Quote:
Originally Posted by
SBQ
I don't buy into the argument of funneling all your $ into your home by buying a mansion size expensive home. That recipe just doesn't work because higher end / pricier homes are far and few and attract less capital gain over the long term. The reality what makes prices go is simply location. The largest house with the largest investment of it's kinds means nothing if it's in a poor location.
Location, or more specifically future demand is the key to the recipe - and it will help ensure the recipe work
Quote:
Originally Posted by
SBQ
Even in a new sub-divisions one would be foolish to build extravagant when there's no knowing what the demand will be in 10 or 20 years time (ie. Pegasus area north of Christchurch).
A golden rule is to avoid new subdivisions - simply because you dont know who your neighbours are going to be.
Quote:
Originally Posted by
SBQ
While i'm all for home owners to improve the value of their own home, I don't believe CGT exemption on the principle residence would cause many to up-scale their house
People will be wise to put their money in places that secure their capital it the most effective way.
Quote:
Originally Posted by
SBQ
(especially when it's a common trend for seniors to 'down scale' by selling their 4 bedroom home to a small 2 bedroom 'elderly person unit' type housing). and if you want to get rid of your house by doing a 'reverse-equity' mortgage ; each to their own.
All these people are doing is releasing their own capital for their own benefit
Quote:
Originally Posted by
SBQ
NZ's tax system is not like the US where are no exemption of CGT on the principle residence. But then they're allowed all sorts of goodies like deducting their mortgage interest rate off their income, and capital losses that can be applied forward and back (again something the TWG has not talked about).
Comparing others tax system is only of academic interest - and not part of this governments agenda. They apparently want a "Fairer" system
Quote:
Originally Posted by
SBQ
Therefore, it would be more prudent for NZ to have a more comparable tax system such as in Australia (or UK colonies) where they allow a CGT exemption on the principle residence.
Other than trade, we dont need a comparable system. We need one that is efficient - like NZ's GST
Quote:
Originally Posted by
SBQ
I would not be surprised if Princess Leia is looking for a CGT model like Australia or Canada. The simplicity of NZ's tax system penalises the low and middle class and makes the equality gap wider. I'll reiterate, a simple tax on all people is not just for those that are not able.
A tax system should apply equally to all people - that is fair. The more you profit teh more tax you will pay. That is fair.
Quote:
Originally Posted by
SBQ
Those who are disabled clearly have the right to make a decent living and get into their own home without being a rental tenant for the rest of their lives.
They dont have a right at all. They have an opportunity. As does everyone else.
Quote:
Originally Posted by
SBQ
Those who are more skilled and affluent deserve to pay more taxes but do so by structuring their assets in the form of paying CGT (of course this approach is meaningless if the tax rate on CGT = the person's tax bracket).
No-one deserves to pay tax. It is simply a burden we must all bear and we should all bear it equally and fairly.
One thing is sure in life - we need a roof over our heads when we stop earning - ie retire.
How is it fair I can put my money into an eventual mortgage free residential property and pay no capital gain as I release that capital. Compared with a renter, who ought to be putting their non-housing savings into a Superannuation, Kiiwsaver or other capital investment scheme , only to be taxed when they release that capital to pay for that roof in retirement