So they will tax us on interest paid but if we sell because our rental is no longer viable they tax us as well.
If they wanted to release more houses onto the market to help more people into new homes they should have removed the bright line.

And we can't increase rents to cover the extra tax for 12 months. Screwed all ways.

bit - 2021-03-27 07:37:00

bit wrote:

So they will tax us on interest paid but if we sell because our rental is no longer viable they tax us as well.
If they wanted to release more houses onto the market to help more people into new homes they should have removed the bright line.

And we can't increase rents to cover the extra tax for 12 months. Screwed all ways.

they is you eh, just to avoid doubt, you being the user of all the free services in nz. So its like paying your way, you think?

gabbysnana - 2021-03-27 09:17:00

bit wrote:

So they will tax us on interest paid but if we sell because our rental is no longer viable they tax us as well.
If they wanted to release more houses onto the market to help more people into new homes they should have removed the bright line.

And we can't increase rents to cover the extra tax for 12 months. Screwed all ways.

After the 12 months is up landlords can hike the rent as much as they like. If tenants can't pay they can look elsewhere. The Finance Minister says so.

Landlords just need to find and keep evidence that the new rent is not substantially above market rent in case tenants take their own evidence to the Tenancy Tribunal for a rent reduction.. If they can find evidence, that is. It is a high bar.

There's a post this morning about a big Auckland landlord planning to increase rents by $135 a week next time an increase is permitted.

If there is a different government in 2023 and many changes are reversed who in their right mind thinks that the increases will also be reversed.

artemis - 2021-03-27 09:36:00

This message was deleted.

domy2010 - 2021-03-27 10:00:00

Add a 28%+ tax to rents. Ouch.
No more rent subsidies. Which from a free market point of view is a good thing. Now renting will not be subsidised by the taxpayer.
User pays. Encourage investing in new properties - also a good thing.
Better sell the dogs quick and snap up those new builds.

pcle - 2021-03-27 10:05:00

pcle wrote:

Add a 28%+ tax to rents. Ouch.

Can you provide a worked example that rents need to rise by 28% to cover the removal of tax deduct-ability please?

sparkychap - 2021-03-27 10:14:00

bit wrote:

So they will tax us on interest paid but if we sell because our rental is no longer viable they tax us as well.
If they wanted to release more houses onto the market to help more people into new homes they should have removed the bright line.

And we can't increase rents to cover the extra tax for 12 months. Screwed all ways.

Has anyone mentioned that they are getting two bites of the cherry on this? The banks will be paying tax on the profits on the interest too. I suppose land lords could terminate the tennancy and get a new tennant that pays more.

curlcrown - 2021-03-27 10:58:00

sparkychap wrote:

Can you provide a worked example that rents need to rise by 28% to cover the removal of tax deduct-ability please?

That is not how I read the post.

artemis - 2021-03-27 11:02:00

curlcrown wrote:

Has anyone mentioned that they are getting two bites of the cherry on this? The banks will be paying tax on the profits on the interest too. I suppose land lords could terminate the tennancy and get a new tennant that pays more.

Sounds like the government intends to attach 12 month rent increases to the property not the tenant. Just means bigger increases later.

artemis - 2021-03-27 11:03:00

domy2010 wrote:

Property investors will still be able to claim interest on new builds. Kinda makes sense, we need more houses built, if investors are really interested, then consider new buys and keep all the current tax benefits.

The only winners there will be developers who will be able to charge top of the market as there will be two competing groups. FHB who can spend more with the First Home Grant because it is a new build and landlords who get the tax break on interest deductibility because it is a new build.
As new build numbers are pretty much at capacity in many areas, due to shortages in labour, land and materials delays, watch the price of new builds sky rocket.

Edited by hers.nz at 11:09 am, Sat 27 Mar

hers.nz - 2021-03-27 11:07:00

artemis wrote:

Sounds like the government intends to attach 12 month rent increases to the property not the tenant. Just means bigger increases later.

So if a tenant moves out 9 months after the last rent rise will it be permitted to raise the rent 3 months into the new tenancy or will the rent have to be kept at the previous level for a further 12 months???

rowlf - 2021-03-27 11:17:00

rowlf wrote:

So if a tenant moves out 9 months after the last rent rise will it be permitted to raise the rent 3 months into the new tenancy or will the rent have to be kept at the previous level for a further 12 months???

Probably the former, but who knows as there has not been an announcement about the announcement yet.

artemis - 2021-03-27 11:34:00