The Increase To Building Costs Is Going To Affect Us All
Last week I put the following question to a Master Builder that we work with that specialises in building residential investment properties in Hamilton.
What impact to you think the increase to GST will have on the building industry?
This is what John had to say:
We have been eagerly awaiting the budget for many months now and its arrival comes with a bit of a Christmas Day like disappointment. Yes, it's pretty much what we were expecting and yes, it could have been worse, but it was still a cheap shot at those New Zealander's who are trying to be proactive about their retirement.
Besides the negative impact on property investors, I believe the budget will be good for the overall economy over the coming years. New Zealand has a high level of debt and it's still increasing. The government (the tax payer) are borrowing $220 million per week at present to fund our commitments thanks in large part to the outgoing governments over spending, so this clearly needs to be brought under control.
So what's the budget's impact on the average investor?
While we don't purport to be the property finance experts, our numbers point towards the average investor who owns one residential investment property having to come up with another $15-$25 per week to fund their investment........
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