New Zealand implements new rules to level the playing field towards first time homebuyers and against investors

New Zealand will prevent property investors from deduction mortgage interest from their rental income starting from October 1.This is the latest in a series of efforts to reduce enthusiasm among investors to buy existing houses thereby giving a level playing field for first-home buyers.In March the country introduced the bright-line rule which taxes gains on investor properties held for less than 10 years as income (vs capital gains).They also required investors to have a 40% minimum down payment.All property transactions require an Internal Revenue IRD# (equivalent to SIN#) to ensure qualification for the principal residence deduction on owner occupied homes. For foreign property owners, they will need to apply for an IRD number, with a prerequisite that they open a New Zealand bank account so that they are subject to the bank’s anti-money laundering rules. Also, all non-resident buyers and sellers must provide their tax identification number from their home country, along with current identification, such as a passport. Foreign investors will also have a 33% withholding tax on any property investment gains.https://ift.tt/3iolfKY via /r/canadahousing https://ift.tt/3uut1aY