The recent changes to government legislation now make it a lot more attractive for landlords to own new housing stock rather than older properties. Some of the most significant changes come for property investors. Until now, they have been able to claim back the interest cost of a home loan against the rent received on the property, significantly reducing their tax bills. Put simply, if they earned $20,000 a year in rent from a property but paid $12,000 in home loan interest, only $8000 of the rental income would be subject to tax.
Under the new rules, the whole $20,000 would be. No deductibility will be available for properties bought after March 27, and the amount that can be deducted will drop for other properties until it is phased out in four years’ time. Cabinet are now consulting on new builds being exempt.
The good new is that Pragma have a range of new house and land packages which would be ideal as investments. These range from studio and one-bedroom apartments for under $450k to 2-bed, 2-bath townhouses which are perfect for shared living, along with 3 and 4-bedroom houses.
Because these are brand new, they won’t be subject to the same interest rate tax issues as existing rental properties. For some who are already landlords, this could even be a good opportunity to sell their existing housing stock while prices and demand are high, and buy new properties so they can continue to enjoy the tax breaks.
Pragma are a proudly Hamilton owned family-run company with a commitment to providing quality, affordable housing in the city, particularly in the areas of new growth and development which are providing such a boost to the region. Because this is a family business they are 100% committed to the area and the people, and this is reflected in the quality of their homes and their relationships with their clients, so for
more information on house and land packages Hamilton, new homes for sale and new houses for sale in Hamilton please go to https://pragmahomes.co.nz .