The residential landlords shared that they can’t claim tax deductions for depreciation anymore and added that they will be raising their rents, as per a post-Budget survey.

About 2459 people were surveyed and it was discovered that 47% of the rental property owners who were questioned proposed to raise their rents, whereas, about 69% were persuaded that denying depreciation would result in rise of rents.

About 45% of the landlords approved of the Budget overall and 32% were neutral about the matter. The New Zealand Business Council for Sustainable Development commissioned the survey. It shared that Manukau City, which has maximum number of landlords, will be raising rents. Only 30% landlords were planning a rent rise in Wellington, but 54% wanted to keep it static.

About one third of the rent owners opposed the end of depreciation and 50% insisted that it would cause them financial problems. About 18% of the landlords were in favor of the move. As far as the general population is concerned, 18% opposed the loss of depreciation and 46% of them supported the move.

Property consultant and blogger Brian Dalley shared that rents would rise, but rental owners will exit due to increased costs of property investment.

He said, “Simply keep away from negative gearing (interest-only loans) pay down debt and work within a budget like any successful business should. Sure, by doing so you will end up paying taxes but you only pay taxes in this country if you make money and isn't that the point?”.