Economists predict end to property tax perks
I just sent a rant to the NZ Herald in response to this article...
Economists predict end to property tax perks
Rant as follows...
I'd really like to see the NZ Herald offer some balanced reporting on the issue of taxes regarding property.
Headlines like "Economists predict end to property tax perks" are not only misleading but a gross distortion of what the economists actually said.
Property is consistantly being reported as having some kind of secret tax advantage not available to anyone else. This is a fallacy that the NZ Herald delights in repeating ad nauseum to sell papers.
Property investors receive the same tax treatment as any other business. A property trader who buys and sells properties should pay tax on their profits, whereas a long term property investor, who holds property to create an income does not pay tax on sales.
This is exactly the same as Sam Morgan, who started TradeMe and then sold it for $700m TAX FREE and the same as any business that is sold for a tax free capital gain.
With this kind of reporting, you are helping to make less accessible a form of investing that is still open to anyone and able to provide a good retirement income.
If you want to report on the real cause of the property boom, report on the banks' irresponsible lending practices. Report on the debt-fuelled consumer binge that has seen people spend more on crap they don't need than they invest for their own retirement or their children's education. Report on the finance companies that offer terms they hope the customer can't fulfil so that the 4 year interest free offer becomes 4 years of interest, plus penalties, plus compounding interest if you can't pay the lump sum at the end.
Economists predict end to property tax perks
Some tightening of tax rules surrounding property is inevitable, ANZ economists say.
In ANZ's weekly Market Focus newsletter, they said that while prices in the housing market may be up, volumes and average days to sell had stabilised in the past few months.
In ANZ's weekly Market Focus newsletter, they said that while prices in the housing market may be up, volumes and average days to sell had stabilised in the past few months.
I'd really like to see the NZ Herald offer some balanced reporting on the issue of taxes regarding property.
Headlines like "Economists predict end to property tax perks" are not only misleading but a gross distortion of what the economists actually said.
Property is consistantly being reported as having some kind of secret tax advantage not available to anyone else. This is a fallacy that the NZ Herald delights in repeating ad nauseum to sell papers.
Property investors receive the same tax treatment as any other business. A property trader who buys and sells properties should pay tax on their profits, whereas a long term property investor, who holds property to create an income does not pay tax on sales.
This is exactly the same as Sam Morgan, who started TradeMe and then sold it for $700m TAX FREE and the same as any business that is sold for a tax free capital gain.
With this kind of reporting, you are helping to make less accessible a form of investing that is still open to anyone and able to provide a good retirement income.
If you want to report on the real cause of the property boom, report on the banks' irresponsible lending practices. Report on the debt-fuelled consumer binge that has seen people spend more on crap they don't need than they invest for their own retirement or their children's education. Report on the finance companies that offer terms they hope the customer can't fulfil so that the 4 year interest free offer becomes 4 years of interest, plus penalties, plus compounding interest if you can't pay the lump sum at the end.
Society didn't demand anything, they only responded to the offers presented. 
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