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  1. #91
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    NZIER has said hold the interest rates. I agree.

    Small business drives a lot of growth in this country and while recovery is happening it is painfully slow. Look at all the small offices and factories still for lease. Until vacancy rates fall this shows that small business does not have the confidence to take on a new lease.
    Secondly, mortgageee sales are still high. I believe this is the tip of the debt iceberg. Owners of small businesses often borrow against their private homes to stay afloat. There are many out there wrestling with paying mortgages to keep their businesses afloat. If interest rates go up, quite a few will hand their house keys to the bank and walk away. I say leave interest rate increases till September.

  2. #92
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    Quote Originally Posted by fungus pudding View Post
    Last minute bets called ! Tomorrow's the day when we might all be fighting for roof space on the tallest building in town. Or maybe not. I somehow think whatever they do won't be too harsh; the sun will almost certainly rise on Friday morning. Perhaps disallow depreciation on residential, and set a flat rate of depreciation on commercial and industrial. But a lower and flatter income tax rate will be most welcome.

    Well I wasn't too far out. Income tax is lower and flatter. Res depreciation has been clobbered, which acheives next to nothing, because most 'investors' are really traders who sell after a few years and pay at that time on deprciation recovered. That was simply a move to appease the rabble who constantly brey about landlords not paying tax. commercial and industrail still are allowed claims on fixtures and fittings. Overall it's not bad, but there will be some landlords who have to sell down - those who are highly geared and not generating a decent income.
    Anyone notice any change in demand or listings for res. investment in their area?

  3. #93
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    fungus pudding
    how do you account for the improvement in LPT recently?

  4. #94
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    Quote Originally Posted by voltage View Post
    fungus pudding
    how do you account for the improvement in LPT recently?
    I think they are still underpriced so a better question might be, why did they drop so much? It doesn't make sense to me except with the threat of disallowing depreciation and some having to reduce gearing - I suppose just general negative sentiment, and it might be turning around now that it's obvious commercial property isn't going to collapse. It's a bit of a puzzle, and I keep comparing them to buying a property, e.g. a buyer purchasing say 500k worth and keeping them as a building buyer does, but sharemarket players are different animals. Commercai property owners think ten years is a short term investment. Many sharebuyers think 6 months is a lifetime. I bought up a few because they compared very favourably with buying a building, or at least the income did, particularly as they are all PIEs. So the future? Who knows - but I do see them as a bargain.

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