10-07-2023

Election 2023 Policy Priorities

1. News
2. 2023
3. July

As investors we play a valuable role in the New Zealand housing system.  Around 86% of rental homes are supplied by private owners and this is one of the best examples of a public – private housing system in the world.   Privately owned rental homes have been the first and fastest to comply with Healthy Homes legislation, most of which our Property Investor Associations supported as good for our tenants.  Owners are eager to keep good tenants who look after their home and aspire to fix any issues quickly for them.  Our network of owner investors care about knowing the rules and complying, and more importantly care about providing good accommodation for tenants.

One of New Zealand Property Investors Federation (NZPIF) key functions is to advocate with politicians and government departments for fair rules that not just benefit our tenants, but also encourage aspiring investors to offer well managed homes for them.

For this reason we offer some policy priorities for members to discuss with their MP’s and political candidates. These are policies which will be critical to encouraging investors to either hold on to their properties, buy more investment rental homes, or encourage new investors to provide rental homes.

Highest and first 100 days priority: reinstate Interest deductibility commencing as soon as practically possible -prior to 1st April 2024.

As soon as practically possible the following needs to happen:

• 90 day termination notice reinstated
• Restore Fixed Term tenancies to having end dates
• Reset the Brightline test back to 2 years.

To help keep more properties available in the rental market we also propose:

• Remove ‘3 Strikes for anti-social behaviour’ as it is unworkable.
• Set up a tenancy category for a longer fixed term tenancy to allow more certainty of tenure.
• Remove ring fencing as a tax tool so the next generation of investors are able to generate a positive or neutral cashflow, so they can reinvest and maintain their property.
• Include rental property owners in discussions regarding the housing market as they are part of the solution.
• Incentivise rental homes owners to join us – our members are better landlords and highly compliant with legislation.  There are 17 Property Investor Associations around the country..

The impacts of less rentals are increased rents, more competition for rentals, and marginal and first time tenants finding it harder to get tenancies as owners have more choice.  Bringing back fixed term tenancies will allow tenants more options such as short term housing for holiday towns and students to find homes during the year.   The Government deserves to be blamed for shortages and rents rising as they have deliberately discouraged private investment in housing.  The evidence shows much of the Government owned housing is worse as is their service to tenants.  Private owners can be a great solution to a growing problem and should be rewarded not penalised!

Ends
13/6/23

Tags: federationreports