Property, Invesment and Taxation


Rental properties' interest payments are income deductible (expenses againt income). However, interest payments of primary residence is not income deductible. This makes wealth concentration super easy. Because of this process, rental properties have lesser competition than it otherwise would be. Consequently, price control on the supply side (due to fewer competitors) becomes much stronger (landlords with mutiple units already have a huge advantage, not the 1 house landlords).

whereas, the first home buyers (FHB) usually suffer from small amount of principle pay down in the beginning of the mortgage life (3 quarters of the payment can be interest for the first 5 years or so). So, their interest (not the principle part of the payment) is paid by after tax income. It is the home owners' stability that are of our interests rather than the landlords who have scores of rental buildings.

GPC proposes to reverse that and make housing more affordable.

Interest payments of primary residence is income deductible. However, conditions may apply. For instance, first home buyer, first 3 or 5 years of a property, home of prices for the lowest 3 quartile of the market, no refinances, .....

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