Coming from a number of interesting discussion we had recently people are wondering whether they should stay in New Zealand’s property market or not and because of the uncertainty that the Referendum on the Voting System causes.

Now, I admit that are two different pair of shoes and fall together because of the time line. Regarding the referendum and I’m happy to see MMP system on the test. I have watched the political parties got into the Parliament and the impact on NZ. It has been the worst experience in my life with ridiculous legislations and minority strong holds. The FIRST PAST THE POST – system, I prefer, hope will turn the country into a performing one because the candidates who get the votes win to form a government without the need for coalitions. I would like to see accountability not coalition debates.

By now I can’t think of one good thing that happened to me as business, landlord or investor that has come from the current MMP system. And that is the point where the question comes from - Is New Zealand still a good place to invest in properties?

The worries that property related costs will climb because of the global financial market and internally of the disaster recovery related costs. But there are a lot of political concerns for instance why are landlords businesses treated differently when depreciating business assets etc? And then of course the ghosts of CGT, Ring Fencing, tenant biased law and rising compliance costs imposed by the local government are killers.

And further NZ economy depends on Asian market dominantly China and people ask what happens to NZ if the Chinese powerhouse runs out of steam? Certainly the potential to increase the family income would stop rents to catch up with rising costs. Yes that is a risk, too.

So I completely understand why so many people are nervous and stay away from properties. It wasn’t that long ago, where property values dropped so deep that home loans become higher in numbers than the rated valuation and income could not support payment to bank or credit institutions. Indeed no longer just only good news. 

But, let me tell you – I am interested in history – and I agree with people saying “history repeats itself”. That tells me, don’t give up your dreams, there are good surprises ahead. The good news really is, New Zealand is a country that deserves our support and it is up to you what you do with the freedom to own a property.

If you are like me, harvesting sun energy, wind power, rain water for my garden – believe it or not that is still “TAX” free. You will be just fine and enjoy the convenience owning a property and make the best out of it. The average household in NZ could do much better with brain. For instance I get rewards from my tenants, from my energy harvesting equipment and independence is good for enjoying life – That I wish you, too.

Klauster