Your investments in the hands of politicians

This year’s election is a critical one for property investors as whoever forms the next government will change the rules around investing.

If National is elected it is likely to remove some of the less landlord-friendly parts from the review of the Residential Tenancies Act which is due to go to a select committee next year.  It is understood that the party’s housing spokesman has already given undertakings to key groups in the property investment sector.

Also it is likely to address issues to do with utility charges, such as water. The NZPIF has lobbied for water charges, to be billed in the same way as other utilities. In the past landlords, particularly in Auckland have had difficulties with water rates.

While both the big parties, Labour and National, have said they are against capital gains tax on property investment, it could be forced onto the agenda in post-election coalition building process.
Both the Green Party and the Maori Party have advocated some sort of capital gains tax.

A Labour-led government may be forced to look at these issues if it forms a government and that it could conceivably include it in its proposed December mini-budget to pay for its election promises.