PHOTO: DAVID WHITE/STUFF – Andrew King of the NZ Property Investors Federation said: “Ring-fencing rental property losses will simply make it considerably harder for people to provide rental homes for tenants.”
Landlords believe the cost of providing a rental property will rise from $5500 a year to $9000, if Revenue Minister Stuart Nash’s tax reforms go ahead.
Nash has proposed “loss ring-fencing” rules that would mean people with residential properties would no longer be able to offset tax losses from those properties against their other income.
The aim was to level the playing field between home-owners and property investors, Nash said, reducing the tax advantages of investing, or speculating, in residential property.
But landlord representative Andrew King said: “A NZ Property Investors’ Federation study into the cost of providing the average NZ home as a rental shows it currently costs $5500 a year after all costs are paid, even with recent rental price increases and a cash deposit of over $50,000.
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