How These 2 Tax Changes Will Change The Property Market Ft. Matthew Harris | Midweek Episode
Apr 19, 2024
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Lighthouse’s Managing Director, Property Investor, and Developer, Matt Harris discusses the impact of two tax changes on the property market including interest deductibility laws, Bright Line rule extensions, and navigating new tax regulations. Insights on population growth, immigration influence, and strategies for property investors in the evolving market.
Mum and dad investors provide crucial affordable housing, essential to prevent reliance on state housing.
Tax changes like interest deductibility alterations aim to stabilize market dynamics and boost housing investment.
Deep dives
Significance of Mum and Dad Investors in Providing Affordable Housing
Mum and dad investors play a crucial role in the housing market, owning over 80% of New Zealand's housing stock and providing accommodation at a more affordable rate than the government. This highlights the necessity of having landlords to offer housing, especially with people in emergency accommodation, preventing an overreliance on state housing.
Impact of Tax Changes on Property Market Dynamics
Tax changes, including interest deductibility alterations, have significantly influenced the property market dynamics. Changes introduced by the Labor party and subsequent revisions by the national government have affected property investors. The return to 80% deductibility for mortgage interest aims to maintain housing supply in the market and encourage investment in accommodation.
Foreseeable Changes and Market Implications
The discussed changes in tax policies are anticipated to impact property investors and market conditions. Reinstating interest deductibility at 80% for the current tax year and eventually reaching 100% by the next year is poised to alleviate financial burdens on property investors and encourage accommodation supply. These alterations aim to ensure a more stable and sustainable property market amidst fluctuating economic factors.
In this week's Midweek Episode, we're back with Lighthouse’s Managing Director, Property Investor, and Developer, Matt Harris to break down the two tax changes that are going to change the property market.
The content in this podcast is the opinion of the hosts. It should not be treated as financial advice. It is important to take into consideration your own personal situation and goals before making any financial decisions.
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