Angel Property

If you’re a property investor, you’ve likely heard the news: interest deductibility is back. As of 1 April 2025, landlords can once again claim 100% of interest expenses on loans used for rental properties—reinstating a key tax advantage that was previously phased out.

What You Can Claim - Landlords can now deduct the full interest cost on:

- Loans used to purchase residential rental properties
- Loans for renovations, maintenance, or upgrades (e.g. replacing a roof, adding insulation, or installing heating)
- Refinanced mortgages for rental properties

This applies whether the loan was taken recently or several years ago, as long as it relates directly to rental activity.

What You Can’t Claim - There are still some exclusions:

- Principal repayments – only the interest portion is deductible
- Loans used for personal expenses, even if the loan is secured against a rental property
- Interest on loans for other investments, like shares or unrelated businesses

For more info read our blog post here: https://angelpropertymanagers.co.nz/blog/interest-deductibility-returns-what-landlords-can-and-cant-claim/

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Foreigners generally cannot buy houses or land in New Zealand, but there are exceptions. New Zealanders, Australians, and Singaporeans can freely purchase property, while other foreign buyers have limited options or must apply for government approval.

Pros & Cons of Buying an Investment Property in NZ as a Foreigner

Pros:
- New Zealand house prices have shown consistent growth.
- Standalone homes are often more affordable than in many other countries.
- NZ properties offer significant tax advantages compared to other markets.

Cons:
- A higher deposit is required—typically 30-35%
- Buying options are very limited unless you’re a Kiwi, Australian, or Singaporean.
- Thinking about investing in NZ property? Make sure you understand the rules and requirements before making a move! 🇳🇿🏠