ROSEMARY ABBOTT | Politics
BILL BUSTER
As the cost of living crisis continues to bite across New Zealand, Prime Minister Christopher Luxon has offered a “practical, common-sense” solution for Kiwis struggling to pay their bills, which is to simply sell off one of their rental properties.
Speaking to our reporters after being asked about rising grocery prices and power bills, Luxon said many households may be overlooking “obvious levers” available to them.
“Look, what I will say is that times are tough, I get that,” said Luxon. “But sometimes you’ve just got to take a step back, review your property portfolio, and think about whether you really need all of those rentals.”
Luxon explained that trimming down a property portfolio can be a great way to free up cash during difficult economic periods.
“If you’ve got, say, three or four rentals and the mortgage payments are starting to feel a bit tight, maybe sell one,” he said. “That gives you a nice lump sum, takes the pressure off, and suddenly those weekly bills don’t look quite so scary.”
When it was pointed out that many New Zealanders do not, in fact, own multiple investment properties, Luxon suggested people might not be thinking creatively enough.
“Well that’s the mindset we need to shift,” he said. “The shareholders of New Zealand are very resourceful people. If you’re feeling squeezed by the cost of living, just ask yourself: ‘Is there a rental property I could sell here?’ You’d be surprised how often the answer is yes.”
Luxon, who previously owned as many as seven houses before entering politics, said he understands first-hand the challenges of managing a large property portfolio.
“I’ve been there,” he said. “There were times when I’d look at the spreadsheet and think, ‘Gee, these mortgages are adding up.’ And sometimes the right move is to let one go.”
More to come.
