Housing announcement creates hurdles for Build-to-Rent

Progress on Build-to-Rent (BTR) was made when Property Council members met with the Minister of Housing Hon Dr Megan Woods back in March. However, the recent housing announcement could have potentially added another barrier to large-scale BTR development in New Zealand.

Within hours of the announcement, MHUD clarified to PCNZ’s Build-to-Rent working group that interest deductibility announcements were not intended to affect new builds and that IRD would receive feedback, but that did not materially address concerns around the second-hand BTR investment market.

Fortunately, Property Council sits inside an ongoing small Ministerial/MHUD reference group on BTR and we expect to be able to keep tabling our concerns on this issue, along with barriers to liquidity from the Overseas Investment Act, and our clear call for the creation of a new asset class (where all these uncertainties can be cleared up once and for all).

If you’re a member, get the latest on BTR by joining our working group who will help formulate Property Council’s submission to the IRD on interest deductibility and other relevant aspects.

Contact Natalia Tropotova for further information.

 

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Image credit: Kiwi Property Sylvia Park development

 

 

Author | Natalia Tropotova

Natalia has a Master of Public Policy from the University of Auckland, a Bachelor of Arts (1st Class Honours) from the University of Canterbury with a Major in Education and a Double Minor in Psychology and Media and Communication. She joined Property Council from Auckland Council, with experience working as a Policy Analyst and Senior Advisor to Voter Participation.

As a Senior Advocacy Advisor, Natalia looks after both national workstreams, such as infrastructure funding, as well as leading local advocacy projects for the South Island and Bay of Plenty region.

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