Dear Resident,
The sales numbers are somewhat down as would be expected in June with the onset of winter. The general trend however is still for rising prices. The major issue at present is the forthcoming general election in September. The major issues that would effect house prices are of course a Labour party led government talking of a capital gains tax, increased income tax for higher earners and a compulsory Kiwi Saver Scheme with higher contributions.
A National party lead government suggesting no capital gain tax, a reduction in the maximum income tax rate and a confirmation of the voluntary Kiwi Saver Scheme. A capital gain tax would increase the cost of owning a rental property and potentially mean increased rents to cover this tax. A compulsory Kiwi Saver Scheme with increased weekly/monthly payments would make it harder to save for a deposit on a house making more people rent for longer. Pushing up the demand for rentals and therefore rents.
I am not sure what effect higher income tax rates would have on house prices but a lower income tax rate would probably mean more money after tax to save for a house deposit.
I have just completed a study of capital gains for 3 bedroom homes in West Auckland suburbs, here are a few of them:
Capital Gains April 2009—2014
(3 bedroom homes)
Henderson 60.1%
Glendene 50.0%
Te Atatu South 66.2%
Te Atatu Peninsula 68.2%
I will research some more West Auckland suburbs for next month.
Best wishes,
Licensee Agent REAA 2008 Agent REAA 2008
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