Property Investment NZ Advisors and Troubleshooters Newland Burling and Co sum up the advantage to landlords of the budget,
GOOD NEWS FOR LANDLORDS-RENTAL SUPPLEMENTS INCREASED
( Budget 2017: The increase in rental supplements will be good news as landlords and investors feel the pinch between sluggish rental income and increasing outgoings such as rates, insurance and repairs.
The average investor is lucky to get a net 2% return on their residential investment so this move in the Budget will go some way towards redressing the imbalance. The supplement payments will be boosted from $145 to $165 for one person rentals, a two-person household from $160 to $235 and a three-plus-person from $225 to $305 per week. It is still nowhere near enough, but a good step in the right direction.)
Budget advisor extraordinaire, Stephen Joyce, said the government would keep a ‘close eye’ on how the market responded. Woo hoo, Stephen, over there.