me

Me — Wed, 02 Jun 2010 12:33:27 +0000

I don’t suppose Bernard Hickey or Kieran Trass will be losing any sleep over your views “Cam”. Rightly or wrongly their views are at least well researched and show some intelligence.

By: John

John — Mon, 31 May 2010 04:58:42 +0000

Say Steven – you say “The Govt… should have introduced a capital gains tax”. To do what? Just in case you missed it, in the last year in Aust, house prices went up 20% and much more in Melb and Sydney. And guess what – they already have a capital gains tax. Hasn’t slowed property price increases at all.

Lastest driver of house price increases in Aust is annoyance at the sharemarket etc. Same move to real estate as seen in the 1987 sharemarker collapse. Suspect the same thing will now happen in NZ.

By: Steven Anderson

Steven Anderson — Sat, 29 May 2010 00:58:13 +0000

If the difference between viability of the investment option is the depreciation element then you definitely did not have a viable investment.

The Government has missed the boat in relation to property investment. They should have introduced a capital gains tax as opposed to the stupidity that it currently is. The selling point is easy, if you are an investor (i.e. hold) the tax hardly applies to you, if at all. If you are a speculator then you will be caught in the net and pay your fair share.

By: Christopher

Christopher — Fri, 28 May 2010 09:31:47 +0000

Landlords should be pleased with being let off the hook so lightly. There are still plenty of reasons for competent (not geared to the hilt/look after their tenants/maintain their properties)people to invest in property. If property prices decline over the next year (which i doubt)there will be a swag of reasons, not just the new depreciation regime and if they do decline then surely that is also an opportunity for new “investors” to purchase at a price that is sustainable without the depreciation subsidy.
I am also a landlord but i would prefer that our good young people stay and work in NZ.If my loss is NZ’s gain, so be it.
re comment no.2 – such a raw statement about “banks”. Be interesting to hear the details of the application(s) for a loan(s) that got knocked back. Try putting the loan to 3 banks. If they all knock it back you will know it didn’t stack up anyway. Maybe the banks have “noticed” that it is the highly geared investors who are most at risk ?

By: cam price

cam price — Fri, 28 May 2010 07:28:11 +0000

I agree, Keiran Trass and Bernard Hickey are baboons and couldn’t find bananas if they were back at the zoo. I believe we are in for good growth, low interest rates, pressure pent up from the Budget policies to come clear, and property prices have crashed already. We’re about to follow Aussie boom. Here we come.

By: a

Fri, 28 May 2010 05:57:24 +0000

Budget is mildly inflationary, so properties will rise contrary to Trass’ prophecy. Maybe its time he has realised that walking is good for his health, or maybe he’s emulating the Aussie economist.

Disallowing depreciation, LAQC changes, rise of ACC and GST will affect rents by upto 6-21%. Watch this space, as this will just be the beginning of the “New Normal” in the residential rental market. Rent rises are also causative of the strengthening of the recovery in property markets. Investors are currently constrained by credit constraints imposed by banks, so first home buyers who miss this English send opportunity will tell stories of missed opportunities to their kids and grandkids.

By: JD

JD — Fri, 28 May 2010 05:20:16 +0000

A year or so back Kieran predicted house prices would fall by 30%. They rose 6%. Why should we take his latest prediction seriously? Is it just more grandstanding on his part to be noticed?

You say “there is no doubt that rents will rise”. Why? What in your opinion drives rental levels? I would be interested in the views of others.