Landlords making capital gains!!!

[imd6662]

Shock, horror, surprise! Landlords are benefitting from increasing house values.


http://www.stuff.co.nz/the-press/bus...st-cash-in-big

http://www.nzherald.co.nz/business/n...ectid=11227093

O Capital Gains Tax, where art thou?

[Wayne]

So there is more chance of making money by selling than renting - so?
Of course, once they sell they don't get any more gains or rent.
And if they buy again they buy at higher prices.
Don't see the win there - unless you are planning on cashing up.

[Davo36]

They'll have to stop us!

Imagine making a profit in business at other people's expense!

Oh the horror!

[Maccachic]

They'll have to stop us!

Imagine making a profit in business at other people's expense!

Oh the horror!

Personally I think they should go after food sellers you can live longer without housing than you can without food....

[JABlog]

That Anne Gibson - certainly knows how to make sensational headlines.

[Bluekiwi]

I wonder what capital gain they made if they bought in 2007.

And I wonder what the cash outgoings were over these years that they made gains.

I also wonder about the amount of unpaid hours investors have spent looking after the whole gambit of having a rental property.

Then you have to also wonder what costs to advertise and sell and pay lawyers and accountants to realise said capital gains.

And I also wonder wonder wonder ....

If these people get taxed anyway as they were setting out to speculate to make a tax "Paid" gain.

[Wayne]

From my read of the articles they hadn't neccessarily sold - they would just make 'huge' profits if they did.

[Bluekiwi]

From my read of the articles they hadn't neccessarily sold - they would just make 'huge' profits if they did.

Well its just paper money until you sell.
And the investor is still experiencing all the pain mentioned above, until anything is realised.
And if its there own house, well what has changed for them ?

[Wayne]

Well its just paper money until you sell.
And the investor is still experiencing all the pain mentioned above, until anything is realised.
And if its there own house, well what has changed for them ?

Exactly.
And if they sell to buy something else they have to buy at a higher rate.
For the home owner, if they have a $400k house now and aspire to have a $600k quality (or location) later when their house doubles so will the desired home.
So instead of their desire being $200k away it is now $400k away.

Only really works if you are in a position or desire to sell and walk away.

[Bluekiwi]

You have got to think these crazy prices will tempt a few people to sell up and buy a better house for half the price out of Auckland.

Those that are not tied too much too family and friends.

[DIY Donz]

Exactly.
And if they sell to buy something else they have to buy at a higher rate.
For the home owner, if they have a $400k house now and aspire to have a $600k quality (or location) later when their house doubles so will the desired home.
So instead of their desire being $200k away it is now $400k away.

Only really works if you are in a position or desire to sell and walk away.

Unless they like living in that suburb and decide to renovate and create that desired home. That's what I'm doing and those crazy prices just give me a level of reassurance that I'm not over capitalising.

[donna]

Didn't the article suggest there's another 5 years of 'boom' to go? We're 2 years in on the 7 year cycle.

cheers,

Donna

[Davo36]

Didn't the article suggest there's another 5 years of 'boom' to go? We're 2 years in on the 7 year cycle.

cheers,

Donna

Yeah they said most cycles are 7 years, so 5 years to go.

Which makes no sense at all. The last high point was 2007/2008. So 7 years from then is 2014/15. So we're at the 7 year mark now.

Now of course it's never exactly 7 years, and the cycles are different in other ways too. This one could go on for ages or pop tomorrow, and no one knows which one it will be or something completely different.

[REIT]

For every buyer there will be a seller. Nothing to see, move along.

---

My REIT Blog

[drelly]

It is beginning to concern me that rental investing is becoming more and more of a political issue. I wouldn't be surprised to see some pretty draconian measures against it coming in.