May 24th, 2010
Investments on holiday rentals “overinflated” – report
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In New Zealand, An official from a landlords association believes that investment figures on holiday rentals are a “overinflated,” saying that instead of the $200 billion that was initially reported, it may about fifty percent of that.
Andrew King, vice-president of the Property Investors Federation, said that the contention of Tax Working Group’s that there was too much money invested in property is a definitely “overinflated.”
This seemed to concur with the research presented by Auckland University’s Retirement Policy and Research Center which states that the actual amount invested on holiday rentals and properties are in the range of $60 to $80 billion.
The mistake seemed to have stemmed from the census figures in 2006 where there was an error in the number of houses owned by residents.
The confirmation of this error is yet to be made by the party who released the report.
