sharetrader
Page 5 of 28 FirstFirst 12345678915 ... LastLast
Results 41 to 50 of 280
  1. #41
    Guru Crypto Crude's Avatar
    Join Date
    Dec 2006
    Location
    New Zealand.
    Posts
    3,760

    Default

    Housing market in nz definately cooling off and a dip in prices for sure...
    cc

  2. #42
    Legend
    Join Date
    Dec 2009
    Location
    Everywhere
    Posts
    6,881

    Default

    An interesting article on Stuff:

    'We'll be buying up big': Sir Bob Jones sits on a stash of cash, waiting

    https://www.stuff.co.nz/business/pro...f-cash-waiting

  3. #43
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    2,480

    Default

    I was surprised there was no thread on the changes to residential property investment but realised this would be much better on a political thread to debate what Grant or Jacinda did or didn't say about raising taxes.

    As for the proposals I think just targeting property investors and denying them the ability to claim interest like every other investment is unfair.

    Although someone mentioned the interest deduction might be available for new builds so assuming no government will address the heart of the problem which is central banks and monetary policy then leveraged investors might need to sell up and actually build some rental housing to get back on track from a tax perspective. Which sounds like a good idea as everyone seems to agree supply of new housing is part of the problem.

    Probably won't change housing affordability while capital is virtually free and available thanks to monetary policy and central planners controlling interest rates. More tinkering but still no sign that the heart of the issue will be addressed any time soon. What form would that take? Restricting money printing to GDP or population growth, letting willing buyers and sellers determine the price of capital? sounds radical but it might help alleviate inflated asset prices, particularly housing in NZ.

    Am I correct in thinking a lot of the detail is still being written up such as deductibility for new builds, definition of new builds, definition of residential property (i.e. is a GST registered airbnb residential or more like a hotel?)

    As long as a landlord can claim interest after building a brand new house I can live with the changes even if they are unfairly targeting landlords when all they are doing is capitalising on a central bank gaurantee of rising prices through targeted inflation. It is only because how unfair targeted inflation and the calculation of the CPI is to future generations and how obvious it is becoming do we get this annoying and unfair tinkering IMHO.

    PS to keep to the thread, I don't think it will change property prices much, but that said even overseas commentators have discussed NZ house prices to income. If it is a bubble then any prick might burst it but I don't think this will be enough. Time will tell.
    Last edited by Aaron; 25-03-2021 at 10:29 AM.

  4. #44
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    2,480

    Default

    A lot of talk about the tax changes being added to rents, much like the need to insulate etc etc ultimately all being added to the rent payable. I wonder if any landlord has shared some of their annual capital gains by decreasing rents??? or have I missed something with that train of thought.

  5. #45
    Antiquated & irrational t.rexjr's Avatar
    Join Date
    Feb 2017
    Location
    Under the sycamore tree
    Posts
    591

    Default

    Quote Originally Posted by Aaron View Post
    A lot of talk about the tax changes being added to rents, much like the need to insulate etc etc ultimately all being added to the rent payable. I wonder if any landlord has shared some of their annual capital gains by decreasing rents??? or have I missed something with that train of thought.
    I endeavor not to increase rent during a tenancy. I also set rent at what I deem to be lower end of fair market from the beginning of the tenancy. As a result I get great tenants that are more often than not long term. They are the enablers, without them I could not own investment properties. The Capital increase over the long term far outstrips any gains made from rental income.

  6. #46
    Advanced Member
    Join Date
    Dec 2001
    Location
    Wellington, , New Zealand.
    Posts
    1,701

    Default

    Quote Originally Posted by Aaron View Post
    A lot of talk about the tax changes being added to rents, much like the need to insulate etc etc ultimately all being added to the rent payable. I wonder if any landlord has shared some of their annual capital gains by decreasing rents??? or have I missed something with that train of thought.
    What you may have missed is that paper capital gains don't pay the bills. And if they are crystallised, buying in the same market isn't going to pay the bills either.

