SUM - Summerset Group

[bull....]

Here is some light reading on CGT implications for retirement Villages

https://taxworkinggroup.govt.nz/site...tal-income.pdf

thx minimoke

sums its up well .. this from report

) Unrealised revaluations of the value of the retirement villages. The underlying landand buildings are rarely if ever legally sold. The valuation change comes from apresent value of the expected cashflow from the occupancy advances (or interestfree loans).

they loss lots if cgt comes in

[minimoke]

thx minimoke


they loss lots if cgt comes in

I'm have a Thicko Day and dont understand

[BlackPeter]

thx minimoke

sums its up well .. this from report

) Unrealised revaluations of the value of the retirement villages. The underlying landand buildings are rarely if ever legally sold. The valuation change comes from apresent value of the expected cashflow from the occupancy advances (or interestfree loans).

they loss lots if cgt comes in

Funny - I suppose you didn't read the link you posted? Otherwise you would have come across the groups recommendation:

Group’s preference
If income tax is extended to gains on the sales of shares, the group’s preference is to do
nothing particular for this industry as it will be fully taxed on its economic income albeit in a
different way to other industries. A taxation of the gains on share sales will align New
Zealand’s tax settings of this industry with Australia’s.
On this basis nothing particular to this industry needs to be discussed in the interim report.
If, however, such a change to the taxation of capital income does not occur this may need to
be reconsidered.

Nothing will change for them. Your down ramp was the usual proverbial.

[Beagle]

Funny - I suppose you didn't read the link you posted? Otherwise you would have come across the groups recommendation:

Nothing will change for them. Your down ramp was the usual proverbial.

Yeap, agree 100%. We hear you Bull but don't agree and its getting very tiresome. Get back to work on the positive ramping of GNE.

[couta1]

Bulls normal early morning cup of tea scaremongering. PS-Expecting a very weak cup of tea CGT announcement from the Govt.

[minimoke]

The other issue would be determining a base value on Valuation Day (which is clearly going to happen to our shares assuming CGT applies to shares., Which I assume it will since it is only the wealthy who hold this asset class and they need their wealth redistributed)

[bull....]

I'm have a Thicko Day and dont understand

findings say they make lots of there profits from re valuations , if property market not going up then no profits

[Bjauck]

findings say they make lots of there profits from re valuations , if property market not going up then no profits

They found that the accounting profit, from which the unimputed dividends are paid, came from the cash gain in the sale of the occupation right after the previous occupier moved out. If the property market stagnates for an extended period this accounting profit may also be affected as the price for the occupation rights will stagnate too.

If any CGT exempts owner-occcupied principal residence, My opinion is that the long term effect of a CGT will have an upward effect on residential housing prices.

[Bjauck]

why because if they introduce a CGT on investment property it will affect the property market by reducing the sales as not as many buyers any more for property. history shows sustained drop in sales leads to lower property prices at some stage.

If anyone doesnt understand property market affects these stocks , i suggest you need to better understand them

Home ownership rates have been falling. If investors move out of the market then pent-up demand from first home buyers and other owner-occupiers wishing to trade up may take-over.

With the recent boom in prices, it is easy to forget that, as well as first home buyers, many owner occupiers have been priced out of being able to trade-up the property ladder.

[Timesurfer]

Not sure you will see a great impact. The ones most likely to think twice are traders, investors may just decide they need to buy more houses to cover for the hit to their retirement fund.