Median price up 19.3% in 2020 so house 'earned' $121,000; Homes 'earned' $250b tax-free since Labour elected; Rents up 3.4% since lockdown & up 10% since Sept 2017, despite mortgage rates halving
Five years after an injury at age 50 left me unable to carry out my occupation as a teacher, I concluded that the only occupation I could do was 'property investor'. I read all the books, including one by Rolf de Roos, who is now 65, and concluded straight after completing his doctorate in electrical engineering that he was better off being a property investor than taking an engineering job at $32,000 pa when he earned $33,000 pa the previous year from property.
Now one of my children is a doctor, and one an engineer. We have told them that we would be hugely disappointed if they did not work in their respective careers until they reach a respectable retirement age as they need to make the world a better place etc.
Agree with all you say. It makes me cringe it is so true.
I wrote to John Key about this. I told Robin Oliver of the tax working group that the government really wanted to and should target property investors. Lo and behold, he and two others dissented from the majority and recommended just this. Jacinda Ardern now had something to hang her coat on. Didn't happen. I thought Grant Robertson approaching the Reserve bank was a masterly way around Jacinda Ardern's stance, but nothing came of that.
The negative effects our national myopia towards housing investment has wrought on New Zealand's society and economy must be huge. When such a high percentage of many peoples pay-cheques goes straight to the banks (either as their own, or their landlords mortgage interest), and the bulk of the rest of it to a grocery cartel, surely there isn't much left to spend on growing the economy in other directions.
Having all of our capital sitting idle in rental property mustn't be doing us any favours. Is there much information out there about how our collective behaviour is stunting our economic prospects ?
I have been a Labour supporter all my voting life... I am a Jacinda supporter BUT... how could she have crumbled over CGT? or Wealth Tax? or anything (?) over her political time that would allow this fat cat property market to go unbridled and tax free??? She must either reneg or retire to allow some sense to prevail!
My first experience with the real estate casino was in the 80s in Vancouver BC. I put $25000 down on a $108000 condo which I sold a year and a half later for $158000. My 25 grand turned into 75 grand without doing anything. Canada has a 50% capital gains tax, so I declared a $25000 capital gain which was taxed at my income tax rate, maybe 30%, so I was left with about $67500. What a deal, but now I find it somewhat disgusting. It's just wrong that real estate should be a commodity. I'm now opposed to the whole show and no longer play the game. NZ should have at least a 50% cgt on unearned profit, and if the gov was really serious about the housing crisis, it would be 100%, which would end speculation and the realtor "profession". But the gov isn't serious, is it? Ultimately, our government is responsible for facilitating the real estate casino, and therefore also responsible for the housing crisis.
I don't know what's going on with this issue, as a property owner, I cringe at the possibility of being taxed for the sacrifices I've made to own my one single property. Put your 'wealth tax' or a developers tax on those that own more than one property, or make it harder for the buyer to own more than one in the first instance. If it cost more to own more than one (or two) properties, it would be a 'win-win' because the increased tax would bring govt more $$$ to put into housing and investors would think twice about buying more properties therefore more housing would be available for the first time buyers. Its not rocket science. How come I can work this out and no one else can?
I like how you are experimenting with how you present important issues.
Sounds like a fiscal distaster ahead!
Not necessarily. It depends what we do about the housing crisis.
That's precisely what I meant, i.e. if we carry on as we are.
Agree with it all.
Five years after an injury at age 50 left me unable to carry out my occupation as a teacher, I concluded that the only occupation I could do was 'property investor'. I read all the books, including one by Rolf de Roos, who is now 65, and concluded straight after completing his doctorate in electrical engineering that he was better off being a property investor than taking an engineering job at $32,000 pa when he earned $33,000 pa the previous year from property.
Now one of my children is a doctor, and one an engineer. We have told them that we would be hugely disappointed if they did not work in their respective careers until they reach a respectable retirement age as they need to make the world a better place etc.
Agree with all you say. It makes me cringe it is so true.
I wrote to John Key about this. I told Robin Oliver of the tax working group that the government really wanted to and should target property investors. Lo and behold, he and two others dissented from the majority and recommended just this. Jacinda Ardern now had something to hang her coat on. Didn't happen. I thought Grant Robertson approaching the Reserve bank was a masterly way around Jacinda Ardern's stance, but nothing came of that.
Keep up the good work Bernard Hickey
It's certainly our national shame.
The negative effects our national myopia towards housing investment has wrought on New Zealand's society and economy must be huge. When such a high percentage of many peoples pay-cheques goes straight to the banks (either as their own, or their landlords mortgage interest), and the bulk of the rest of it to a grocery cartel, surely there isn't much left to spend on growing the economy in other directions.
Having all of our capital sitting idle in rental property mustn't be doing us any favours. Is there much information out there about how our collective behaviour is stunting our economic prospects ?
I have been a Labour supporter all my voting life... I am a Jacinda supporter BUT... how could she have crumbled over CGT? or Wealth Tax? or anything (?) over her political time that would allow this fat cat property market to go unbridled and tax free??? She must either reneg or retire to allow some sense to prevail!
My first experience with the real estate casino was in the 80s in Vancouver BC. I put $25000 down on a $108000 condo which I sold a year and a half later for $158000. My 25 grand turned into 75 grand without doing anything. Canada has a 50% capital gains tax, so I declared a $25000 capital gain which was taxed at my income tax rate, maybe 30%, so I was left with about $67500. What a deal, but now I find it somewhat disgusting. It's just wrong that real estate should be a commodity. I'm now opposed to the whole show and no longer play the game. NZ should have at least a 50% cgt on unearned profit, and if the gov was really serious about the housing crisis, it would be 100%, which would end speculation and the realtor "profession". But the gov isn't serious, is it? Ultimately, our government is responsible for facilitating the real estate casino, and therefore also responsible for the housing crisis.
I don't know what's going on with this issue, as a property owner, I cringe at the possibility of being taxed for the sacrifices I've made to own my one single property. Put your 'wealth tax' or a developers tax on those that own more than one property, or make it harder for the buyer to own more than one in the first instance. If it cost more to own more than one (or two) properties, it would be a 'win-win' because the increased tax would bring govt more $$$ to put into housing and investors would think twice about buying more properties therefore more housing would be available for the first time buyers. Its not rocket science. How come I can work this out and no one else can?
Finally Bernard has written something sensible after all these years, well done