Quote Originally Posted by Snow Leopard View Post
Sorry ma'am, won't do it again.

Apart from moving to Canada where things are so much easier then at the end of the day you are going to have to invest time into learning and analysing companies from the perspective of your investment or trading style, putting some real money* where you conclusions say good value is and then see how it works out for you.


Some you will win and some you will lose, both ways you will learn by actually doing it and having money in the market.

You see how it goes and adapt with experience.


*If I remember correctly you can buy small $$ of shares with low brokerage
I'm speaking for both sides of the fence which is relative to the topic in discussion. The novice NZ investor is simply at a disadvantage to investing shares when compared to those living abroad. Furthermore the investing approaches abroad differs to NZ and a lot of that is due to taxation. Another is NZ preference to dividend income on share investment vs overseas prefer capital gains. If you can't get past this distinction, then you'll find all the effort put into investing shares (from a NZ perspective) would of gone to a waste of time and I mean you can study up all the fundamentals on a NZ listed company or try to look smart by using technical analysis on NZ shares and at the end of the day, you're worse off than buying a 2nd house. Sure there are winners and losers in any game... but you simply can't have a 'fair' game if the playing / (investing environment) is not on a fair level playing field. Earlier in the year I applauded for the WTG in NZ to tell the NZ gov't that capital gains tax should be brought in to NZ. It was the single only chance to level the playing field. But oh no, you have politicians (especially in the NZ 1st and National Party camp) that have huge investments in real estate and frankly, they're not going to welcome a CGT on their investments.

Quote Originally Posted by Tronald Dump
SBQ, to be clear, there is NO capital gains tax on PIE funds, whereas there definitely is a tax on investment property gains if you sell within 5 years. You also (of course) pay income tax on the rental income from property, just like you pay income tax on dividends from shares or funds.
You realise why the PIE funds came about? It was to address the tax inequality that managed funds faced when they were trying to roll out Kiwi Saver. We don't have to mention the absence of CGT because in the NZ share investment field, portfolios are subjected to something worse which is the FIF regime I keep describing. Look at the significance of share investing in NZ when you see companies like Xero leaving the NZX saying they want a wider market exposure ; while during this process, NZ investors holding Xero shares would be wacked with FIF. Is this the example we should be looking at for existing NZX companies - 'pick a winner where the long term result is they go off shore' ?

I do not believe there is much data showing those that have sold houses in less than the 5 year brightline test. You know investment criteria for retirement planning is not 5 years and certainly no one has lost a lot of $ in real estate if they held longer than 5 or 10 years.

The PIE funds do give investors in the top income tax bracket a 5% break ; pity it leaves nothing of a benefit to the small guy.

@ justakiwi : Since you're dealing with small sums, I welcome you to keep looking at high quality stocks with long future potential, typically those on the S&P500. If you can return a decent sum on your investment, be sure to keep it under $50,000 NZD which is the threshold before FIF kicks in. Hopefully you cash out the gains and put them towards something better like into your 1st home mortgage. FYI, in 2019 my portfolio did over 30% which is inline with the returns that the S&P500 and DOW index did last year:

https://dqydj.com/2019-sp-500-return/

What is the the NZ gov't doing to boost the NZ share market? The only thing I see being boosted in NZ is prices in the NZ real estate.