Light at the end of the Tunnel for Commercial Landlords

Inflation and tax changes are coming to the rescue of landlords.

Commercial landlords have been having a lean time, with property devaluations and falling rents taking their toll on the books.

But things are looking up as factors combine to make healthy rent rises possible.

While rents for new leases are market driven, most rent reviews now factor in inflation in the form of the consumer price index (CPI).

Property researcher Alan McMahon says with the New Zealand Institute of Economic Research forecasting the CPI forecast to peak at 5.2 per cent next year, landlords will be smiling.

Read more here > http://www.stuff.co.nz/business/industries/3977400/Light-at-end-of-the-tunnel-for-landlords