Investors will be able to deduct 80% of their interest expenses from rental income starting from April one next year with 100% deductibility a year after that. 80% is as good as 100% in the minds of most people therefore it seems reasonable to expect more investors to return more quickly.
But we still have the same problem I mentioned four weeks ago. Landlords face rapidly rising and high costs for running their rental businesses. Concerns continue to grow about rising maintenance costs, insurance premiums, and council rates. This is understandable in light of reports for instance of 30% increases in insurance premiums in the Wellington region being implemented at the moment, plus councils warning about further substantial increases in rates in order to cover deferred maintenance costs.