Well thats what happens when all the banks besides TSB and Kiwi are foreign owned. I wonder if Russel has also considered that the government owned Kiwi Bank might also be lending on property at a frenetic rate?
Russel also wants the government to introduce:
'...direct measures to control the housing asset boom such as: limiting sale of land to permanent residents and citizens; introducing a capital gains tax exempting the primary family home; tightening up the rules for tax breaks on investment properties; allowing greater urban densities around electric rail corridors in Auckland; and investing in more social housing to provide some relief in the rental market.'
So, you want take away one of the only means of tax free wealth creation available to me and penalise me for investing in property. At the same time you want to spend more of my money building 'social housing' and take away my ability to earn rental income. Then by increasing housing stock you will also probably affect the capital gains on my family home.
Thanks Russel, with one sweep of your socialist red pen you could wipe out the investments of thousands of honest, hard working kiwis.
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Comment by numfarr, on 30-Mar-2007 11:11
Sorry Jama but the world doesn't owe you a means of tax-free wealth creation. For once I agree with the Greens (first two points anyway). The housing bubble is having a horribly toxic effect on the whole economy and action needs to be taken now (should have been done years ago). Unfortunately nothing will happen as Cullen is completely gutless.
The capital gains on your family home are no good to you if all other houses have gone up in price too. Kiwibank only has 2.3% of the mortgage market so they are not going to have much effect on the balance of payments.
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