THE INVESTMENT ARM
Recent tax changes to interest deductibility rules and a reduction in Bright-line Test obligations have redefined investment strategies , reflected by a rising market share for residential investors .
“ We ’ re seeing tangible evidence that property investors have become more active throughout the last two months of 2024 thanks to a blend of more attractive rental yields , the promise of 100 per cent interest deductibility from rental expenses in 2025 , and proposed tenancy law changes that will offer landlords more significant control over their investments .
“ These changes are telling because investors are critical market participants , injecting both capital into the property sector and fostering a competitive environment that offers the nearly one in three Kiwi households that rent more housing choice .”
ECONOMIC RESILIENCE & GLOBAL TRENDS
Throughout a turbulent two years , New Zealand ’ s financial system has benefitted from a degree of resiliency , aided by a strong labour market and prudent lending practices that have helped households navigate higher mortgage lending rates without widespread distress .
“ Lenders have become more competitive recently , with reports of greater incentives for house hunters , while easing presale requirements for established developers with proven track records signals a commitment to maintaining market momentum ,” Coulson says .
“ Globally , factors including the outcome of the U . S . Presidential election could shift the dial on inflation with implications for New Zealand ’ s economy . International developments often have a meaningful influence here , affecting trade , investment and property market sentiment .”
THE BOTTOM LINE : WHY WAIT ?
Coulson reflects on the broader property market , noting that economic indicators align favourably after a period of turbulence . “ We ’ re seeing greater stability , which means the rewards are becoming clearer for both buyers and sellers ,” he says .
“ Adaptability , foresight and strategic action will define success in this dynamic environment , with sellers positioning themselves to benefit from growth and buyers still able to secure favourable outcomes ahead of anticipated growth .”
The latest data from the Real Estate Institute of New Zealand ( REINZ ) underscores a positive trajectory : sales activity surged 20 per cent year-on-year in October , and
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