What’s Proposed for the Property Industry?
Posted by apm on December 11, 2023 Company News, News, Property Management
Celia Burbery, Residential Property Management General Manager, outlines five key things that stood out to her that are proposed by the new government and will affect the property market for everyone.
As we move into a new year with a new government, no doubt we are all waiting with bated breath to see if election promises morph into real changes that will affect the property market for all of us. What did the new government propose? The five proposed changes that caught my eye are:
- Restore loan interest deductibility for property investors. The Government’s Coalition Agreement outlines investors would be able to claim 60% for the 2023 tax year, 80% in 2024/2025, and 100% in 2025/2026.
- Reduce the Brightline test to 2 years, from its current 5 or 10.
- Relax or simplify planning rules and make resource consents for houses cheaper and faster. NZ First wants to make it easier to build ‘granny flats’ and ensure more houses are built. There is an opportunity for investors in this.
- The National-Act Coalition Agreement proposed the introduction of pet bonds in order to make it easier for tenants to have pets in rental properties. This will lower the financial risk if your tenants want to have pets.
We currently offer a Pet Addendum Agreement for tenants with pets in order to help lower the risk of having pets in a rental property.
- Return to a 90-day no-cause termination.
The above changes will help incentivise landlords in continuing to provide rental accommodation. The industry needs a solid private rental sector with landlords actually providing a solution to some of the government’s housing problems, so to see proposed changes is most welcomed by the industry.
We will keep across any changes as they are introduced and will keep you updated as they come into effect.
Thank you for being a landlord and, for putting your trust in apm. May the Christmas/holiday season bring you a joyous end to the year, and may our service bring you much fulfillment in 2024.
General Manager – Property Management
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