What change will we see to property taxation?

[beacon]

Its probably about time for residential rental owners to look at rentals as a revenue opportunity .

As a revenue opportunity, majority of residential rentals suck. There is inadequate risk premium built in. Govt flirtation with property may cause, among other things:
1. Property values to dip short-term, then rise wiping out the Kiwi dream
2. Private investment to quit residential rentals forcing Govt to supply social housing
3. Rents to rise exponentially in the short-term leading to inflation = headache for Govt and RBNZ
4. Damaging the one investment Mrs and Mr Kiwi trust and understand, without contributing to the increase in either trust or knowledge of competitive risk assets

Revenue paucity is taxing the Govt, and as usual residential rentals have been picked as everybody's favorite fall guy. Raising GST is fairer and the lesser evil. Given our current account and imminent budgetary need, change is certain - even desirable. But where and how? Maybe its time long-term (system ripper) beneficiaries and (low risk) prisoners were gainfully employed in social projects. Let each man and woman carry their fair share of load. Or is it not yet?

[minimoke]

Govt flirtation with property may cause, among other things:
1. Property values to dip short-term, then rise wiping out the Kiwi dream
2. Private investment to quit residential rentals forcing Govt to supply social housing
3. Rents to rise exponentially in the short-term leading to inflation = headache for Govt and RBNZ
4. Damaging the one investment Mrs and Mr Kiwi trust and understand, without contributing to the increase in either trust or knowledge of competitive risk assets

Which is why I don't think we'll see govt fiddling too much.
1 = lost votes
2 = This isn't what National is about. They are supposedly about less government - not more
3 = this is an area that does need addressing - rents do need to rise to make the investments worth while. (but that then mean slook at teh Accomodation Assistance in the various govt benifits - means more tteh govt wil lhave to pay which means more taxes collected.
4 = Too many investors stung by '87 and '08 to want to go anywhere other than property.