  7. #47
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    2,480

    Default

    Quote Originally Posted by artemis View Post
    What you may have missed is that paper capital gains don't pay the bills. And if they are crystallised, buying in the same market isn't going to pay the bills either.
    Assuming you never sell or if you do you only roll over your investment.
    Much like commercial property I suppose the rise in capital value is used to justify an increase in rent without any additional benefit being provided. Don't get me wrong I am not anti landlord. I had tenants who every christmas stopped paying their rent probably due to overspending and holidays. I assume they thought we were wealthy landlords rather than a young couple trying to get ahead and pay the mortgage. Very stressful as they would catch up only to get behind again.

    But due to what seems to be ever expanding credit availability and constantly lower interest rates over the last 30 years asset owners have been big winners, yet to hear the bleating when legislation to provide insulated housing came in (I thought heat pumps were a step too far) you would think their throats were being cut yet no mention is ever made of the wealth generated through central bank policy for the past 30 years. It seems a little one way sometimes. Pass on the costs keep the capital gains. Mind you at the yields rental properties are currently selling at I can see how cashflow could be tight.

  8. #48
    Senior Member
    Join Date
    Mar 2020
    Location
    In the trough
    Posts
    766

    Default

    Quote Originally Posted by t.rexjr View Post
    I endeavor not to increase rent during a tenancy. I also set rent at what I deem to be lower end of fair market from the beginning of the tenancy. As a result I get great tenants that are more often than not long term. They are the enablers, without them I could not own investment properties. The Capital increase over the long term far outstrips any gains made from rental income.
    Quote Originally Posted by artemis View Post
    What you may have missed is that paper capital gains don't pay the bills. And if they are crystallised, buying in the same market isn't going to pay the bills either.
    t.rexjr maybe one of those fortunate enough to actually own his IP's, rather than being highly leveraged... Those in that boat stand to gain most from this I think, and presumably future FHB's (will be hard for those that have literally just bought, if things track down). Leveraged investors and tenants stand to lose. Oh, the government is a big winner, by means of a huge tax grab. The most interesting thing for me will be to see if this pops the bubble and breaks the ponzi scheme they've put so much effort into with the post covid recovery, and what that will mean for the broader economy. I don't think OCR is going to be headed north for quite some time!

  9. #49
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    2,480

    Default

    Quote Originally Posted by Cyclical View Post
    t.rexjr maybe one of those fortunate enough to actually own his IP's, rather than being highly leveraged... Those in that boat stand to gain most from this I think, and presumably future FHB's (will be hard for those that have literally just bought, if things track down). Leveraged investors and tenants stand to lose. Oh, the government is a big winner, by means of a huge tax grab. The most interesting thing for me will be to see if this pops the bubble and breaks the ponzi scheme they've put so much effort into with the post covid recovery, and what that will mean for the broader economy. I don't think OCR is going to be headed north for quite some time!
    Interesting to read the opinions on the drop in the $NZdollar after the announcement. One view was crazy socialist govt is scaring away international investors with crazy policy. Another was speculators realized if it slows house price rises the reserve bank can sit on its hands for a lot longer. I'm going with speculators as they make up a large % of foreign currency transactions with a much smaller amount of foreign currency transactions due to actual trade and investment. OCR not going to move anytime soon. Orrs got no cajones anyway even if he gave a s*it about wealth inequality and moral hazard.
    Last edited by Aaron; 25-03-2021 at 04:28 PM. Reason: deleted unnecessary crap, well more crappy than usual anyway

  10. #50
    Antiquated & irrational t.rexjr's Avatar
    Join Date
    Feb 2017
    Location
    Under the sycamore tree
    Posts
    591

    Default

    Quote Originally Posted by Cyclical View Post
    t.rexjr maybe one of those fortunate enough to actually own his IP's, rather than being highly leveraged... Those in that boat stand to gain most from this I think
    Actually it'll mean around 6k extra tax due (about $115 pw that I'm now out of pocket)

    interestingly I'm currently renting the house I live in. For the amount I pay I could 100% leverage the loan to buy the house, pay all related expenses, and be better off...

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •