Capital Gains Tax? Keep related posts in this thread, please.

[Perry]

Seditious subversion in banking circles?
No! Surely it cannot be!
Hhmmpfh!

Nothing new here.

There's another idea.

[speights boy]

Seditious subversion in banking circles?

Ha.
More like Management 101.

[artemis]

Here's an idea.
Mr Spencer put this into his speech knowing full well it wouldn't fly.
Then, if quite harsh investor bank restrictions are subsequently introduced, they can say it was their only option.

There could well be a change of government in 2017. Then it may well fly.

[speights boy]

Ask for something you know you're not going to get; then go for what you were actually after.
As I said......Management 101.

Government ignoring Reserve Bank's calls for help

Little has, however, come up with an alternative that no one has said wouldn't work.

He thinks loan-to-value ratios (LVRs) for mortgages should be progressive, so that when people buy more than one house they have to be able to produce a bigger deposit.

The amount of equity would go up with every house purchased, which would make it more difficult for the buyers to come up with deposits.

Key's advice to the Reserve Bank was that if it wants extra tools to take the heat out of the Auckland housing market, it should come up with some ideas.

"We're always ready to listen," he said. "The balls in their court, really."

http://www.3news.co.nz/business/reserve-bank-gets-the-brush-off-2015041713#axzz3XWpy1O1W

[Wayne]

First step is the current thrust - which will identify the investors.
Second step is to apply new macro prudential tools to them - wiat and see what they might be!

[Perry]

First step's already been taken, Wayne.
Blame-storming and finger-pointing.

[PTILoveYou]

Aren't you guys tired of debating or second guessing what the RBNZ will do next to curb property investors/speculators after the past 18 months?

[Bluekiwi]

Aren't you guys tired of debating or second guessing what the RBNZ will do next to curb property investors/speculators after the past 18 months?

True Gary,
But its important to read everything to get a handle on where they are going.
So you can restructure ahead of what they are doing.
I even placed a submission myself.

Consensus seems to be this is juststage 1 to classify property investor mortgages separate to normal residentialmortgages.
Where people like me have alreadymoved into Business Banking it may not be such an issue.


The Reserve Bank then, once it hadproperty investors fairly classified and in its sights.
Will bring in stage 2 lendingrestrictions.


For my part to reduce the risk ofhigher interest costs, I am fixing long – well 5 years.
And maximising lines of credit toaccess every cent of equity I can now, before restrictions come in.
That restructure will be complete by1/7.

My plans require access to funds, so I want to ensure they don't pull the rug out from under me.

But these new rules for the tradingbanks, are just for the main trading banks of NZ.
Resimac is not captured by this ?
They will have a field day.

I am therefore moving some lending to them, taking some security from the main banks.

[Perry]

Aren't you guys tired of debating or second guessing what the RBNZ will do next to curb property investors/speculators after the past 18 months?

I agree and couldn't really care less. The process epitomises symptom-
chasing, so all it does for me is confirm that the RBNZ is just another
cash cow, stealth tax* collector for its political paymasters and all the
hoo-hah about 'independence' is just a smoke screen for the gullible.


* So-called dividends paid by the RBNZ into the government coffers . . .

Last year: $20 million (Blenglish will not be pleased!)
2013: $175 million
2012: $160 million
2011: $210 million
2010: $290 million

(Source: RBNZ Annual Reports)

[speights boy]

John Crawford suggests a less politically explosive and much simpler way to reduce the tax incentives for rental property investors

* John Crawford is a former Deputy Secretary of the Treasury.

Summary

A deemed rental income would be relatively easy to legislate for (it is not a new tax, just a method of calculating income), very simple to administer for both investors and the IRD, and could be implemented quickly.

As an alternative to a CGT, it is specifically targeted at residential property investment, and would have a more immediate impact on investor behavior.

http://www.interest.co.nz/property/75127/john-crawford-suggests-less-politically-explosive-and-much-simpler-way-reduce-tax

[Perry]

As soon as I saw this . . .

One focus of any new measure would be to reduce the incentives of investing in rental
properties, which currently provide the majority of their returns through untaxed capital
gain rather than via the rental income stream.

. . . I stopped reading.

As has been tritely observed before: nothing new here - move on.

[Bob Kane]

John Crawford suggests a less politically explosive and much simpler way to reduce the tax incentives for rental property investors

* John Crawford is a former Deputy Secretary of the Treasury.

http://www.interest.co.nz/property/7...way-reduce-tax

What a load of bollocks - what a nutter.
Not worth reading.

[Wayne]

Fortunately it is a short article and I didn't have to waste too much of my life.
Fascinating idea really but WTF!
I can't see it gaining any traction - all will see it for the nutty idea it is.

[Bluekiwi]

In my submission to the Reserve Bank regarding Macro Prudential tools to be unveiled 1/7/2015.
I pointed out that the discussion paper did not take into account the affect on small business operators which employ the majority of workers in NZ.

I explained that any restrictions on property investor lending that was too onerous would affect econominc growth.
As a lot of business leverage funds from owning their own home and rental property to operate such business's.
I also pointed out that the leverage of funds from property investing was one of the key methods that small developers, used to finance the building of new housing.

(Yep, I sent a short email saying tread carefully bro !!!)

[elguapo]

Fortunately it is a short article and I didn't have to waste too much of my life.
Fascinating idea really but WTF!
I can't see it gaining any traction - all will see it for the nutty idea it is.

Deemed rate of return taxation already exists in NZ tax code, that's how the FIF system works for international shares. Just because it's nutty doesn't mean it can't happen.