Government looks to scrap “tax break” for property investors
Finance Minister Michael Cullen has backed a call to “ring-fence” losses on investment properties – meaning they could no longer be offset against other income such as wages and salaries – but few other parties appear warm to the idea.
To be honest, without the ability to offset losses against tax, the only option would be to put rent up to the point where it covers expenses. Which would mean more expensive rent, in general.
It may take the heat out of the property market, but it also has a good chance of killing the rental market, by forcing rents up. Landlords are not usually in the game for charity reasons.
