Its likely Tax changes to property will reduce the suply of rental property.
Rents will rise not because landlords can increase rent to restore profitability just becaue they want to, but because tenants will have to compete for less homes. It will be messy, because with high land & building costs & unattractive tax changes, the private sector will not build any new rental property for this surplus of tenants.
In fact NZ is facing a housing supply crunch all round.
Sections need to be $50, 000 to $100 000 cheaper, ( ie, basic new 400 m2 section, cheap area, with sevices for $75 000 to $125 000) & true build cost to fall from a true all up cost that really has to be $2200 m2, to say $1500 m2 before this messy situation is averted.
My prediction? Either massive state building again, or steady backdown on tax law.
You will see Tax INCENTIVES on rental property within 5 years! Heard it first here
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