The offerings of buy-to-let (or rent-to-buy) in New
Zealand can appear very attractive if you factor in
comparatively substantial demand in most city areas,
healthy rental payoffs and a great deal of tax
benefits you can get upwards of a uniform eight
percent on your investment at this time. And when
you consider that your savings account is in all
probability only giving you one percent at the most
at the moment, this can appear very attractive.
Nevertheless, the Finance Minister has been very
harsh with those who are making money off the back
of New Zealand buy-to-lets and is threatening to
reform taxes, which may make it less tempting to be
an investor in New Zealand property in the future.
Factored into this is the fact that evidently over forty
thousand newly built homes over the past ten years all leak
due to poor standards in building and the improper use of
materials unsuited to New Zealand, and there are at least
more than forty thousand reasons not to buy any real estate
hastily in New Zealand at this time.
If you take the rental market at par value you have a chance
for an easy, profitable stake in New Zealand. But scratch
just a bit below the surface and you discover that really,
making a profit off buying-to-let in New Zealand is not at
all aboveboard and is not something you should try without
consideration and precaution.
Previously in 2008 of February, the New Zealand
Reserve Bank resolved to use a microscope on ‘the
tax system and housing demand in New Zealand’ and
they developed a discourse paper that came up with
that conclusion that those less fortunate in the
housing market of New Zealand are heavily mortgaged
(or geared) owner occupiers.
The report goes on to conclude that there are
presently a whole host of bonuses in place to
promote investment in buy-to-let real estate.
It appears that the government has listened to the
soundness of this advice and is presently pursuing
the analysis and consideration of all options
related with squeezing the sizeable tax breaks that
landlords presently enjoy.
According to Russel Norman, the Green Party’s co-leader,
“We’ve had a major problem with the housing asset bubble
which has been one of the key drivers of the Reserve Bank
pushing up interest rates.”
Norman has been especially encouraged by the minister of
currency finance’s statement, “We will seriously consider
changes in the taxation of property. We haven’t had those
put to us yet but I think the evidence that investment
patterns in New Zealand could be more productive I think is