Raid on commercial investors depreciation of assets detrimental

“Depreciation of commercial and industrial properties is critical for the future health of New Zealand’s built environment,” Leonie Freeman, Property Council chief executive says.

She says the proposed policies to remove depreciation are a raid on long-term maintenance funds for New Zealand’s buildings, running the risk of rundown or even derelict buildings across the country.

“If depreciation is removed, property owners tell us they will have to reprioritise expenditure, which when added to rising costs such as insurance, mortgage and property rate rises, will likely cause rent rises for businesses” Freeman says.

“Both parties have been inconsistent on depreciation of commercial buildings.”