Sunday, March 28, 2021

Labour thinks landlords are pernicious cash cows

A media report yesterday talked about landlords "threatening" to hike rents in response to to Labour's closing the "loophole" of loan interest deductibility.

Both of those terms are misleading. The first is an effort to paint landlords as thugs. The second, as tax dodgers.

Landlords with mortgaged properties will have no choice but to hike rents or sell. They cannot simply absorb further expenses. For instance, the government never mentions how quickly insurance has escalated.  And rental property insurance is more expensive than owner occupied insurance. Meanwhile rates continue to grow over and above the inflation rate. Not to mention the significant property maintenance costs imposed by this government.

I can't wait to stop being a landlord. The only reason we are hanging in there is because we care about our tenants and don't want to evict them. 

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