PHOTO: 1NEWS
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Real estate agents report a surge in interest from property investors following the recent election, which positioned the National Party to potentially lead the next government.
According to Tim Clark, the Sales Director at Tommy’s Real Estate, there has been a noticeable uptick in inquiries from both buyers and investors in response to the changing political landscape.
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Mark Harris, the Managing Director of Sotheby’s in Queenstown, has observed a significant rise in website traffic from individuals based in the USA and Australia over the past week. He mentioned that they are exercising caution in making promises to prospective buyers, given ongoing coalition negotiations involving figures like Winston Peters.
Harris explained that New Zealand is often perceived as a safe haven, leading to increased interest in property purchases during uncertain global times.
Craig Lowe, from Lowe and Co Realty, welcomed the renewed enthusiasm in the property market but voiced concerns about the potential negative consequences of rapid and dramatic increases in house prices on society.
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During the election campaign, the National Party proposed allowing foreign buyers to acquire New Zealand homes valued at over $2 million. Such buyers, excluding those from Singapore and Australia, would face a 15% tax, with the resulting revenue earmarked for funding the party’s promised tax cuts. However, these proposals faced criticism from economists and the Labour Party, who questioned their financial viability.
Experts contended that policies opening up the market to overseas buyers and reinstating landlord tax breaks could drive up house prices and demand for housing.
National also pledged to fully reverse Labour’s alterations to interest deductibility tax rules for landlords by 2026. In 2021, Labour had restricted landlords from offsetting interest expenses against rental income.
Property coach and investor Steve Goodey pointed out that Labour’s changes had devalued rental properties in New Zealand, but their removal over time is likely to push property values upward.
Regarding National’s proposal to reinstate no-cause evictions, opinions were divided, with Goodey stating his neutrality on its merits.
On the other hand, Renters United president Geordie Rogers expressed concerns that these policies would benefit landlords at the expense of renters and that the promised benefits might not trickle down to those in need, a view shared by Treasury.
SOURCE: 1NEWS