Investors eye regions as law changes

investors where rents do not cover the cost of ownership.

Inland Revenue said about 40 per cent of investors at any one time were running at a loss and the average amount of tax benefit claimed was $2000.

Corelogic data has already highlighted the influence of investors in some of those areas with record prices – in Whangarei, landlords are now more than 41 per cent of the market. Their proportion of sales has jumped in Dunedin, too, to 26 per cent from 20 per cent early in the year.

Bindi Norwell, chief executive at the Real Estate Institute, said: ‘‘The laws that are being introduced around rentals will likely have investors more focused on yield than capital gain. This means that areas like Southland and Taranaki become much more appealing than the likes of Auckland as the rent/price ratio is more favourable.’’

Mundy agreed ringfencing could provide more fuel to those regional areas.

Buyers had spread out from Auckland to Wellington and Waikato and then Tauranga before moving further afield. ‘‘If you can invest anywhere in the country it would make sense to be looking to the smaller regions where the yield is quite a bit higher than the return you would get on an Auckland, Wellington or Hamilton house. ‘‘ An ugly tree will save you pennies as the festive season kicks into high gear.

Want one perfectly shaped and standing over two metres? You can expect to pay hundreds.

The price of your festive pine will also depend on where in New Zealand you buy.

But one thing is for sure – demand for natural Christmas trees is strong across the country.

Michael Fuyala, one of the owners at the iconic Misa Christmas Tree Farm in central Auckland, said smell and tradition were the key drivers bringing in customers.

‘‘We have people who came