And while many including most of the opposition parties found something to moan about nothing, the fact of the matter is the Government made the same choice that smart lay folk would make in difficult times – careful, prudent, get the debt under control.
The only budget changes that might have some direct impact on Real Estate is the Bach Tax.
Some suggest this may threaten property values in holiday markets. In case you missed the specifics – Assets that are partly used for private purposes and partly for income producing purposes will be subject to tighter restrictions on the deductibility of costs. The government says these measures are specifically targeted at taxpayers who are offsetting holding costs on assets such as holiday homes, planes, and boats.
Generally it’s been a pretty slow segment of the real estate market over the last three years. We just hope it doesn’t slow it further.
Latest research from ASB show a big jump in NZ house price expectations in face of low rates and supply.
A net 45 percent of respondents expect house prices to increase in the next twelve months, compared with 27 percent in the three months ended Jan. 31, according to the ASB’s Housing Confidence Survey.
A net 21 percent believe now is a good time to buy, up 1 percent, while 43 percent see interest rates rising in the coming year, up from 27 percent.