Market revels in good news stories
“ Investors were pleased to see a commitment following a change in government that reversed interest limitation rules , enabling landlords to reclaim interest deductibility of residential property investments .
“ Following a staggered reintroduction , landlords can claim 100 per cent of their interest expenses from April 2025 , improving their balance sheets and incentivising these stakeholders to get back into the market , providing much-needed housing choices for tenants .
Zac Snelling Head of Property Management Ray White New Zealand
Following several years of frustration , stagnation and lacklustre returns for residential investors , a shift in the economic and political tide has recharged the residential
investment sector .
For landlords and tenants alike , the last few years have been marked by change that has hit household pockets in more ways than one , but a series of recent developments have seen some buzz in the market , and from a tax policy U-turn to new legislation aimed at improving flexibility and supply , the market is regaining its footing .
“ Landlords will be able to claim 100 per cent of their interest expenses from April 2025 , improving their balance sheets and incentivising these stakeholders to get back into the market .”
Zac Snelling , Ray White New Zealand Head of Property Management
“ This policy reversal aligns with positive capital growth projections for residential property values through to 2027 , likely contributing to a notable uptick in mortgage lending to residential investors .”
Ray White , New Zealand ’ s head of Property Management , Zac Snelling , believes Kiwis are seeing the start of a new phase in the property cycle . “ The past few years have been challenging , with limited incentives for landlords and investors to remain in the market , providing critical private housing for about 1.3 million tenants nationwide .
“ But now , we ’ re seeing a change – signalling a return to confidence and profitability for investors .”
INVESTOR CONFIDENCE RETURNS
A potent mix of policy change and recent market conditions have reignited interest in residential assets , which has waned in recent years owing to restrictive tax policies and costly regulatory changes .
Source : RBNZ , Macrobond , ANZ Research
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