What about the Tenants?

Personally I think tax changes to Residential real estate investment could be a disaster about to unfold...for tenants
I dont say that because I sell Real Estate..

this is why.

There is a general agreement rents will have to go up if landlording is made less profitable. Its as as simple as that.

For every tenant there needs to be a landlord. NZ owner occupier property ownership has been only slightly declining.
( claims the owner occupier percentage was falling were rebuffed when it was pointed out properties going to family trusts were going in statistics as a change to investment vs "owner occupier")

No, many people who have never owned a house , but could buy a house rent because....they are going overseas soon.

As Ive said before, playing with property is an easy one for the government. But its the lack of profitability in the economy thats the problem.


If the government make being a landlord less atractive...who will tenants rent from?
If yields have to be higher, values have to be lower. How does a loss of capital of say 20 % help redirect investment? It dosnt make other options suddenly more profitable...just reduces wealth. I cant see sellers of investment property putting it in the bank, or buying NZ shares. It will go overseas.

And the question I can not even begin to answer:
Who will the 30% of New Zealanders who rent ( & remember, only 3 % of NZ tenants live in state owned rental houses) have as landlords, if the government make it less attractive to own rental property?