Labour rules out limiting interest deductibility if re-elected

Labour has just announced that revisiting the removal of interest deductibility was off the table if re-elected.

*Exhale*

I can't begin to describe how much this distorted the property landscape in New Zealand. Treasury and IRD advised against the policy at the time. Thousands of rentals were shunted into social housing, creating waiting lists and shortages with rising rents for standard homes, and a cottage industry of community housing providers with seemingly few checks and balances on spending.

With new builds as the other exemption, there was an immediate boom in townhouse and apartment construction, with building supplies shortages (remember trying to get GIB?) and rampant construction price increases. Many owners of existing properties sold, while others hunkered down and stopped all spending elsewhere to try and get through it.

We all owe the NZ Property Investors Federation a huge thank you. 

"Advocacy" is a boring word; think of it as getting in front of decision makers and talking through the impact of their decisions. 

The tireless team at NZPIF, who are a non-profit funded entirely by members like you, have been making it a priority to get in front of policy makers from all parties for the last several years, and are starting to see an impact.

Quick Video Recap - Deductability and other Election Issues

I grabbed a hold of Matt Ball from the Federation team today to look into just how much work went into this announcement, as well as several other policies the Federation is pushing parties to adopt. Ironically, Matt was just about to dash off to Parliament for yet another meeting. Have a quick watch...

Use the Property Investors Association discounts and make money on your membership. 

I just got quoted a $500 discount on my Initio insurance on one rental through my membership. I own multiple rentals, so those discounts really add up. My fee for a year's membership is tax-deductible and well under $300. 

Being a member of your PIA joins chattels depreciation as a way to get something for nothing. There aren't many!

Find your local PIA here and get similar savings. I hear the Bunnings dicounts are getting even more juicy for members as well.