“A flood of stories about the likely impacts of new interest deductibility rules has necessitated a new website to hear them all,” says ACT Housing spokesperson Brooke van Velden.
“Labour’s interest deductibility changes represent a stealth tax on Mum and Dad investors, 80 percent of whom own just one rental. The changes will squeeze the middle class and hurt renters.
“ACT is asking New Zealand’s 120,000 residential property investors to visit act.org.nz/housingstories and share what the new rules will mean for them and their tenants.
“The NZ Property Investors’ Federation estimates the cost to landlords who let out a $600,000 house will be an extra $6000 a year.
“Some will sell up, and those who choose to stay in the market will inevitably pass some or all of that extra cost onto tenants, making it harder for tenants trying to save for a home to build a deposit.
“Almost 13,000 people have now signed ACT’s petition to reinstate the ability for landlords to deduct mortgage interest from their tax bill.
“Thousand of stories will be percolating through the country as people get their heads around how Labour’s stealth tax will hurt Mum and Dad investors and their tenants.”