Presidents Report

09 Mar 2004

During the past couple of years the Federation has made significant progress on many fronts.

The business plan we evolved gave us a very clear sense of direction and specific projects for individual executive members to work on.

Projects such as the website, membership drives, New Zealand Property Magazine and the partnership programme with our sponsors have all contributed to a huge improvement in communication between the Federation, Associations and grass root members.  Hopefully this will in turn lead to an increased understanding by members of what the Federation’s reason for being is and also of what we have achieved over the past couple of years.

We have of course benefited from the property boom.  Without exception Associations have experienced increased membership and activity and total membership is now close to the 4,000 mark.

As at the time of writing there are several significant undertakings that the Federation is working on on behalf of you – the grass root members.

The largest is the Review of the Residential Tenancies Act.  This process, initiated as a result of discussions between the Federation and the Minister of Housing the Hon. Steve Maharey, is now underway.

I have been invited on to a small sub-committee made up of stakeholder organizations having an interest in the housing sector.

Called the “external reference group” this committee has recently met for the first time to review and discuss the Government’s initial discussion document on the Review.

I have already written to all Associations seeking input from them into the process and I urge all members to take the time to consider the issues and provide feedback.

This is a once in twenty year opportunity to have input into the legislation that regulates our property investment business.  We called upon the Government to undertake a review and our credibility as an industry group is at stake if we do not contribute meaningfully to the process.

Other important issues that have arisen during the past few months are tax related – review of the depreciation rates for residential investment properties and the floating of the “notional sale” concept for residential investment properties owned by individuals and bequeathed to beneficiaries by Will.  Both have significant potential tax implications for property investors and the Federation will be making submissions on your behalf on both.

Coming up in September is the Federation’s Annual Conference.  This year Otago is hosting us in Dunedin and I look forward to seeing as many of you there as possible.  Otago is renowned for staging a very social event and I’m sure that this year will be no exception.

Craig Paddon

President