It’s a bribe: landlords
andlords fear “working class” renters could be out on the street and the face of neighbourhoods will change as a loophole in new tax rules sway in the favour of properties used for social housing.
One rental agency owner called the move a “bribe”, as interest off those mortgages was still taxdeductible despite the Government binning the kickback for most landlords.
Earlier this month, new rules came into force to stop landlords from claiming back mortgage interest as an expense.
The regulations would be phased in over four years but there were exemptions for new builds and properties leased to community housing providers for public, emergency and transitional housing.
A property investor said it was a huge incentive to drive private landlords into providing social housing and to massage those numbers.
The Government said leases and redirects of private property were increasingly rare. Figures show nationwide there were 922 leases across New Zealand since June 2017 compared to 6825 new public houses.
Tauranga Property Investors Association president Juli Tolley said, in her opinion, the Government had manipulated the law to drive private landlords into providing social housing.
She believed it wouldn’t work due in part to rules and risky tenants but there were still investors who would put some houses into the mix.
“That does decrease property availability for the working class.”
Tauranga Rentals owner Dan Lusby said the Government was robbing Peter to pay Paul and good tenants could suffer.
“There is a shortage of social housing and if they take it out of our pool it’s just going to make it worse. The Government doesn’t seem to care about working people.”
Rotorua Rentals director Pauline Evans said in her view the exemptions were a corrupt idea. “I consider this a massive bribe, in total conflict with their wishes that we are all on the same team, with no racism, discrimination or inequality.”
Evans said it could endanger the tenancies of those working families renting and it was an assault on the freedom of New Zealanders. “There is already high levels of stress in our industry, tenants are fearful that owners will sell, or that rents will continue to rise, both are a reality.” Rotorua Property Investors Association president Debbie Van Den Broek said this was an attempt by the Government to increase social housing and massage the