Quote Originally Posted by Bjauck View Post
I agree. In addition the ability to minimise taxable net rent to maximise untaxed capital gains has helped bring about Mom and Pop investments in a second house becoming their de facto pension schemes too.

It means would be owner occupiers can end up being outpriced and becoming renters, subject to NZ rental laws. So if new land owners want vacant possession or landlord family want to live in the renters' home, the renters are evicted. Codified feudalism?
NZ model of land rights management etc. is different than abroad. Very different to where I grew up in Canada. Land section prices should not amount to over half the price of the cost to construct the dwelling. Here in Christchurch every new section has a minimum $30K sub-divisional 'Developmental Contribution Fee". Then due to regulations, you have a whole stack of fees, surveying, drainage, and the battle of all mega's, the NZ Resource Mgt Act. You also have Iwi issues too on crown land that gets released. So it's not only the discriminant taxation issue, but also you have local councils that have no vested interested in making land affordable. Likewise at the national Parliament level - any cut on tax take that the municipal loses, you can be sure Wellington isn't going to transfer credit that loss.

How's the cost of water running in Auckland? A family can easily pay $2,000 - $3,000 in water rates (use and discharge sewer) a year.