sharetrader
Page 14 of 14 FirstFirst ... 41011121314
Results 261 to 272 of 272
  1. #261
    Senior Member
    Join Date
    Jun 2005
    Location
    , , .
    Posts
    1,090

    Default

    It's becoming increasingly difficult to get any trades people to upgrade the house, let alone even repair it! Booked solid for months. One builder we approached recently has closed his order books for all of 2021, and is still receiving constant requests.

  2. #262
    Senior Member
    Join Date
    Dec 2001
    Location
    Wellington, , New Zealand.
    Posts
    1,346

    Default

    Quote Originally Posted by Zaphod View Post
    It's becoming increasingly difficult to get any trades people to upgrade the house, let alone even repair it! Booked solid for months. One builder we approached recently has closed his order books for all of 2021, and is still receiving constant requests.
    Our family tradies are super busy. Several years since we advertised, kept busy with existing clients and word of mouth.

    Prob pay to be wary of tradies available right away! Unless it's small job that can be fitted in on a rain day.

  3. #263
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    452

    Default

    Quote Originally Posted by Bjauck View Post
    Buying as expensive a main residence as you (think you) can afford - including raiding Kiwisaver (for first home buyers), getting stonking mortgages at many multiples of income, diverting income that may have gone into a financial pension fund into payments for a house.

    The reasons seem obvious with respect to the owner occupied main residence. Capital gains (often/usually leveraged too) and imputed annual net rent are tax free. These are politically untouchable. Whereas financial pension funds face annual income tax charges, and cannot be leveraged to boost capital gains. Taxable income also seems to be fair game for being taxed harder to fund covid and other expenses - so that untaxed annual benefit of home ownership will look increasingly appealing.

    So worth pouring as much as possible into your house, after all you could always downsize or reverse mortgage in retirement?

    In the meantime those, who are priced out of home ownership and have a term deposit in the bank earning way below the inflation rate, are taxed on that puny return.
    You got that RIGHT! dead on the head of the nail - that is exactly what i've been saying all along to couples and new investors. Don't go into Kiwi Saver or buy shares because those fund managers and pensions pay loads of taxes every year making IRD their best friend. Meanwhile the whole NZ marketing about how it's trendy to learn finance and KS (ie I see FMA's and KS funds on my Facebook feeds) makes no mention about investing into residential housing. Not a peep and when I do post about the absence of tax on residential properties and leverage... they delete my FB post. Yes facts hurt too much.

    Yet people in NZ still like Jacinda - waste $ for a working tax group - they make a recommendation to put in CGT - then 2 days later Jacinda does a media release at the podium, "I'm not imposing CGT for as long as i'm in politics" - like WTF!!!??? You mean all those marketing ads of Labour Party stating "NZ needs a more fair tax system" meant nothing during her election campaign? A complete waste of time? just to get your votes and then do nothing?
    Last edited by SBQ; 25-11-2020 at 09:39 PM.

  4. #264
    Advanced Member
    Join Date
    Feb 2011
    Location
    Wellington
    Posts
    2,025

    Default

    Quote Originally Posted by SBQ View Post
    You go that RIGHT! dead on the head of the nail - that is exactly what i've been saying all along to couples and new investors. Don't go into Kiwi Saver or buy shares because those fund managers and pensions pay loads of taxes every year making IRD their best friend. Meanwhile the whole NZ marketing about how it's trendy to learn finance and KS (ie I see FMA's and KS funds on my Facebook feeds) make NO work or mention about investing into residential housing. Not a peep and when I do post about the absence of tax on residential properties and leverage... they delete my FB post. Yes the truth and facts hurt too much.

    Yet people in NZ still like Jacinda - waste $ for a working tax group - they make a recommendation to put in CGT - then 2 days later Jacinda does a media release at the podium, "No issue of CGT for as long as i'm in politics" - like WTF!!!??? You mean all those marketing ads of Labour Party stating "NZ needs a more fair tax system" meant nothing? A complete waste of time? just to get your votes and then do nothing?
    SBQ, take an average punter puts in 20 a week to Kiwisaver, gets $ 520 tax credit a year .. 50 % return , who cares about a little tax.
    Same applies for average worker they put in 3 % , Boss Has to match it , plus another $ 520 from the Govt a year , who cares about a little tax , You can't get better in the bank.
    If you go into managed funds nobody matches your contribution or gives you a credit every year ...
    Let alone the Homestart grant available to many ..........
    Very poor advice for you to say don't go into Kiwisaver.

