Quote Originally Posted by Bjauck View Post
I guess tradie businesses don't make the Kiwi dream of owner-occupier home ownership unaffordable for so many families? It is more of a political hot potato perhaps.

Perhaps some rental owners always have a high percentage mortgage so that that their rental properties seldom turn a net profit, whilst racking up leveraged capital gains? Maybe the ring fencing is aiming at that scenario.
The mortgage is irrelevant. It's the interest on the borrowings that are deductible. e.g. You can borrow on your own property and own a rental mortgage free, but still deduct the interest paid to calculate profit.