Auckland housing market

[Bjauck]

Tax is always based on cumulative income. Real estate is no different in any way from other businesses or investments.

Your marginal rate of income tax is certainly dependent on your total income. Like investments in real estate, investment in bonds and other financial arrangements are indeed taxed on their "income" but, for the fixed interest financial arrangement investment, income includes capital gain as well as interest! There are many tax consequence differences between investing in shares, fixed interest and real estate. The tax take as a percent of gains (capital and income) differs markedly between these asset classes.

And do not assume it provides automatic gains in value.
This roller coaster graph has been around for a while but it's a good reminder that it's not all beer and skittles.

https://www.youtube.com/watch?v=kUldGc06S3U

Look for the years as you ride.

Of course, both shares and property have had their down times and periods of angst for investors. So indeed has fixed interest - the Credit crunch and NZ finance company woes are well known. Is today's money in the big Aussie bank as safe as it used to be, when so much is lent out on mortgage to people buying in the current highly priced housing market?

[NeverQuestion]

Your marginal rate of income tax is certainly dependent on your total income. Like investments in real estate, investment in bonds and other financial arrangements are indeed taxed on their "income" but, for the fixed interest financial arrangement investment, income includes capital gain as well as interest! There are many tax consequence differences between investing in shares, fixed interest and real estate. The tax take as a percent of gains (capital and income) differs markedly between these asset classes.

Of course, both shares and property have had their down times and periods of angst for investors. So indeed has fixed interest - the Credit crunch and NZ finance company woes are well known. Is today's money in the big Aussie bank as safe as it used to be, when so much is lent out on mortgage to people buying in the current highly priced housing market?

Could Brexit spell doom for the Auckland property market? With Trillions of dollars wiped off the world markets will overseas banks start pulling in loans with other banks causing our local banks to start asking for money back?

Or will this lead to further cuts and the next stop for the Auckland property market as 2 million, and the affordable price in Nick Smiths head being 1 million for first home buyers?

I'm sure the Government will say young New Zealanders need to stop asking for handouts.. but in reality I don't want a handout I just want it to be a fair chance to own a home.. I have 40 K ready to go but good luck finding a place in that range..

[Bjauck]

It is still an unknown at the moment. If Brexit causes international investors to pull in their horns, then maybe the international investors (the ones the government claims have little effect) will reduce their involvement in the market. UK-based Kiwis will have fewer NZ dollars to invest in NZ. So there could possibly be demand-side cooling as well.

[macduffy]

[QUOTEI'm sure the Government will say young New Zealanders need to stop asking for handouts.. but in reality I don't want a handout I just want it to be a fair chance to own a home.. I have 40 K ready to go but good luck finding a place in that range.. ][/QUOTE]

Surely it's not beyond the wit of a team of bright, young civil servants - all double-degrees these days - to devise a scheme to utilise some of this surplus state land to build modest, 3 bedroom homes, one livingroom, one bathroom, no en-suite or home theatre; cluster/cross-lease/ duplex or whatever utilises the land most efficiently. Sale restricted to first home occupants, sales embargoed for say 3 years, unless back to the state at original purchase price. Ask Rymans how it's done, if necessary!

[SCHUMACHER]

UK Based Kiwis are such a small percentage % that it wont affect NZ economy - even our exports are not that big however with GB leaving the EU we have more opportunity to negotiate and a chance to beefing up our exports (trade deals) to the UK as does the UK free from the constraints of the EU and their control on UK govt spendng, fishing and border control so as nigel Ferage says , the UK will be much better off leaving the EU and taking control back as an Independant sovereign country to have there own government and people within the UK make decisions that best affect the growth of the nation , much like NZ Australia etc ...

EU is a shambles and has not worked for most of those countries in the EU - just have to look at Greece / Portugal 300% debt to GDP (laughable) Spain also high debt to GDP ratios showing that the European Union spanningn 3 decades has not functioned as intended - the EU have done nothing but take money from these countries and to be fair i think its more a dictatorship than democracy - so effectively the UK have fought for freedom and democracy - here here !! i say jolly good show ol' chap lol Finally someone took on the "establishment " which was sucking them dry anyway - there is another discussion to be had around this and that is "Quantitative easing " money printing fiasco - thats what will inevitably happen for those countries in strife like Spain and Portugal - So its fair to say the Euro will continue to devalue as they turn on the money printing machines to try and stimulate the economy as times get tough

P.S there has been far too much scaremongering in the media around the world and the reality is that trade agreements wont disappear anyway as it would hurt the EU as much as GB even though GB can explore other wider and bigger markets

P.P.S Brexit cant and wont spell doom for NZ property market! the thing that is driving out property market are low interest rates and demand for NZ property -

ive always said for years that we are quite different than other countries in terms of property investment and its always been a safe bet for last 80 years to put money into property in this country - sure raising deposit requirements will slow it down for NZers but not for cashed up Asians, Indians, and europeans who have alot more riches than us !!

At worst we could enter a recession and a housing cooling or correction of say 10% which wouldnt hurt in the bigger scheme of things - right throughout property investment history in NZ we have seen cooling off periods and flattening of property prices but as always it will slowly move up over time - even a period where property stagnates for 10 years is ok with me

but for any of this to happen there would have to be rising interest rates and pressure on existing home owners with mortgages and job insecurity for that to happen IMO

[macduffy]

][/QUOTE]

Surely it's not beyond the wit of a team of bright, young civil servants - all double-degrees these days - to devise a scheme to utilise some of this surplus state land to build modest, 3 bedroom homes, one livingroom, one bathroom, no en-suite or home theatre; cluster/cross-lease/ duplex or whatever utilises the land most efficiently. Sale restricted to first home occupants, sales embargoed for say 3 years, unless back to the state at original purchase price. Ask Rymans how it's done, if necessary![/QUOTE]

Who, in the Labour party do I complain to for pinching my cunning plan to provide more housing for first time Auckland home buyers?

http://www.nzherald.co.nz/business/n...ectid=11671740

[NeverQuestion]

]

Surely it's not beyond the wit of a team of bright, young civil servants - all double-degrees these days - to devise a scheme to utilise some of this surplus state land to build modest, 3 bedroom homes, one livingroom, one bathroom, no en-suite or home theatre; cluster/cross-lease/ duplex or whatever utilises the land most efficiently. Sale restricted to first home occupants, sales embargoed for say 3 years, unless back to the state at original purchase price. Ask Rymans how it's done, if necessary![/QUOTE]

Who, in the Labour party do I complain to for pinching my cunning plan to provide more housing for first time Auckland home buyers?

http://www.nzherald.co.nz/business/n...ectid=11671740[/QUOTE]

Perhaps they should make it that First Home Buyers mean people who have lived in NZ for 3 years at least

At the moment you have people coming into NZ and getting residency because they have X amount in their bank account

Buying a house cheap and selling it for a massive profit because they are concided "First Home Buyer" by National

Also they need to build apartments 50m2 or over otherwise you can't get the loan without 50% deposit

[macduffy]

Here's an nteresting dissertation on the Australian housing market. Worth reading.
https://dpsi7pmz5b6vt.cloudfront.net...-_May_2016.pdf

[SCHUMACHER]

NZ property market is still in full swing as its a simple case of Supply verses demand and until this changes it will remain strong unless the government rstrict the immigrant numbers or make it so hard to buy a house ( cant see the latter happening, as it defies logic)

We need to build at a faster rate output to curb demand - simple i would have thought

[SCHUMACHER]

P.S I read an article somewhere where Americans are SERIOUSLY considering coming to live in NZ - quick shut the gates , ESPECIALLY if they are ex Wall Street Bankers LOL