An Auckland developer says he may be forced to sell 85 city apartments due to tax changes axing interest cost deductibility on loans for existing or built residential property investments.
Mark Todd, co-founder of Ockham Residential, said the changes announced by Finance Minister Grant Robertson and Revenue Minister
David Parker did not recognise that the build to rent sector already existed.
"It is odd that [Housing Minister] Megan Woods supports the BTR sector to provide more new, warm, secure tenure properties but Parker is happy to kill off providers already delivering on Government policy," Todd complained.
"I may be forced to sell 85 rental places worth $60 million to $80m if interest which is the main cost of owning these buildings becomes non-deductible," said Todd referring to apartments the company owns in Sandringham, Grey Lynn, Ellerslie and Mt Albert.
But Parker and Woods reiterated how changes did not affect new builds.