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  1. #2791
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    Quote Originally Posted by blackcap View Post
    Not sure if capital gains tax would be a thing or necessary with 0% inflation.
    I guess the only capital gains would be from providing actual value, rather than just borrowing, holding assets and waiting for the central bank to boost your rents and decrease your debt.

  2. #2792
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    Quote Originally Posted by Aaron View Post
    I guess the only capital gains would be from providing actual value, rather than just borrowing, holding assets and waiting for the central bank to boost your rents and decrease your debt.
    That would be the case, and then I would argue that a tax is not necessary.

    Then again, I am biased against tax, I am of the opinion that tax is theft. (State sanctioned theft, but theft none theless)

  3. #2793
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    Quote Originally Posted by blackcap View Post
    That would be the case, and then I would argue that a tax is not necessary.

    Then again, I am biased against tax, I am of the opinion that tax is theft. (State sanctioned theft, but theft none theless)
    Your abhorrence to all taxes aside we tax productive labour, why not productive capital?

    Also a capital gains tax would get the rentiers contributing a bit more to society, even if they are not adding value.

    No one likes paying tax but it would appear what we might consider the more successful countries tend to have higher taxation and stronger public institutions.

  4. #2794
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    Quote Originally Posted by Aaron View Post
    RBNZ guarantees at least a 1-3% rise each year although as unhuman points out the RBNZ has spectacularly out performed their inflation targets with asset prices. Although assets do not form a big part of the CPI so maybe they do not measure it.

    Interest deductibility will return soon thanks to Chris and the team. I agree with it though, it is inflation targeting that seems to be what distorts things.

    This guy has an interesting take on things although he is talking about Australia.

    "The rental property sector in Australia is not a net tax payer. The deductions actually exceed the income.

    and that is with a capital gains tax.

    https://www.abc.net.au/news/2024-02-...ears/103465044

    Hopefully Chris can get the rental market back in order so landlords can get back to contributing very little to the nation. Guaranteed 2% tax free capital gains probably more like 7% and with Adrian at the helm mortgages are 6-7% easier to pay off each year, although the current return of interest rates has many moaning.
    the assets aren't going up in value ... the NZD is dropping in value ..it's heading southwards and will continue to unless interest rates go high enough to make that NZD value higher say we had 10-15% interest rates etc

    Just think of the value lost in the NZD.. if I had a million NZD 25 years ago in Queenstown I'd be so rich could buy a nice property in a great location and a couple of Queenstown rental homes earning 7-8% return(I recall it well as I had a contract on a property for 3bd freehold house for $173k in sunshine bay in year 2000)..and still have enough funds to invest in the market and pick up great stock for peanuts ...

    Fast forward to the present mass dilution of the value of the NZD YOY...

    that same NZD $1mill today in Qtn wouldn't get me home anywhere in Qtn ... but a 1-2 bed shoebox unit that would return 3-4%
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." Carlos Slim Helu

  5. #2795
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    Yep inflation is the devaluing of dollars.

    Looking back this thread was started by crypto crude back in 2007 when he was 22, now he is 38. With a name like crypto crude I would hope he has made millions in oil or crypto so housing is not a problem. I guess that was just before the GFC so hopefully he bought a house a few years later in the aftermath. That would have been his best chance as central bank largess has probably pushed house prices even higher cf wages.

    Good to see rents rising though. Labour and National governments (OUR GOVTs) have been pouring immigrants into NZ for many years now to push down wages and push up rents. I do not think that will assist young NZers onto the property ladder but then who does our govt represent?

    https://www.newshub.co.nz/home/money...s-to-soar.html

    Rising rents and cheaper and more varied places to dine out as well as the security of more care workers for the elderly, sounds like utopia for a retired/retiring boomer with no debt and a couple of rentals.

    I am a bit hard on the boomers of the last three prime ministers only John Key is a boomer. Jacinda and Chris are GenX, Jacinda was nearly a millenial.
    Last edited by Aaron; Today at 08:04 AM.

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