A better investment market

“In the existing economic climate, renting has emerged as a more cost-effective alternative to property ownership and reinstatement of interest deductibility is of crucial signifience to the rental sector.

Corelogic statistics show the average family allocates 49% of its income to servicing a mortgage, contrasted with 22% spent on rental payments.

“Many rental property owners find themselves financially stretched, as they try to figure out how to supplement their mortgage payments to keep tenants living in their homes,” Horsbrugh says.

“The policy is fair. It is not a 'tax cut' for property investors; rather, it ensures that property investors contribute their fair share of taxes on profits. It will also have positive implications renters, as it mitigates the upward pressure on rental prices.