[jadet]

I thought the only restrictions on foreign ownership were on waterfront and other "sensitive" properties. Also, if you get PR than you're a local, not a foreigner anymore I think.

There is only one tax deduction that I've heard of for property. It's if you generate income from your property then you can deduct the mortgage interest (and some other expenses I think). That is why so many of those bedsits are built into kiwi houses. If they are rented, they get the tax deduction.