nz shares or property

[Bjauck]

Why end a statement with a question mark?

Because it is a question! The word order in the sentence indicates an element of surprise at what seems like a volte-face in your position...

[fungus pudding]

Because it is a question! The word order in the sentence indicates an element of surprise at what seems like a volte-face in your position...

If it's a question, then I don't agree.

[kiora]

Or a small business?
https://www.stuff.co.nz/business/123...ns-than-houses

[dobby41]

Or a small business?
https://www.stuff.co.nz/business/123...ns-than-houses

Would be good - and productive too.
Unfortunately many people buying rental property wouldn't have the nouse to run a small business. Residential property is much easier.

[Bjauck]

Would be good - and productive too.
...

I thought one had to start the business for it to be a productive investment. Buying a second hand business, or buying a second-hand shareholding in a company that runs a business, was not productive. However, in addition, is it also if you buy an established business and work in the business too., then it is also productive. If you buy an existing business but get a manager to run it, then it is not a productive investment. Do I correctly understand the point (which I disagree with) you were making previously?

[dobby41]

I thought one had to start the business for it to be a productive investment. Buying a second hand business, or buying a second-hand shareholding in a company that runs a business, was not productive. However, in addition, is it also if you buy an established business and work in the business too., then it is also productive. If you buy an existing business but get a manager to run it, then it is not a productive investment. Do I correctly understand the point (which I disagree with) you were making previously?

Starting one is the best way but I expect that if they brought an existing one they would probably add to it.
You are pushing the suggestion that I made (to start the debate) but getting an existing manager to manage it is similar, but not the same, as buying an existing share. In a small business, even with a manager running it, you probably add to the investment. With an existing share you only add to it if the company wants to increase capital.

I don't see investing in residential property as being non-productive - you end up paying a lot of money on repairs and maintenance (both of which help the productive economy). Yet people keep trying to say that property investment is non-productive?

[Bjauck]

...

I don't see investing in residential property as being non-productive - you end up paying a lot of money on repairs and maintenance (both of which help the productive economy). Yet people keep trying to say that property investment is non-productive?

I guess with residential property if you pay $1,000,000 for a house (land worth $700,000; building and other improvements worth $300,000) then you are getting a $300,000 asset which produces shelter whether you pay $700,000 for the land or $100,000 for the land.

Certainly when it comes to owner-occupiers, It makes no sense not to tax the net product of a residential property producing a net benefit (shelter) for an owner-occupier while fully taxing the net product of a business that produce a net benefit (income, ability to eat and clothe) to the owner-operator.

The initial investment or purchase of shares keeps the business alive when the start-up investors/shareholders wish to to retreat. What you may be referring to is subsequent injections of capital - or retention from annual net income - to maintain assets. In relation to a shareholding that would be retaining earnings within the business (which NZ companies are very poor at doing for various reasons.) NZ companies would also raise money from shareholders by way of a placement or rights issue.

[fungus pudding]

Would be good - and productive too.
Unfortunately many people buying rental property wouldn't have the nouse to run a small business. Residential property is much easier.

Annd many people who buy a small business should have had the nouse not to.

[Sgt Pepper]

Annd many people who buy a small business should have had the nouse not to.

This may have been covered before, but can someone more experienced or informed than myself answer this question.
If borrowing to buy shares, via mortgage security, is the interest component tax deductible?

[kiora]

It is if they were brought for dividend income