Tenants can break the tenancy agreement at any time by giving a 56-day notice period.
“We believe security of tenure is critical for people who are renting. This requirement will enable people to settle and personalise their homes, reduce how often they must find a new place to live and all those associated moving costs, especially as people face cost of living challenges, and help them to build and maintain connection to their community.
“We exempt new builds from the interest limitation rules for a period of 20 years to help steer investors away from the limited pool of existing properties and towards new housing supply to get Aotearoa New Zealand out of a housing crisis that was decades in the making.”
Interest will not be phased out for existing build-to-rent assets.
Taxpayers who hold existing build-to-rent assets will not be subject to the interest limitation rules from 1 October 2021 to 31 March 2022.
For new build-to-rent assets, initial investors will be able to deduct interest for as long as they hold an asset and operate it as a build-to-rent development. Any subsequent investor can deduct interest for as long as the asset is held and operated as a build-to-rent development.
Woods said the build-to-rent sector would help bring in more houses that were affordable for low to moderate-income households.
“Build-to-rent can help to continue the current momentum of new supply and improve the quality of rental housing with new warm, dry, secure homes.”
While it is unknown how many or if any existing build-to-rent developments currently meet the minimum 10-year tenancy requirement, there will be a transition period allowing them to fulfil them.
Property Council New Zealand chief executive Leonie Freeman said the tax break was “one of the best levers” in the build-to-rent scheme.
“We support the government’s desire to enable build-to-rent in order to provide warm, dry rental homes that offer Kiwis long-term security of tenure.”
Freeman said the announcement could result in 25,000 new homes being built over the next 10 years.
She said the move would level the playing field between commercial, retail and residential property investments.
“This will ensure there is a lot more interest from the larger organisations to invest in this sector.
The new policy could also attract investors to social housing developments, Freeman said.
RNZ
Government announces tax break for investors supplying new long-term rentals & Latest News Update
Government announces tax break for investors supplying new long-term rentals & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Government announces tax break for investors supplying new long-term rentals & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links