Originally Posted by
skid
If you buy a house to do up and rent for a year (or three or five) you are considered an investor (trader) and you are taxed on the gains because the taxman considers that speculating--just like holding shares short term (trading)--If you bought and held you Apple shares for long term and sell for a substantial profit ,you are not taxed on the capital gain as far as i know--short term -yes(just like housing)
I believe they should legislate to stop (or make it very expensive)to buy for foreigners who are not residents,but the normal Kiwi family home is going to be a stretch.
In terms of investment properties--i believe those who have not done it, maybe dont realize what is involved--alot have tried it and given up.
You dont just get on your computer and check to see how much your investment has gone up (or down)-like shares.
Maintenance costs can be a killer-finding and keeping tenants can be hard--actually anything involving people (tenants) well..dont even get me started.
The tenancy laws are heavily weighted in favor of the tenant--those with the wrong intentions can easily do you out of a substantial amount of dosh.
Its a relatively illiquid asset that has the potential to lose alot of value(It happened in the States and it can happen here)
Im not complaining but on the other hand its not all easy sailing.
You have some points,but are also missing some