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Changes are coming…
Interest tax deductibility. We mentioned in the last news snippet, the interest tax deductibility rules for residential property have changed and interest limitations are being phased back out.
From the 1st April 2024 – 31st March 2025 you can claim 80% of your interest as an expense and from the 1st April 2025 onwards it will be back to 100%.
Bright-line. The bright-line property rule has also changed. From 1st July 2024 the bright-line property rule will only apply if the property is sold within 2 years of purchasing. (Pre July 1st 2024 the current bright-line periods continue to apply).
As always, please check your own personal circumstances with a Financial Advisor, as these rules are complex and have exemptions and quirks. You must ensure that you receive advice tailored to your financial position before making any decisions.
Residential Tenancies Act updates
The Amendment Bill is being developed by the Ministry of Housing for introduction to Parliament in May 2024. IF the Bill passes, it could become an Act in late 2024.
The bill includes the following;
(1) Reintroducing 90-day ‘no cause’ terminations for periodic tenancies, meaning owners can end a periodic tenancy without requiring a specific reason.
(2) Reintroducing owners’ ability to give notice to end a fixed-term tenancy at the end of the term without requiring a specific reason.
(3) Notice periods for when an owner wishes to either move back into their property or have an unconditional agreement for sale requiring vacant possession will revert back to 42 days. This is a changes from the current 63 days and 90 days respectively.
(4) Returning tenants’ notice period for ending a periodic tenancy to 21 days.
(5) Making it easier for owners to accept tenants with pets by introducing pet bonds which will be 2 week’s on top of the current 4 week’s bond collected. Owners will still need to consent to tenants having a pet, however consent can only be withheld on ‘reasonable grounds”. You can read the Beehive’s announcement Pets.
For further information on RTA Amendments read more HUD updates.
