National's property tax policies bring optimism for rental property owners

Date: 20 Sep 2023

A real estate company and property investors group are optimistic about the National Party's policies on offshore purchases and restoring interest deductibility for rental properties.

On Wednesday, National unveiled its tax plan, including a 15 percent tax on foreign buyers of houses worth more than $2 million and aiming to have interest deductibility for rental properties fully restored by 2026.

New Zealand Property Investors Federation (NZPIF) says rental property owners are facing financial difficulties and need this tax break, but Renters United says people relying on interest deductibility to survive should not be in the business in the first place.

NZPIF president Sue Harrison said rising interest rates and no relief from Inland Revenue or banks meant members were faced with tax bills they could not afford.



"If you can't afford to pay the taxes, you have to consider selling the house, which many people are doing and are waiting to see what happens in this election to make that decision and I know many people in this situation."

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