Articles by Salesh Chand.
In spite of the opinions of the previous government and some of the public, property investors, whether large-scale landlords or “mum and dad” investors, are actually important contributors to New Zealand’s economy.
Every investment property purchased sets off a chain reaction of economic activity: banks issue loans, insurance companies write policies, councils collect rates, tradies and builders find work, and tenants secure homes.
Without private investors taking the financial risks involved with owning investment property, the housing market would suffer. The government simply cannot build or manage enough housing for everyone. If investors step away, thousands of tenants will be left with few options – living in motels, overcrowded homes, or substandard housing.
A network of industries is reliant on property investment
Property investment is not just about bricks and mortar; it contributes to an ecosystem that keeps local economies alive. Every dollar invested in New Zealand property supports employment and services across:
• Banks and financial institutions through lending and mortgages
• Insurance companies that protect property assets
• Local councils funded through rates and building consents
• Tradies and construction companies providing repairs, renovations, and building houses
• Real estate agents and property managers driving market activity
• Infrastructure and community services that grow alongside housing
• Schools and local businesses benefiting from stable, vibrant communities
• Government (IRD) through collection of taxes from rental income or trading profits
• Professional services that advise investors and facilitate property transactions, such as lawyers and accountants
Restrictive policies and heavy-handed taxation risk choking off this economic network. Without investor participation, everyone, from builders to bankers to IRD, feels the impact.
Overseas shares versus NZ property investment
If people have cash, they look for ways to invest that money to give them a good return. The main options are to invest in shares (often in overseas companies) or to invest in property in New Zealand. The choice between investing in property at home and shares overseas is not just personal – it’s national.
A New Zealander investing $200,000 in U.S. or Australian shares sends that capital offshore, permanently enriching another country’s economy. The jobs, profits, and taxes generated stay overseas.
But if that same $200,000 is invested in a property in Rotorua or Invercargill, the benefits multiply at home: local agents earn commissions, tradespeople get work, councils collect rates, and tenants gain secure housing. The money circulates through our economy multiple times, supporting countless livelihoods.
Encouraging property investment keeps wealth and opportunity within our borders.
Shortsighted policies are hurting our future
Recent years have seen damaging policy changes, like the Labour Government’s removal of mortgage interest deductibility and restrictions on loss offsetting, that have discouraged everyday New Zealanders from investing in property.
These rules have:
• Made it harder for young investors to enter the market
• Pushed capital overseas, weakening domestic growth
• Reduced housing supply, worsening affordability
• Diminished incentives for long-term wealth creation in New Zealand
The irony is that while we offer tax breaks to foreign film companies to create jobs, we penalise local property investors who do exactly the same – generate employment, stimulate local industries, and contribute to infrastructure through rates and levies.
Trust the free market, empower New Zealanders
The government doesn’t need to subsidise property investors; it simply needs to stop penalising them. A free, balanced property market is the most efficient way to contribute to growing the economy and increase housing supply.
Encouraging domestic investment would:
• Retain capital within New Zealand
• Create stable, long-term employment
• Support infrastructure and community growth
• Help younger generations build wealth at home
Property investors are not the problem - they are the solution. They take the financial risks the government can’t afford to, and in doing so, they help to keep the wheels of the economy turning.
The bottom line
If New Zealand continues to punish property investors, it risks a long-term erosion of domestic wealth. Capital will flow offshore, housing shortages will worsen, people will leave New Zealand for better opportunities overseas, and local industries will struggle.
By contrast, supporting property investment strengthens our financial independence, keeps jobs in the country, and secures a better future for all New Zealanders.
Politicians must stop treating investors as the enemy and start recognising them as partners in national prosperity.
Because when property investors thrive, so does New Zealand.
If you’d like help with property investing, check out or website – we have lots of resources to help you succeed, including free videos on property, tax and related topics, and our Property School course. If you’d like to talk to us directly about property or tax, fill out our online form and we’ll get a meeting arranged for you.
The best things about attending Property School were learning how to do the numbers to get the most out of a property, when to ask for advice, and the different strategies you can look for when assessing a property. - Anon - June 2017
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