Here are some important updates that you need to take note of:
1. Restoration of Mortgage Interest Deductibility:
The coalition parties have agreed to restore mortgage interest deductibility for rental properties. Starting from the 2023/24 financial year, you'll be able to deduct 60% of your mortgage interest, which will increase to 80% in 2024/25 and reach 100% by 2025/26. This significant move will benefit landlords and make property investment in New Zealand a more viable and rewarding option.
2. Restoration of 90-day Termination Notices:
Landlords will once again have the option to issue a 90-day notice to end a periodic tenancy, making it more likely for investors to take a chance on a tenant.
3. Discussion on Pet Bonds:
There is a promising discussion around the introduction of Pet Bonds. These bonds could serve as a safeguard for landlords while also providing more tenants the opportunity to keep pets in their rented homes. This could prove to be a win-win situation for both parties involved.
4. Market Access for Foreign Buyers:
It is important to note that the market remains restricted for foreign buyers, maintaining a more favourable environment for domestic investors.
Under the current foreign buyer ban, there are exemptions for buyers from Australia and Singapore, as well as those who are buying off-the-plan under certain circumstances
5. Easing Granny Flat Construction:
The coalition agreement between the National and NZ First parties proposes amendments to the Building Act and the Resource Management Act to facilitate the construction of granny flats and other small structures up to 60sqm. These changes will require only an engineer’s report for such constructions, streamlining the process considerably. This development is particularly beneficial for those seeking to add extra space for growing families or to accommodate guests.
All these updates should help to restore balance in the rental market and make property investment in New Zealand more attractive again.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not, and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
