On the 23March 2021, the New Zealand Government announced new policies with the aim of tilting the balance of the housing market towards first-home buyers. According to the Prime Minister, these would make residential property investment "less lucrative" for speculators.
The Government media release stated that the key policy changes were:
Revenue Minister David Parker said interest deductibility favours debt-driven residential property investment over more fully taxed and more productive investments. "To reduce investor demand for these investments, the Government will remove the advantage investors have over first home buyers." Tax experts have since clarified that the tax rule allowing the mortgage interest of a rental property owner to be a tax deduction was not a loophole, but standard practice allowed to all businesses. It was later revealed that Inland Revenue and Treasury officials had advised Government not to prevent rental property providers from being able to deduct mortgage interest costs. The policy impact statements from both Government departments showed that no analysis on the consequences of this major policy change has been completed. In order to help fill the information gap and provide some insight into what may happen due to these policy changes, the NZ Property Investors Federation (NZPIF) conducted a survey between 29 March and 2 April 202
The findings of this survey can be found here