Every silver lining has a cloud

"We've met with National ministers and their basic thinking is that the depreciation and the LAQC changes were really all that needs to happen," said NZ Property Investors Federation president Andrew King.

"They want to stimulate the rental property market, they don't want to have people withdrawing their investment because they don't want to have a drop off in supply. I think they're saying that's all that needs to be done really."

King said he thought ministers had realised the effects of the depreciation changes had been "larger than they thought" and that the change was set to have an even larger impact next year.

"A lot of people actually won't really realise what it's going to cost them until they put their tax return in next year."