Changes to New Zealand's property tax system will create more certainty and confidence in the market, says a Tauranga property expert.
Harcourts Advantage Reality Tauranga owner, Max Martin, says the new rules announced in the 2010 Budget will mean people have to be more careful where they invest.




The main changes outlined in the Budget include wiping depreciation deductions for rental properties and office buildings.
Inland Revenue will also receive funding to investigate property speculators who avoid paying tax on their trading gains.
Max says the new rules will push property speculators out of the industry.
"But the long term investor will still be there," says Max.
He says the changes will not have an adverse effect on the property market and will not influence the price of rent.
"Rent's going to increase anyway. That's because there's a shortage of houses in the area and good quality houses between $300,000 and $400,000."