5 benefits to property investors from the new coalition government

Finally, National, NZFirst, and Act have announced a coalition government and property investors and tenants now have clarity on key issues affecting them both. The 5 benefits to property investors are:

1. mortgage interest deductibility has been sped up

National’s election manifesto said investors would have been able to claim 50% in the current tax year, 50% in the 2024/25 tax year, 75% in 2025/26, and finally 100% in 2026/27. That’s changed. Now, the Coalition will allow investors to claim 60% this tax year, 80% in 2024/25 and 100% in 2025/26. This is welcome news for investors struggling with high interest rates.

2. brightline test reduced to 2 years

So far there has been no word from the Coalition on this policy, which suggests that National’s policy of reducing the threshold from 10 years to 2 years will pass into law.

3. The 90-day notice is back

The no cause 90-day notice will again allow landlords to end periodic tenancies without reason or applying to Tenancy Tribunal. This will allow landlords to take more risk selecting tenants because if they don’t work out it is easier to get remove them from the tenancy.

4. 28 day notice becomes 21 days

If a tenant on a periodic tenancy wants to move then they will only need to give 21 days’ notice, instead of the current 28 days.

5. Vacant possession sped up

If a landlord is selling, renovating or redeveloping the property then the notice period given to the tenants will reduce from 90 to 42 days.