PROPERTY, TAX AND FINANCE IN 2021
After a crazy 2020, many investors and would-be investors are wondering what 2021 will hold in store for them. I outline my views and share my predictions in this article, which I hope you will find useful.
Firstly, who am I to tell you what 2021 might bring? As a brief background, I am a chartered accountant in public practice, based in Auckland. I spend most of my time working on my property portfolio and supporting our clients as the property partner at GRA (chartered accountants), where I am managing director. I would say I am no economist, but I am a businessman well engaged in property all over New Zealand. And I have spent 25 years as a chartered accountant, specialising in property investment.
I expect that 2021 will see more growth in property values, with another cracker of a year throughout the country. It takes a while for New Zealanders to wake up to a property boom, but once they get the bit between their teeth, sentiment overwhelms any rational investment analysis, and prices continue to rise. 2020 kicked off the growth, and it’s just getting going in my opinion. The dampener on the growth, however, might well be LVRs reducing credit availability (more on this below). ANZ have just moved to 60% LVRs for investors voluntarily, following the Reserve Bank’s announcement that they will move to 70% LVRs next year. A reduction of credit always constricts market activity.
Talking of growth, while the media highlight social inequity and wealth disparity, and