  5. #265
    Senior Member
    Join Date
    May 2006
    Location
    , , .
    Posts
    1,380

    Default

    Quote Originally Posted by SBQ View Post
    Yet people in NZ still like Jacinda - waste $ for a working tax group - they make a recommendation to put in CGT - then 2 days later Jacinda does a media release at the podium, "I'm not imposing CGT for as long as i'm in politics" - like WTF!!!??? You mean all those marketing ads of Labour Party stating "NZ needs a more fair tax system" meant nothing during her election campaign? A complete waste of time? just to get your votes and then do nothing?
    2 days later? i don't think so but it suits your story.
    She couldn't get NZ1st to buy in so knew it would fail and cut her loses - unfortunately.

  6. #266
    Senior Member
    Join Date
    Jun 2005
    Location
    , , .
    Posts
    1,090

    Default

    Quote Originally Posted by stoploss View Post
    SBQ, take an average punter puts in 20 a week to Kiwisaver, gets $ 520 tax credit a year .. 50 % return , who cares about a little tax.
    Same applies for average worker they put in 3 % , Boss Has to match it , plus another $ 520 from the Govt a year , who cares about a little tax , You can't get better in the bank.
    If you go into managed funds nobody matches your contribution or gives you a credit every year ...
    Let alone the Homestart grant available to many ..........
    Very poor advice for you to say don't go into Kiwisaver.
    Overall Kiwisaver returns should be viewed over a long-term horizon. When doing so, the 50% return quoted shrinks back to a much lower overall rate of return. I have had staff members query why they were not seeing growth of (in the example provided) 50% in their accounts each year, as this is how the investment was sold to them by advisors and forums on the internet. Some believed we the employer, must be somehow conning them out of money.

    The contributions do of course flow from the employee regardless of source whether that be holding salaries down to compensate additional costs, or in some cases the 3% contribution from the employer has been lawfully deducted from the gross employee salary.

    Another bone of contention has been that the investment is also not guaranteed, which many I have found, do not understand and are dismayed when their balances decrease.

    Cullen himself has advocated in papers released subsequent to his retirement from parliament, strongly for removing of tax breaks, any government contribution, and raised concerns about the ability to use the fund for purchasing property. I doubt Labour in its current form will attempt such reform.

    The decision to join KS is nuanced, however for the average person without investment acumen, and given the current environment, I would agree it is probably a good idea.
    Last edited by Zaphod; Yesterday at 09:36 AM.

  7. #267
    Guru
    Join Date
    Aug 2012
    Posts
    2,597

    Default

    Quote Originally Posted by dobby41 View Post
    2 days later? i don't think so but it suits your story.
    She couldn't get NZ1st to buy in so knew it would fail and cut her loses - unfortunately.
    However Ardern went further than she needed to and she has ruled out a CGT while she is at the helm of Labour. With the vested interests of an influential segment of the current electorate (or more accurately of those who would actually turn out to vote) she knew Labour would have to rule it out to keep power. She was right too. NZ First is out of the picture now yet Ardern's No CGT position remains.

  8. #268
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    452

    Default

    Quote Originally Posted by Bjauck View Post
    However Ardern went further than she needed to and she has ruled out a CGT while she is at the helm of Labour. With the vested interests of an influential segment of the current electorate (or more accurately of those who would actually turn out to vote) she knew Labour would have to rule it out to keep power. She was right too. NZ First is out of the picture now yet Ardern's No CGT position remains.
    My point being, she knew at the time forming the coalition that NZ1st would not agree with a CGT. Yet she wasted $ by throwing out a dog bone to the public by funding a Tax Working Group. She knew the tax system was not fair in NZ ; also she knew that NZ 1st wouldn't go for CGT - then why the hell did come out with a TWG? If she more thoughtful, she did not have to say at the podium "No CGT for as long as i'm in politics"... but rather could say no CGT for this term. Who knows she may even change her mind in this term.

