Real estate agents also react to National's policies
Real estate agents have reported a surge in interest from property investors after the recent election results positioned National to lead the next government.
Tim Clark, Tommy's Real Estate sales director, said buyers and investors have “definitely started ringing” due to the change in government.
Mark Harris, Sotheby's managing director in Queenstown, noted a significant increase in website traffic from people in the USA and Australia over the past week.
“We’re not making too many promises at the moment [to those interested buyers]. Obviously, [NZ First leader] Winston [Peters] is still involved behind the scenes,” Harris said of coalition negotiations, 1News reported.
Harris said New Zealand is often considered a safe haven, which tends to boost interest in property purchases here during turbulent times worldwide.
Craig Lowe, of Lowe and Co Realty, welcomed the renewed interest in the property market but expressed concerns about dramatic increases in house prices in a short timeframe, saying it was “bad for society.”
Prior to the election, National vowed to allow foreign buyers to buy any New Zealand home priced above $2 million dollars, if elected. Foreign buyers, except those from Singapore and Australia, would face a 15% tax, with the resulting revenue earmarked to fund National's promised tax cuts.
Economists and the Labour Party were among those who slammed National’s numbers, raising questions about its calculations.
Meanwhile, experts pointed out that the policies to open part of the market to overseas buyers and reintroduce landlord tax breaks would push up house prices and demand for homes.
National vowed to completely reverse Labour’s changes to interest deductibility tax regulations for landlords by 2026. These regulations were revised by Labour in 2021, eliminating landlords’ ability to deduct interest expenses from rental income.
Steve Goodey, property coach and investor, said Labour’s interest deductibility changes “basically made every rental property in New Zealand worth a little bit less.”
“Now with [the interest deductibility restriction] taken out again over a period of time… every rental property in New Zealand is going to go up in value a little bit more,” Goodey said.
He said he was “on the fence” on whether the National’s plan to reintroduce no-cause evictions was a good idea.
Among those who were not feeling the post-election glow was Geordie Rogers, Renters United president, 1News reported.
“If I were a landlord, I’d be rubbing my hands. It's plenty of money going into my back pocket,” Rogers said. “I can guarantee that renters won’t see a cent of that, and Treasury agrees with that analysis too.”
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