Rents Warning

Investors Warn Rents Will Rise

If Tax Rules Changed

March 14, 2010

Property investors have warned that rents could go up by $34 a week if the Government scraps landlords’ depreciation on housing.

But the Government says they are wrong.

TVNZ reports that the Property Investors Association says landlords would lose on average $1750 a year if they lost the tax rebatel; and this amounts to $34 a week when passed on to tenants.

Labour MP Trevor Mallard estimates the increase could be even more — as much as $45 across 400,000 households.

But Prime Minister John Key has said the figures are wrong and the Government’s advice is that if there are rent rises, they will be small.

The Government is looking at lifting GST from 12.5 per cent to 15 per cent to cut taxes across the board.

It says it will make sure those on benefits are compensated, and that no one will be worse off because of the GST rise.

The Government has been reported as planning to use property tax changes to help fund the tax package and make housing investments less attractive.

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