Nat/act/nzf 2023

[thegreatestben]

All these salt of the earth business owners.

Oh wait its not a business and it takes 10% of the effort with 0% of the tax.

Here you go Panda, as you can see I'm really raking it in as a landlord. Good thing I didn't have to work hard to be in a position to develop some new build rentals and didn't provide work for tax generating trades and services along the way. I guess since I'm basically a charity I should pay tax either way!

get rich quick.jpg

[Bjauck]

You started by saying "Good luck getting a loan from the bank to borrow money to buy shares, on the security of the shares themselves."

You don't acknowledge that you are incorrect. Instead you double down implying that margin lending has risks, of course it does, all borrowing does, and which are all fully disclosed in the public domain!

Then you say the margin lending rates are "double" mortgage lending rates. Incorrect, the margin lending rate from ASB is 9.35% which is not double most mortgage rates, and is considerably less than most personal loan interest rates, or business borrowing interest rates.

As I said, good luck with getting a loan. Even better luck perhaps needed with margin lending through their online trading platforms. Have you had experience of the ASB margin lending facility?

[causecelebre]

All these salt of the earth business owners.

Oh wait its not a business and it takes 10% of the effort with 0% of the tax.

Don't hate the players, hate the game

Oh wait and 100% of the risk

[dobby41]

It came about because of pay day lenders and other predatory outfits.

But rather than bring in some new rules to target the unscrupulous lenders who got desperate consumers into a debt trap, they hit the nuclear button and made lending incredibly difficult.

I agree that the rules went a bit far with mainstream banks but this was addressed (a bit) later.
So the Coalition of Chaos 'fixes' it by throwing it all out?
How will the changes address the primary target - the unscrupulous lenders who don't care if you can't afford the horrendous interest rates and haven't a clue that that is the case?

[dobby41]

Which LL evicts good tenants for no cause?

Good folk fear not.

Depends on your definition of good.
Many LLs will evict if the tenant raises issues with the quality of the house (ie doesn't meet the minimum standard) or want something fixed.
They are standing up for their rights rather than 'bad'.
This has a chilling effect.

[dobby41]

Here you go Panda, as you can see I'm really raking it in as a landlord. Good thing I didn't have to work hard to be in a position to develop some new build rentals and didn't provide work for tax generating trades and services along the way. I guess since I'm basically a charity I should pay tax either way!

So you're happy with the losses because you want to house someone?
Doubt it - you're looking for tax-free capital gain.

[Baa_Baa]

As I said, good luck with getting a loan. Even better luck perhaps needed with margin lending through their online trading platforms. Have you had experience of the ASB margin lending facility?

Good grief, margin lending IS a loan, secured by the equities owned. And I've shown that it is readily accessible and less than mortgages, personal, or business interest rates.

[dobby41]

If tenants turn out to bad, doesn’t the current legislation allow the tenancy to be ended if there is serious damage, three weeks non-payment of rent, or if a 14 day notice to remedy a breach has passed? I have no experience but In your experience does the tribunal make in difficult for landlords to seek redress? What is the process to appoint tribunal adjudicators (is it open to political interference)?

I certainly agree that with the high investment value wrapped up in a residential property, I would be protective of it, if I were an owner. How do you think we should cope with chronically indigent tenants. They would become a social issue, one way or another.

The need to build more housing to relieve overcrowding and cope with the growing population is an ongoing issue.

It is possible to get rid of 'bad' tenants now!
Yes we need more affordable housing - that is the issue, not more landlords or rental housing.

[thegreatestben]

So you're happy with the losses because you want to house someone?
Doubt it - you're looking for tax-free capital gain.

I am not at all happy with the losses! This year is probably going to put me backwards about $50k with my interest rate now 6.95 where the entire 23/24 year it was 4.99%
I'd actually be pretty stoked to make a profit from the rent and never sell. If I could have great quality tenants that I can provide high quality reliable housing for, ideally they would be on their journey to home ownership or perhaps they aren't permanent residents so they can't buy.

At the end of the day I'd also pay a tax but at this rate I never will because tax is on profit and we've got it so wrong that I might never make one. I think the bank is the only one winning.

[Bjauck]

Good grief, margin lending IS a loan, secured by the equities owned. And I've shown that it is readily accessible and less than mortgages, personal, or business interest rates.

18 month term mortgage from ASB currently is 6.89%. What is the current interest rate for an 18 month term margin lending loan?