Interest deductibility
The new government comprising of National, Act and NZ First brings with it changes to property investment. The key changes that everyone was expecting, interest deductibility will return. For many investors that are geared to 80% in Auckland, approx $100 to $300 per week less in possible taxes are on the cards, which would have come in over the next two years. With interest rates at the current level, this cashflow could have been the difference between holding on or selling down.
90 day notice
Landlords will be able to give a 90 day notice for a tenant to move on, without reason or application to the tenancy tribunal. This was the case many years ago and removing this ability caused quite a bit of anxiety for some property investors. Dealing with unruly tenants especially in multi units become fraught with issues. Going through the tenancy tribunal could mean that you needed to provide evidence of multiple occasions of issues from neighbors who may feel intimidated.
Shorter notice on sale is now also possible. Fourty two days can mean investment properties become more appealing for home owners. Still seems a little rough on tenants this one. Especially when we do hear about some tenants having to move often in a busy market.
