RBNZ engineering our next recession

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Forums › Finance and wealth management › RBNZ engineering our next recession

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tweake

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#3005599 4-Dec-2022 15:06

cshwone:

And how do you account for renovations. I have invested in my home with new double glazing, 2 x woodburners, added 3 decks, added a heatpump, new kitchen, 2 new bathrooms, redecorated inside and out, added an office, added more insulation, landscaped, increased security etc etc.

Yes it is my home but I don't expect, at my age, to see out the 30 years you propose.

And in many countries the family home is CGT exempt. I personally have no issue on CGT on second etc properties.

sorry i missed the easiest way around that issue. build new.

Handle9

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#3005649 4-Dec-2022 15:37

tweake:
cshwone:

And how do you account for renovations. I have invested in my home with new double glazing, 2 x woodburners, added 3 decks, added a heatpump, new kitchen, 2 new bathrooms, redecorated inside and out, added an office, added more insulation, landscaped, increased security etc etc.

Yes it is my home but I don't expect, at my age, to see out the 30 years you propose.

And in many countries the family home is CGT exempt. I personally have no issue on CGT on second etc properties.

you simply don't. reno's to sell are part of the problem. do the house up to suit you, not for the ROI.

if you have to live in a house for a long time and ROI is no longer a factor, then reno it to suit you. instead of that fancy kitchen and bland "please everyone" paint job, make the house more comfortable, heathy and something that suits your tastes.

Will the ministry of worthy renovations rule on whether replacing a rotted out kitchen is eligible for excemption or do I need to go to court of cardigans?

tweake

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#3005652 4-Dec-2022 15:52

Handle9:

Will the ministry of worthy renovations rule on whether replacing a rotted out kitchen is eligible for excemption or do I need to go to court of cardigans?

i get the point of maintenance increases value of house. buying a cheap run down house and doing it up.

the other factor here is time. if its done up and sold off quickly then no, thats exactly what we need to stop, people flipping houses for profit. but if you live in it for a long time then it doesn't matter. so a fhb can buy a cheap home, live in it, do it up. sell it and pay low amount of tax on any gains (or none of long enough).

the problem with flipping houses or buying to reno, is it removes the cheap places for fhb to buy. you take a fhb house and turn it into a 2nd/3rd/etc home buyers house, which means fhb now has to buy a higher priced 2nd/3rd level house.

GV27

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#3005810 5-Dec-2022 08:34

tweake:

the problem with flipping houses or buying to reno, is it removes the cheap places for fhb to buy. you take a fhb house and turn it into a 2nd/3rd/etc home buyers house, which means fhb now has to buy a higher priced 2nd/3rd level house.

Yea houses aren't supplied to market in 'do up' condition. The relentless flipping of family homes in the 1990s removed a lot of the affordable entry points into nicer central suburbs, and land prices exploding in the 2000s made it permanent. Now the house is secondary to the land that it sits on, which is nuts.

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