Labour's landlord tax deductible u-turn a 'huge relief' for both landlords and renters - property investors

Labour's u-turn on interest deductibility is being seen as a huge relief for both landlords and renters. 

The party's confirmed they won't make changes to current rules, which were changed by the Coalition to allow 100% of interest to be claimed on landlords' tax bills.   

Hipkins said yesterday it doesn't need changing back because under Labour, landlords would pay a Capital Gains Tax. 

NZ Property Investors Federation's Matt Ball told Mike Hosking the announcement came out of left field, but it is good news. 

He says reducing the deductible would be a straight hit to the bottom line, and the consequences are passed straight through to the tenant.  

Ball says every renter should breathe a sigh of relief – they're now more secure in their home, rents won't skyrocket, and landlords can now get on and invest in and improve their property.  

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