Key Takeaways:
- The top 5 MPs with the highest-value property portfolios are Suze Redmayne (National), Christopher Luxon (National), Barbara Kuriger (National), Carl Bates (National), and Parmjeet Parmar (ACT).
- The average per-MP property interest is $3.16m, with National MPs having interests in property worth more than double the Labour average.
- The majority of MPs’ property interests are in family homes, with many owning apartments in Wellington.
- MPs make decisions that impact property values, including their own, and recent law changes have potentially benefited MPs with residential investment properties.
- The estimated total value of MPs’ property interests is significant, with some MPs potentially making mortgage interest payments on the order of $50,000 a year.
Introduction to MP Property Portfolios
The property portfolios of Members of Parliament (MPs) are a subject of interest, as they make decisions that can heavily impact property values, which are often enmeshed with their own personal and family fortunes. Under Parliamentary rules, MPs are required to declare the existence of all business, property, and other legal interests for "transparency and confidence." This declaration is important, as it allows the public to understand potential conflicts of interest and ensure that MPs are making decisions that benefit the country as a whole, rather than just their own personal interests.
The Top 5 MPs with the Highest-Value Property Portfolios
The top 5 MPs with the highest-value property portfolios are Suze Redmayne (National) with $24.3 million, Christopher Luxon (National) with $15.2 million, Barbara Kuriger (National) with $14.6 million, Carl Bates (National) with $13.6 million, and Parmjeet Parmar (ACT) with $11.1 million. These MPs have a significant amount of wealth tied up in property, with Redmayne’s farm alone being worth $18 million. It is worth noting that the values of these properties can fluctuate over time and may not reflect the current market value.
Other Parties’ MPs with Significant Property Interests
While the top 5 MPs with the highest-value property portfolios are all from the National Party, other parties also have MPs with significant property interests. Winston Peters (NZ First) has a property portfolio worth $7.3 million, including a $4.4 million house in Auckland. Willie Jackson (Labour) has a property portfolio worth $5.6 million, including three family homes and an apartment in Wellington. Celia Wade-Brown (Green Party) has a property portfolio worth $2.9 million, including a rental property in Wellington and a family home and native forest in the Wairarapa. Debbie Ngarewa-Packer (Te Pāti Māori) has a property portfolio worth $1.2 million, including her family home, a house under development, and an empty section.
Party Averages and Property Types
The average per-MP property interest is $3.16 million, with National MPs having interests in property worth more than double the Labour average. The majority of MPs’ property interests are in family homes, with many owning apartments in Wellington. Some MPs also own rental properties, with the combined rental portfolios of MPs worth between $53 million and $69 million. The types of properties owned by MPs vary, with some owning farms, commercial properties, and vacant land.
Why MP Property Interests Matter
MPs make decisions that impact property values, including their own. Recent law changes, such as the restoration of deductibility for mortgage interest on residential investment properties, have potentially benefited MPs with residential investment properties. This law change has allowed MPs to deduct their mortgage interest payments from their income, which can result in significant tax savings. For example, assuming a 30-year mortgage with a 30% deposit and an average interest rate of 6% over the term of the mortgage, an MP could be making mortgage interest payments on the order of $50,000 a year. In the 39% tax bracket, deducting this from their income would put nearly $20,000 back in their pocket.
Conclusion and Implications
In conclusion, the property portfolios of MPs are a significant aspect of their overall wealth and can potentially influence their decision-making. The fact that many MPs have significant property interests raises questions about potential conflicts of interest and the impact of their decisions on the property market. Furthermore, the restoration of deductibility for mortgage interest on residential investment properties has potentially benefited MPs with residential investment properties, highlighting the need for transparency and accountability in MP financial interests. Ultimately, the public has a right to know about the property interests of their elected representatives, and MPs must ensure that their personal interests do not conflict with their duties to the public. By understanding the property interests of MPs, the public can better hold them accountable for their actions and ensure that they are working in the best interests of the country.