have their properties<\/a> at a \u201chigher standard if they\u2019re living in it, than [compared to] a landlord\u201d.<\/p>\n\u201c[Owner occupiers] want to utility maximise, so they\u2019ll spend money on their own property, because it\u2019s an investment and a place of residence \u2026 a landlord is fitting [improvements] often to a budget, or a cash envelope which fits the rental market for that place.\u201d<\/p>\n
Simplicity chief economist Shamubeel Eaqub described the report as a \u201clobbying tactic\u201d that didn\u2019t add to the property investment debate.<\/p>\n
\u201cIt\u2019s a defensive mechanism for any of these groups \u2026 if you look at all the economic assessments, our GDP would be bigger than our [actual] GDP, right?<\/p>\n
\u201cIt\u2019s a lobbying tactic. I\u2019m not entirely sure it does much in terms of adding any light on what it is we want to talk about when it comes to how we do property investment well in New Zealand.\u201d<\/p>\n
![\"New]()
New Zealand is grappling with how much money should be going into property investment at the expense of other investment, Simplicity chief economist Shamubeel Eaqub says. <\/p>\n
No one was saying property investment was wrong, but the country was grappling with how much money should be going into property investment at the expense of other investment, Eaqub said.<\/p>\n
\u201cIf you look at where our money goes \u2026 in bank lending, credit in the economy, investment \u2013 we are much too heavy on housing, [and] not heavy enough when it comes to our businesses.\u201d<\/p>\n
Ball told the Herald the report wasn\u2019t a comparison between owner-occupiers and investors, but to \u201ccall a lie\u201d beliefs property investment wasn\u2019t productive.<\/p>\n
Property investors spent $4.1 billion on maintenance and improvements alone in the year covered by the report.<\/p>\n
\u201cYou can\u2019t say, \u2018What if all these houses were owned?\u2019, because that\u2019s never going to happen \u2026 there\u2019ll always be a market for rental property, so I don\u2019t think that\u2019s a fair comparison.\u201d<\/p>\n
He understood Eaqub\u2019s comment that when all industries\u2019 claims of economic impact were added \u201cit might amount to more than [New Zealand\u2019s total] GDP\u201d.<\/p>\n
![\"Rising]()
Rising house prices have caused headaches for Kiwis wanting to get on the property ladder in New Zealand, although prices have been flat in recent years. Photo \/ Michael Craig <\/p>\n
But it was also important to acknowledge the work of their industry, and others.<\/p>\n
\u201cWhen politicians have bad housing policy, we get artificial constraint \u2026 that\u2019s when prices spike \u2026 who gets blamed? Not the politician who maybe changed the laws, it\u2019s the property investor.<\/p>\n
\u201cThat was part of the reason we did this \u2013 to shine that light on property investment and what it actually does, but also to highlight we want good information [and], good housing policy that leads to a good supply and demand balance.\u201d<\/p>\n
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"This represented 5% of the country\u2019s 2.5 million fulltime equivalent jobs in 2024. New Zealand Property Investors Federation…\n","protected":false},"author":2,"featured_media":336742,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[128803,180388,3225,15408,8613,138,3595,13488,219,23373,55471,23500,296,321,232,111,139,69,90,1136,814,47528,14904,1560,15508,16085],"class_list":["post-336741","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-128803","tag-248b","tag-according","tag-almost","tag-billion","tag-business","tag-by","tag-economists","tag-economy","tag-equivalent","tag-fulltime","tag-impact","tag-into","tag-investors","tag-jobs","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-private","tag-property","tag-pumped","tag-questioned","tag-report","tag-residential","tag-supported"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=336741"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/336741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/336742"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=336741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=336741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=336741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}