New Zealand releases draft law aimed at cooling housing market - Nasdaq

SYDNEY, Sept 28 (Reuters) - The New Zealand government released draft legislation on Tuesday that seeks to disallow property investors to deduct mortgage interest from their taxable incomes, in its attempt to cool a red-hot housing market.

"The detailed proposals we are releasing today will further level the playing field for existing homes in favour of first home buyers," Finance Minister Grant Robertson said in a statement.

Billions in government stimulus, historically low interest rates and New Zealand's success with COVID-19 have inflated house prices, as returning Kiwis and investors parked their funds in real estate, pushing house prices up, far ahead of wage growth.

New Zealand in March hit investors with new taxes, and authorities pledged more support for first-home buyers by boosting supply.

(Reporting by Renju Jose; Editing by Muralikumar Anantharaman)

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source: https://www.nasdaq.com/articles/new-zealand-releases-draft-law-aimed-at-cooling-housing-market-2021-09-27

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