  9. #269
    Senior Member
    Join Date
    May 2006
    Location
    , , .
    Posts
    1,380

    Default

    Quote Originally Posted by Bjauck View Post
    However Ardern went further than she needed to and she has ruled out a CGT while she is at the helm of Labour. With the vested interests of an influential segment of the current electorate (or more accurately of those who would actually turn out to vote) she knew Labour would have to rule it out to keep power. She was right too. NZ First is out of the picture now yet Ardern's No CGT position remains.
    I agree - she went further than she needed to in her statement.

  10. #270
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    452

    Default

    Quote Originally Posted by Zaphod View Post
    Overall Kiwisaver returns should be viewed over a long-term horizon. When doing so, the 50% return quoted shrinks back to a much lower overall rate of return. I have had staff members query why they were not seeing growth of (in the example provided) 50% in their accounts each year, as this is how the investment was sold to them by advisors and forums on the internet. Some believed we the employer, must be somehow conning them out of money.

    The contributions do of course flow from the employee regardless of source whether that be holding salaries down to compensate additional costs, or in some cases the 3% contribution from the employer has been lawfully deducted from the gross employee salary.

    Another bone of contention has been that the investment is also not guaranteed, which many I have found, do not understand and are dismayed when their balances decrease.

    Cullen himself has advocated in papers released subsequent to his retirement from parliament, strongly for removing of tax breaks, any government contribution, and raised concerns about the ability to use the fund for purchasing property. I doubt Labour in its current form will attempt such reform.

    The decision to join KS is nuanced, however for the average person without investment acumen, and given the current environment, I would agree it is probably a good idea.
    Not to mention the matching 3% employer contribution is eroded by administrative & mgt fees by all fund managers. The investment advisor has all the incentive to get clients into their fund knowing that that this 3% is basically out for grabs. From the employer's point of view, there are no incentives for them to offer MORE than the 3% matching amount. I'm seeing growing trend of out-sourcing, out contracting the work to be done as small businesses don't want the hassles of PAYE & KS.

    As for investment guarantee ; nothing in life is certain (except for death and taxes). Recent news tells me the NZ housing market is on fire and pressure has been issued to the NZ RB to try and cool it. When speaking to a real estate agent at an open home yesterday; he said the gov't tried all sorts of ways to cool housing prices in the past decade. Specifically they thought a 'foreign resident buyers ban' on NZ houses would do it (implying it was the rich Chinese that forces housing prices up). Now we see the same problem of housing prices going out of reach for the new home owner. Who is to blame and why is the gov't not doing anything about it?

    The average person should get the benefit. The middle class should get the benefit of investing. But in NZ, it's only the top wealthy and high income earners that benefit (via tax free capital gains on houses). The realator also told me yesterday "Well if everyone is doing it, so should you!"

  11. #271
    Guru
    Join Date
    Aug 2012
    Posts
    2,597

    Default

    Quote Originally Posted by SBQ View Post
    My point being, she knew at the time forming the coalition that NZ1st would not agree with a CGT. Yet she wasted $ by throwing out a dog bone to the public by funding a Tax Working Group. She knew the tax system was not fair in NZ ; also she knew that NZ 1st wouldn't go for CGT - then why the hell did come out with a TWG? If she more thoughtful, she did not have to say at the podium "No CGT for as long as i'm in politics"... but rather could say no CGT for this term. Who knows she may even change her mind in this term.
    The TWG was not just about a CGT. It had a broad remit. A chief concern was (still is) the over-reliance on income tax. The review examined ways to try to broaden the tax base. I think that it was correct to have a tax review. Any lack of political will or parliamentary authority to try to enact any of the recommendations is a separate issue. The government/electorate are obviously prepared to remain wedded to a reliance on income tax - for the time being at least.

  12. #272
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    452

    Default

    The TWG was a waste of time and money. Over-reliance on income tax? So what does that leave? Hrm... don't think too hard.. hrm.. 'capital gains on assets' ??? Hrm. who are the ones paying not tax on the capitals gains? -> residential houses

    We could go to 20% GST for consumption tax ? Not fixing the problem.

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
  •