Property investors majority in House
More than half the country’s MPs are property investors – and almost all at least own their own homes, the latest register of their financial interests shows.
The 2021 Register of Pecuniary Interests details the assets and interests of the country’s members of parliament. It shows 63 of the 120 MPs own more than just the home they live in. National MP for Botany Christopher Luxon declares six investment properties in Auckland and one in Wellington.
National MP Gerry Brownlee declares interests in three properties in Christchurch, one in Wellington and two in Marlborough. National deputy leader Shane Reti owns a commercial building and residential property in Wha¯ ngarei, a rental property in Kohimarama and a residential property in the Far North.
Labour MP Willie Jackson owns two family homes in Ma¯ ngere Bridge, jointly, one in Rotorua and an apartment in Wellington. Labour MP Ayesha Verrall owns a property in the Maldives, as well as one in Wellington.
Prime Minister Jacinda Ardern only declares an interest in her family home in Auckland while National leader Judith Collins has properties in Auckland, Wellington and Nelson.
Other assets listed include farms, Ma¯ ori land blocks, conservation blocks and some MPs’ parents’ homes.
Despite having a smaller number of MPs in this Parliament, National has a higher number of property investors in its ranks at 33 compared to Labour’s 28. Only five Labour MPs, three Green MPs and one ACT MP declare no interest in any real estate.
Last year’s register showed 78 MPs had property investments. Some of those previously highlighted as owning multiple properties have since left parliament, including Nathan Guy and Amy Adams.
Nick Goodall, head of research at Corelogic, said property investment was a popular option for New Zealanders looking to save for retirement, and MPs would have similar goals.
‘‘So it’s ultimately not a surprise. The concern comes when you consider the recent rhetoric to protect the value of most people’s largest asset, essentially providing a Government guarantee that they won’t ‘let’ a significant drop occur,’’ Goodall said.
‘‘I think one of the challenges to the Government is to not only disincentivise property investment, as they’re intent on, but to somehow encourage investment in other options to assist the goal of preparing for retirement. Tax breaks for KiwiSaver is an example that springs to mind.’’
Infometrics economist Brad Olsen said the large number of rental property-owning MPs was probably a reflection of their career stage and income, and the fact the investments gave a good return.
‘‘Higher house prices over recent years, coupled with lower interest rates, have made housing investment lucrative with a strong payoff expected through higher capital gains over time. Many New Zealanders have taken the same path, with property investment seen as providing a strong return on investment,’’ Olsen said.
Nationwide, the total number of active landlords with bonds lodged, as of February 9, was 120,330.