Quote Originally Posted by SBQ View Post
Investing in rental properties has ALWAYS been about the capital gain. You are incorrect - every other OECD nation deals with capital gains in a way by taxing it. NZ DOES NOT and if you read closely to what i've been saying, buying houses in NZ is still the best game in town because of the amount of capital gain.

Read my links here in another thread which is discussed in parallel to this thread:

https://www.sharetrader.co.nz/showth...l=1#post892227

The important part is what I posted in quotes. Why? I say it's fueled by the behaviour of the people knowing that NZ does not tax long term capital gains on residential houses. It has nothing, absolutely nothing.. about the way rental properties can generate an income.

But don't take my word for it, here's what Bernard Hickey said in ynot's post:



The latter about 'easier credit' I blame it on the behaviour aspect of investors. Owning 5 houses isn't enough and I know a family friend that is aiming to buy his 10th house before he retires.

@ Zaphod: lack of productivity due to tax laws that disadvantage the working class and give the benefit to all those that own houses. What NZ has is the complete opposite of what Canada has where the middle working class get TAX FREE or deferred taxes on their investment savings plans. NZ's Kiwi Saver funds pay taxes, Canada's RRSP defers the taxes or there are tax free options like TFSA, RESP, RDSP, etc. While the wealthy, they lose those tax benefits when their incomes go past a higher point. They call it 'claw backs' on their CCP pension funds (ie NZ super).

Who is going to disagree with Bernard Hickey?

Investing in houses is the best game in town almost anywhere. CGT hasn't changed that in any country. Even with tax free share investments and CGT on property, you'll never beat the property just because the leverage gives you better returns. Also tax free retirement fund gives you money when retired, so government doesn't have to give you back part of what you paid during working decades, but does nothing for your quality of life during your working years.

There's no better way for low to middle class salary earner to get wealthy than property. Not everyone is capable to start business.

I am all for CGT, it will change nothing... well something... share gains will be taxed.