Landlords In or Out in 2018?

hands over houseThe question being asked in the discussion forums of right now is – “In 2018 will Landlords flee the market in droves due to rules and regulations changes like the Healthy Homes Guarantee Bill and Labour’s desire to end tax breaks for Landlords and Property Investors or will the y be resolute and hang in there?”

Every year in the PropertyTalk forums a discussion thread on predictions for the year is created and for 2018 the focus right now is firmly on Landlord sentiment to property investing. Auckland based Pedersens Property Management say they’re continuing to focus on ‘win, win’ outcomes for their landlord clients and tenants. It’s all about being informed of events that will impact on their investments and tenancies so the appropriate action can be taken without a ‘fight or flight’ response.

In 2018 there will be some bumps in the road ahead for landlords and property investors under the Labour Government – especially the mum and dad investors. Ending tax breaks for landlords and property investors on rental properties so they’re ring-fenced and thus no longer available on other income will probably end negative cash flow investments.

Mum and Dad investors are said to be fleeing property says property financier in an news item on NZHerald – however in this discussion titled: “Flee!” full time investors discuss the NZH article and they say they’re more likely to be the purchasers of these properties when they enter the market. Therefore rental properties could just change hands from one investor to another i.e. from a ma and pa investor with one or two rental properties to a professional or full-time investor with 10 properties or more.

What may askew any data feed to us this year on landlords fleeing is the natural attrition rate of older investors selling up in preparation for retirement. It may be that this year is just the year more baby boomers nearing or reaching retirement age sell up. How will we really know if this group that’s largely responsible for ‘landlords out in 2018’? We probably won’t know for sure, so it will be guess work at best and no doubt there will be views shared that choose to ignore this group of investors especially if by doing drives eyeballs to their website.

Watch this space. We will share our views right here throughout 2018, including linking to property investor discussions in the forums.

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