Johnny Moore: I blame baby boomers for housing mess

Forums › Off topic › Johnny Moore: I blame baby boomers for housing mess

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tdgeek

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#1598387 25-Jul-2016 17:25

MikeB4:

The Government should not get involved by building homes as an SOE. Governments do not do well running businesses.

Who else though? As I see it, its more a funding means to create a large builder business. The actual building and planning will be done by professionals in the trade.

In 6 months time we could have hundreds of qualified trades people in all parts of NZ, a thousand or two. In that time we get the buyers sourcing materials ahead of time. Then we roll sleeves up and build.

tdgeek

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#1598391 25-Jul-2016 17:31

MikeAqua:

wsnz:

tdgeek:

Investors dont do it for public good, they do it for number 1. Supply and demand. Rents are too high, no tenants, rents drop, house follow, as income is relative to investments.

Ive invested in property at age 18. Its a money making exercise, nothing else. Rent less expenses, can be lucrative if your well geared, then you have capital gain. Easy as. But, housing is for living in, owning, passing it on, wealth, and by that I mean family wealth from ending up with freehold for yourself and for the kids. More money to spend on the economy than interest for banks.

So, eliminate the investment angle and you satisfy the real home ownership, i.e. the ones the live there. CGT helps that. I feel that there is a huge gain from real home ownership, self worth, security, and so on.

CGT won't stop investors purchasing properties as those that do are already subject to taxes on capital gains.

The class of investors who masquerade as family home owners requires stricter enforcement action from IRD. I have worked with a number of people over the years who were regularly purchasing family homes - either building or buying an existing property - adding value to it, then rapidly flicking it and purchasing another who to this day are still boasting about how much tax free capital gain they have made. This is one of the reasons why I'm against exempting the family home from any CGT implementation.

The problem is that it's harder for people to move to a better house that way. Everytime you sell you lose 1/3 of the capital gain you have made.

Yes you capture people who are flipping houses, but you also capture genuine people who just want a nicer house to brig their family up in, or have to move because of a change in employment or whatever.

Thats right. If people do up houses by adding value then rapidly flick them off, good luck to them. Aint much capital gain in 6 months or less, but they improved the housing stock. And they aded to the economy by purchasing material, quite possibly helping unemployment by removing themselves from the workforce if they did that full time.

mattwnz

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#1599319 26-Jul-2016 23:52

MikeB4:

I feel trying to apportion blame is fruitless. The government should ditch party politics and all parties, related business interests and community organisations should join in a cooperative attempt to resolve this issue.

That will never happen. It probably needs an 'inquiry'. This will remove i from the media and out of the news while it is done.

dejadeadnz

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#1599321 27-Jul-2016 00:00

mattwnz:

That will never happen. It probably needs an 'inquiry'. This will remove i from the media and out of the news while it is done.

Err, if you think some Commission of Inquiry will amazingly remove this issue from the media, you're talking fairyland stuff.

dickytim

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#1599334 27-Jul-2016 06:35

richms:

They are the ones that attend all the council meetings, full of grey hair opinions that have many times in the past being very dismissive when youth have turned up with differing opinions.

They are the ones that form ratepayers associations to oppose changes that would affect their property values like the sky path.

They are the ones that have all their investment money in property so will oppose anything that will affect that even if it delivers a more livable city.

They do not want to live in an apartment so think noone should have that choice.

They think that any new development should be at the edge of the city where people will have an epic commute, rather than intensification of the inner suburbs where they are worried about crap like "character houses" and similar. Look at the hassle that any development in ponsonby/herne bay has to deal with.

So yes, a lot of the problem is them, as they have the free time and resources to appear to be a louder voice than they really are, while the people that need the change to the city are too busy working.

They are the ones that saved to buy property to get ahead now....

Lets blame those that worked hard, saved hard and invested wisely.

Got to love this country...

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