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Rents set to rise

05:30 AEST Thu May 27 2010
Rents set to rise
Read more: Budget 2010
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By MSN NZ Money staff

Rents are set to rise as a result of the government's 2010 budget, a survey claims.

The New Zealand Business Council for Sustainable Development commissioned the post-Budget survey of residential landlords.

Just under half, or 47 per cent, said they will be raising their rents because they can no longer claim tax deductions for depreciation.

Manukau came out as the area with the highest proportion of landlords planning to raise rents at 74 per cent.

In Wellington 54 per cent of land lords said they plan on keeping rents static while 30 per cent said they were planning a rent hike.

Forty-four per cent of landlords said they were less likely to invest in residential property because of the budget, compared to 29 per cent of the overall population.

The survey was based on responses from 2459 people.

RELATED: Budget socks it to property investors

User comments
I agree with you completley MEME, they have jsut seemed to change the way in which they collect tax that has the appearance of benefiting us. Do they really think they can pull the wool over our eyes this easily? We can not deny the fact that this country (and many others) are in a finacial deficit at the moment and so the space to reduce the goverments take to benefit its citizens is simply not there. I am a landlord and i will not be adjusting and rents form this outcome. claiming depreciation should of been out long ago, although it is nice to receive a tax rebate for it it is not a true expense. It took them (the govt) awhile to wise up to this fact.
hmmmmm, I wonder why so many kiwis moved to Australia. The living standards in NZ are getting so high, but income remains very low for majority of the population. It is very hard to make a living in NZ.
I am quite annoyed that Manukau has come up as the city most likely to go along with the rent rise. As far as I'm concerned, I couldn't care less for the excuses anymore. The house I rent is in an ok area, yet I've been robbed twice. Everything. Gone. Not once, but twice. I can't move from here because I can't afford to. What did the rental company do about my doors, nothing. I had to repair broken windows and doors at my OWN COST! after being robbed, and because of this my insurance wouldn't cover anything due to being robbed once before and we had to fix all things prior.The huge tree gaping over my fence...AGAIN, trimmed at my own cost because the people I rent from said " nothing can be done at this present time" after promising me they would trim the huge tree for the past 2 years. Me and my husband work hard, 9-5 with 2 small children trying to make ends meet. But again, I feel like this is just proving that John Key couldn't care less about me or the ordinary KIWI..
I am a kiwi in the UK and the income taxes here are set to rise, aswell as the interest rates and rents rise all the time at least in NZ there is the income tax cut! Although it may not make a huge difference at least it counteracts some of the GST and rent rise. Here there is nothing to counteract it, hence why I am seriously considering moving back to NZ. The way of life is still alot better in NZ and we (Kiwi's) should count ourselves lucky that our country has not become as spoilt as the UK (....yet?). Inflation should raise rents a tenant I would expect to pay more rent each year......albeit not alot more but $5-$10 a week certainly.
For many landlords it is a catch 22 situation. Tenants have benefitted from the previous tax regime. Landlords have bugetted on that have been able to keep rent prices where they have been. Many landlords in NZ are the people who have only 1 or 2 properties, trying to build up a little extra for their retirement, they are not money hungry, but neither can they afford to subsidise tenants. They just don't have that luxury. Not mant tenants appreciate their landlords either and expect them to be giving all manner of handouts. In the harsh world of business most business owners pass on increased costs to their clients so we shouldn't be surprised if landlords do the same. That's life.
lets see the rent will go up the food etc will go up with the rise in GST OH yeh the rise in GST will also mean everything else will also go up so the tax changes are not going to make one bit of a change in our life.Come down to earth you people in the Beehive the person on the street you know the woking class people are not going to be any better off.All we will have to do is pull the belt in again and cut even more things out.We have been good tennants having rented our home for the last 7 years so I am hoping the Landlord will not be too hard on us with the rent rise, We can but wait and see........
Not everyone will be getting a raise in the next year. The fact that someone has the spare money to invest in property is enough reason that they should consider themselves very fortunate because there are young families living in bottom areas and just barely making the rent, with little children to bring up. A rent increase for people like that could be crippling. Thats certainly a lot worse than the landlords misfortune of 'oh now i'll have to put the rent up or not get a new tv or boat or bach this year'. To people like that who are putting the rent up... shame on you. What goes around, comes around. And please dont make the mistake of thinking that all renters are uneducated, financially illiterate scum, because not all of us can control our circumstances and are working hard, educating ourselves and doing the best we can for our families under the circumstances we have been given.
Oh dear, why are landlords so hesitant to increase rents? I wonder if you asked how many business owners are hoping to increase their income during the following year the number would be far higher (at about 100% at a guess). Also, how many tennants would be hoping to get a pay increase next year (about 100% at a guess). So why the fuss when less than half of landlords who will be operating in a less favourable environment are going to up the rents? The number should be more like 100%.