Build-to-Rent Tax changes for landlords!! More flexibility for tenants!!
Did you know that if New Zealand could empower BTR(Build-to-Rent), we could provide thousands of new high quality and high density rental houses and deliver exactly the type of housing we need and help the housing shortage?
This concept, offering secure, long-term homes for Kiwi renters, with the average tenure for more than 10years. The properties are professionally managed and owned by investors who own shares in the development, rather than an individual unit.
-------Welcome to a new way of living------
Build to rent is an exciting new way of living that will provide the residents with the flexibility and convenience of renting, in addition with the stability and certainty that usually only comes with owning your own home. Is that not enough??
The family can put their roots down in the same community and the children can start up and finish the same school without worrying!!
Build to rent combines long-term leases, quality facilities and outstanding services to deliver a rental experience unlike anything previously seen in New Zealand.
This is also a good news for investors as the new tax legislation will provide an exemption to new and existing build-to-rent developments from the interest limitation rules in perpetuity, not only 20 years.
To qualify for this exemption, a build-to-rent development must meet the build-to-rent asset class definition which will be formalised in upcoming tax legislation.
To align with the introduction of the interest limitation rules, this exemption will apply retrospectively from 1 October 2021. Owners of build-to-rent assets can claim interest costs relating to these assets for as long as the asset is held and operated as a build-to-rent development.
• That tenants must be offered a fixed-term tenancy of at least 10 years with the ability to give 56 days’ notice of termination, but they may agree to or request other tenancy offers.
• The developments must have at least 20 dwellings in one or more buildings that comprise a single development, on either a single parcel of land or multiple contiguous parcels;
• the dwellings and any common land or facilities for those dwellings must have a single owner;
• dwellings can be held in one or more titles;
• the buildings that a build-to-rent dwelling is in, can include other dwellings or commercial premises that do not form part of the build-to-rent development;
• and the dwellings are used or available for rent under the Residential Tenancies Act;
There is an upcoming BTR community in Auckland as well (Next to Sylvia Park), in 2024.
The community will
contain 295 residential apartments across three separate buildings, up to twelve levels, with 119 basement car parks.