If it happen the whole sector will see the 'adjustment'
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Its REALLY tough to know where to hide from higher interest rates and rampant inflation but I know one thing from my previous analysis on KPG...over the long term these shares and returns from them have a profoundly shocking track record of keeping pace with inflation and the rest of the property sector.
Latest Govt announcement out does not specifically provide special treatment for the build to rent sector so interest deductibility for new build to rent is limited to the first 20 years like any other new residential build.
they will get sold off but trade in a range as the increase yields and rate go up. Yo Yo.
perhaps not this stock but GMT and ARG are better bets and always have been.
Top in these stocks has probably already been reached for a while.
Yes, most shares will see price pressure from rising interest rates. The build-to-rent model could be adversely affected by proposed changes to consent process making it easier for smaller scale residential development to expand. KPG probably can load debt on other assets to get tax deductibility for interest?
They probably don't own any residential property. But that doesn't tell me what you mean by 'KPG probably can load debt on other asetts to get tax deductibility for interest.'
Any mortgage interest for purchasing commercial property will be deductible for them - what they use for security is totally irrelevant. As a company surely they are subject to the same tax laws as you or I are. So I'm trying to work out what you mean. Where do 'other asetts' come into it?
Fungus pudding the tax man sniffing out tax dodgers lol