Ban on interest deductibility hits market

In our wrap of property investment news, Sally Lindsay reports on calls to remove interest deductibility - and research showing property managers set rent higher than private landlords.

The loss of tax deductibility on interest costs is having a negative impact on the rental market.

Co-owner of Century 21 New Zealand, Tim Kearins, says future governments “of any stripe must bring it back as soon as possible”.

His comments follow a survey, commissioned by the Ministry of Housing and Urban Development, which found a quarter of landlords put up rents in the six months before May last year.

One of the big reasons for this was increased costs lumped on by the Government.