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Election Campaign 2017-Prime Minister Bill English or Labour Party leader Jacinda Ardern, who is right for the job that is the question? But various government policies have fuelled the demand for housing over the last decade, what could change?

 

Wealth and Prosperity

Housing Politics Driving the Election Campaign 2017

 

Property Investor’s Future—Election Year 2017

 

Well, at this stage, various government policies have fuelled the demand for housing over the last decade in combination with demographic and lifestyle changes. In response policies to resolve the shortage of housing and for affordable house prices have been targeting property investors.

 

That is not new and how has it been in the past? Related costs have pushed up market rents and market values. It makes it harder for first home buyers and investors to enter the housing market and undoubtedly those policies are dividing the housing market and widening the housing wealth gap.

 

With up wind polling four weeks before the election for the new Labour Party leader Jacinda Ardern in opposition to the current government and  Prime Minister Bill English, leader of the National Party,  the housing issues are the centre of debates to seduce voters.

 

Actually since introducing The Residential Tenancies Amendment Act 2010 a number of new housing policies have been impacting the housing market. The flaming up reform talks about financial regulations, capital gain tax (CGT), taxation (ring fencing, negative gearing, land tax), rental housing warrant of fitness (WOF) and further changes to the tenancy law are actually ongoing considerations by the government . However, how far will it go with further pushing up the housing costs?

 

That is not all as other policy reforms, while not directly housing related, will have also effects on homeowners’ budget, because if the government wants to increase social spending, that money will be take from somebody.

 

Over the decades a new housing landscape has emerged. Long-term renting (the standard in Europe) becomes trendy in NZ, too. That is not bad for property investors at all as necessarily law changes to support that trend will put pressure on roving or bad tenants.

 

Unfortunately, these policy changes and coming discussions may only worsen the tensions between the “haves” and “have nots” in NZ as we have seen by recent credit policies, which tightened and pushed home loan rates for investors and homeowners alike.

 

Historically, a negative shift in home values has followed every boom. However, that can also be triggered by a “landslide” election. What ever happens next, the results depend on the winning party (national or labour) whether property values fall or sustain moderately.

 

Another hot topic has been high immigration numbers in recent years and the labour party’s approach is a significant reduction to protect the domestic labour market. Well, why would NZ as import country ignore population and the impact on economic growth for new jobs and higher wages? Okay, I can’t wait to see what happens next.

 

 

 

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Wealth and Prosperity Housing Politics Driving the Election Campaign 2017