Originally Posted by
fungus pudding
Yep. For those who earn a sufficiently high salary and can raise the initial deposit these days, in NZ, under this government more than ever, owner-occupied home ownership is the foundation upon which a bigger nest egg can be built. Why?
1. Low interest rates on loans for residential real estate.
2. Untaxed annual return from the investment (imputed net rent)
3. Leveraged capital gain on equity.
It is also the tax efficient way of saving for retirement. Owner occupied homes (no matter what their value) are excluded from asset testing for some benefits/subsidies.