Capital Gains vs Interest deductibility

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Forums › Politics › Capital Gains vs Interest deductibility

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tdgeek

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#3085700 6-Jun-2023 18:45

mudguard:

Well I can't help with that. But shifting the rates income from property to individuals is a pretty big shift.

Not really. A 1 person home versus a 6 person home. Roads, rubbish, water. Per person makes a lot of sense

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tdgeek

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#3085701 6-Jun-2023 18:49

GV27:

And if I were, would that change anything? Would you accept that your views are perhaps misinformed, or do not line up with reality, even though you've gotten intensely personal with anyone who offers a counter to your ZB-level ranting?

Not picking on you personally but this is a Ford vs Holden National vs Labour Rugby vs Soccer argument. People need to put biases or personal circumstances aside and look at reality. I create as much rubbish if I lived alone as if I lived in an 8 person house. Pay my share. Yes, there are some economies of scale there, but...

tdgeek

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#3085704 6-Jun-2023 18:56

We could make it totally unsuitable to be a property investor, then problem solved. All the people that will not, or cannot buy a house become homeless?

mudguard

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#3085707 6-Jun-2023 19:06

tdgeek:

We could make it totally unsuitable to be a property investor, then problem solved. All the people that will not, or cannot buy a house become homeless?

Well I guess they either, burn that house down, leave it unoccupied, or sell it? In reality the house won't go anywhere, and I can't imagine too many can afford to leave it unoccupied if there is no longer the increase in prices. It's just capital tied up, rates to be paid (or maybe not if there are zero people living in it as per your post above) etc.

I'm not sure what the answer is, I don't think we'll get back to my parent's generation where it was doable (just) on one income. I don't know what multiplier we are at now for income to prices. The reality is it won't matter either way, our population is ageing too quickly.

tdgeek

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#3085709 6-Jun-2023 19:21

mudguard:

Well I guess they either, burn that house down, leave it unoccupied, or sell it? In reality the house won't go anywhere, and I can't imagine too many can afford to leave it unoccupied if there is no longer the increase in prices. It's just capital tied up, rates to be paid (or maybe not if there are zero people living in it as per your post above) etc.

I'm not sure what the answer is, I don't think we'll get back to my parent's generation where it was doable (just) on one income. I don't know what multiplier we are at now for income to prices. The reality is it won't matter either way, our population is ageing too quickly.

The landlord, aka the scourge on society has the same issues as the home buyer. Higher prices, higher interest servicing costs, higher rates, higher insurance.The fact that one is a business and the other is just a resident is immaterial. They both incur more costs. One can raise rents, the other doesnt bay rent they pay another higher cost, ownership. They can both draw down funds if they build equity over time. Maybe to buy another rental or a new car. Same deal. The one that is a business pays tax

Eitsop

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#3085714 6-Jun-2023 19:29

Wouldn't life be so much better, if we were not working our whole existence to paying for dirt to live on? and that we were using our hard earned money on better avenues?

We need to have a vision/ideal of what we want our country to be like.. my vision

"Every person has the ability to be able to buy a home & raise a family while working on average wage, working no more than 40 hours per week"

As such we need to moderate the housing market!

ezbee

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#3085718 6-Jun-2023 19:45

tdgeek, No need to look at binary extremes when there is an infinite number of possibilities in between.
( Refer to Paradoxes of Zeno)

Its a case of finding a balance.
Decades back Don Brash was always bashing on about the damage too much capital tied up in property did to the economy.
High rentals and property costs also feed into wage demand pressure, or immigration to Australia etc.

Investors who exit will see houses on the market that will need to be sold, lowering prices.
Not everyone is working with cash, and many were chasing benefits of gearing.
So they need to liquidate some of their portfolio to balance things out.

As people take up houses coming onto the market they exit their rentals, making more of them available.
Rental companies/investors may even need to lower rentals to keep their properties full.

This brings up other part of problem.
Empty property trend that China took to excess but may be a trend here.

Gareth Morgan in one interview, to illustrate the craziness of the property market, said he did not bother to rent his properties.
Low risk parking of money with better gains than bank interest.
Its been noted that many places like London empty property has become a scourge.

I do know people on Power and Water Utility side and dealing with property owners who keep property empty and resent ongoing charges is a thing.
Then there are the issues dealing with representatives of overseas property owners who don't understand NZ works differently.
Disconnection and reconnection charges etc.

tdgeek

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#3085723 6-Jun-2023 20:01

ezbee:

tdgeek, No need to look at binary extremes when there is an infinite number of possibilities in between.
( Refer to Paradoxes of Zeno)

Its a case of finding a balance.
Decades back Don Brash was always bashing on about the damage too much capital tied up in property did to the economy.
High rentals and property costs also feed into wage demand pressure, or immigration to Australia etc.

Investors who exit will see houses on the market that will need to be sold, lowering prices.
Not everyone is working with cash, and many were chasing benefits of gearing.
So they need to liquidate some of their portfolio to balance things out.

As people take up houses coming onto the market they exit their rentals, making more of them available.
Rental companies/investors may even need to lower rentals to keep their properties full.

This brings up other part of problem.
Empty property trend that China took to excess but may be a trend here.

Gareth Morgan in one interview, to illustrate the craziness of the property market, said he did not bother to rent his properties.
Low risk parking of money with better gains than bank interest.
Its been noted that many places like London empty property has become a scourge.

I do know people on Power and Water Utility side and dealing with property owners who keep property empty and resent ongoing charges is a thing.
Then there are the issues dealing with representatives of overseas property owners who don't understand NZ works differently.
Disconnection and reconnection charges etc.

Well thats easy, find a way to push landlords out. Many many people cannot afford to buy, what about them? If there were no need for renters there would be no need for landlords, but there is. Say they all had to offload houses, many empty houses, but prices drop. new builds would fall to near zero as the gap between a nice house and a nice build would be huge. It all come back to supply, we doit add to supply. Now, factor in build costs. Typically a new build of same spec as an existing home is more expensive and rightly so, its new. Who would bother building when homes plummet? There you go, a supply problem expanding.

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