Budget 2010: Like being in a car wreck, investor says

Michele Coker has 10 properties but says the rentals are not big money-makers. Photo / Christine Cornege

Michele Coker, a Hamilton property investor, feels beaten by the Budget.

"It's like that game Bash a Mole. That's what it feels like. Am I going to have to sell my rentals? Am I going to have to move to Aussie to get better yields?" asked the disillusioned 44-year-old.

After building up a Hamilton and Cambridge housing portfolio of more than 10 properties, home to at least 20 people including two doctors from Sri Lanka, she feels discriminated against.

"I bought my first place when I was 18 in 1984 when I was at uni, just saving my arse off, working after school making chocolate at a candy factory.

"But now where's the long-term plan? It's frustrating to have this knee-jerk reaction.

"This is like being in a car wreck. You're driving past, you don't want to look because you'll feel sick to your stomach but you can't stop yourself," she said.

The Waikato Property Investors Association committee member says some see landlords as "squillionaires" who avoid paying tax.

But they should consider the economic contribution, providing accommodation for migrants and people unable to afford a house, she says.

"I don't pay tax because I don't make any money. I just break even," she said, adding her places were encumbered with $1 million-plus debt.

"I have to subsidise rates, insurance and maintenance. It's certainly not a big money-maker, even after 20 years."

She emphasises she employs an army of tradespeople and that will be hit by the Budget.

She does not own her houses via loss-making companies but uses trusts.