The tenant covers all the taxes and costs through his rent.
In NZ, ROI on property is targeted to be around 8% [3]. The owner will take that ROI either in capital increase or in rent. [2]
If the property is appreciating, the rents will be allowed to slow down. If the property stops appreciating, then the rents increase to maintain the ROI. The entire market is targeted at 8%, particularly the property management companies.
Changing the property tax rules changes this equation, with a shift to higher rents.
New Zealand is trying everything to remove demand from the housing market. They first brought in new deposit rules (20% min for owner occupier[4], higher for investment properties 35%+[5]), now they've brought in foreign ownership legislation. It might affect the rate of capital increase, but that will only shift the ROI equation towards rental increases.
The government is looking at building more housing (FINALLY), but they are finding that all the regulations (houses with heating and insulation cost more!) means they can't do it for less that 600-650k [1].
[1] https://www.interest.co.nz/property/95345/housing-minister-s...
[2] https://www.interest.co.nz/saving/rental-yield-indicator
[3] https://www.yourinvestmentpropertymag.com.au/expert-advice/l...
[4] https://sorted.org.nz/guides/home-buying/buying-a-first-home...
[5] https://www.rbnz.govt.nz/education/at-a-glance-series/lvr-re...
The ROI is the +appreciation + rent - expenses.
If the property depreciates you have least return on investment. There is nothing you can do about it. You can't increase rent to compensate, people can't pay more rent. Your reasoning is absurd, if you could increase rent you should be doing that right now already.
Looking it up, I see USA is somewhere around 30% of income [1] as housing cost, while NZ is about 17% [2]. Seems to indicate there is room to grow under tight supply conditions.
[1] https://www.businessinsider.com/how-to-save-more-money-2017-...
[2] https://www.stats.govt.nz/information-releases/household-inc...
What I'm trying to say is walking into a house here in winter still doesn't feel like a place in say, Northern Europe. I don't think it's that onerous.
Sources: Partners brother in law is a builder, parents just had heat pumps installed, our landlord just installed underfloor insulation and it's currently 12 degrees C in the house.
Not yet, but soon. They did tighten up the rules around businesses that _never_ make a profit a while ago (I seem to remember).
CONSULT YOUR ACCOUNTANT.
You just can’t make a career out of construction with the current boom and bust way the cycle is going.
The challenge is health. It's a very demanding line of work where you have to carry weight, wake up in the early morning and work in the cold. People don't want to work like that. It's very hard on the body and you're broken when you reach your 50's.
When you are in your 20's. You fall from a ladder, break some bones, you heal and get back on your feet one year later. When you are in your 50's, you are more fragile and less resilient, same thing happens, you might never be able to work again. It's brutal.
There are huge markups in the local market on building materials due to a duopoly. It is cheaper to fly to Australia buy NZ made siding there and ship it to NZ than to buy it locally.
If an external rentier enters the market and realizes yield, other rentiers will follow. This increases demand for housing assets, not necessarily housing utility. this is the problem they are trying to solve.