Disincentivising Mum and Dad investors?

Was the netball win compensation for the cricket loss? Not really, but congratulations to the Silver Ferns – wonderful!

It’s going to be interesting to see how this rental market particularly at the lower end plays out. The change in the way investors can off-set losses, the Bright-Line Test and healthy homes legislation and a shift in the LVR are all undoubtedly affecting the appetite for investment. At the same time, as mentioned previously, renters are taking advantage of this moment in this market to become homeowners, in many cases buying those homes that were rented. So the question is – who is going to supply the rental housing in the future? I’m not sure disincentivising mum and dad investors and others is a smart thing, if the tax payer ultimately has to become the supplier of rental housing.