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Landlords wait warily for Budget

NZ Herald

Lee Whiley is anxiously awaiting the Budget to learn what impact changes to property tax will have on him.

The Aucklander believes that the removal of tax breaks for landlords could cost him at least $10,000 ayear.

Mr Whiley sold a cafe and bicycle shop to focus full-time on property. He owns five rental properties.

Like many property investors, Mr Whiley won't be making more purchases until he knows how much more tax he'll be paying when it is announced next week.

While he isn't thinking about selling any homes just yet, he said the proposed changes, which look set to remove some tax breaks given to landlords, are deterring would-be buyers.

"It will make a significant difference to us," he said. "I'm expecting to pay significantly more tax."

Mr Whiley said removing tax breaks could lead to a shortage of rental properties on the market.

"My concern is it will force rents up and the poor old tenant will end up paying more.

"I'm an advocate of Mr Key and his Government. I try to take the bigger picture and I think they're trying to do things that will be right for the people of New Zealand long term.

"[But] personally, I think a lot of landlords will take a hit. I expect to take a hit and I'm not happy about that in the short term."

Source: NZ Herald