The current rules allow tax deduction of interest for new builds, but not existing houses. It has pushed a lot of investors into buying new build rentals, which I think is a great middle ground that increases demand for new builds while reducing demand for other houses.

[–] Ilovethebomb 3 points 1 year ago (2 children)

That's actually a great idea, especially since the supply of new build properties can be increased to meet demand.

If National intend to keep the rules this way, it actually sounds like a good policy.

[–] Xcf456 6 points 1 year ago

They don't intend to keep it this way. Their stated policy is to reinstate full interest deductability for rental properties.

[–] BalpeenHammer 3 points 1 year ago

National isn't going to keep this policy. Their intent is to raise house prices.