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Old 24th March 2021, 02:46     #1065
Ab
A mariachi ogre snorkel
 
Quote:
The bright-line test - the tax on investment property - will be increased from five years to 10 years, but it will be kept at five for new-build investment properties. The family home will still be exempt

The Government will remove the ability for property investors to offset their interest expenses against their rental income when they are calculating their tax
Quote:
Originally Posted by fixed_truth
Doesn't sound like nothing to me.
More investors will hang on to their properties for ten years instead of five. What do you think that will do to housing availability?

If interest expenses can no longer be offset against rental income for tax, that means renting houses out just became more expensive. What do you think that will do to rents? Landlords will just put up the rents, because they know there's insane demand.
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