Auckland Housing Affordability

[eri]

requiring foreigners to get nz ird numbers

will at least help work out big an issue they are

[drelly]

IRD will catch him once he has established a pattern, and then the penalty interest (after a number of years) will be glorious!

But will they? I know people who have done this 3/4 times in the past 5/6 years.

[PTILoveYou]

But will they? I know people who have done this 3/4 times in the past 5/6 years.

Then IRD needs to work harder and smarter =)

[drelly]

Does anyone know what the deal is with GST under these new rules? Either...

1. There is no GST to be paid, in which case, it would be more profitable to trade under these rules than before, or;
2. GST is due on sale, in which case the people who get caught out will be really stung because they can't claim it retrospectively!

[Davo36]

All aboard the housing gravy train:

Budget 2015: Waipareira Trust seeks Govt help in housing bid

5:00 AM Thursday May 21, 2015


Chief executive John Tamihere. Photo / Natalie Slade

West Auckland's Te Whanau O Waipareira Trust is bidding to enter the city's overheated housing market - and wants the Government to make land available, so it can build at affordable prices.

"I think in this Budget there will be grand opportunities for us to get about 150 houses up in Massey on state land in a good managed community, and that can be a proxy for a lot of other things we can do," he said.

The trust does not have any housing at present but sees affordable housing as the missing link in its portfolio of services.

Last year it reported income of $16.2 million, mainly from Government contracts, and net assets of $26.9 million.

Link

[Perry]

Doubtless inspired by the earlier 'deal' with
the Tamaki Redevelopment Company. The
same try on is in process in Hastings, I hear.

[Perry]

Housing Minister Nick Smith: All Houses Are Affordable To Someone
21 May 21 2015

Labour leader Andrew Little has challenged the Government to make all
of the new housing on Crown land affordable, but National's position
is unclear. Asked if he could guarantee that all of the housing would
be affordable, Housing Minister Nick Smith said by definition it would
be. "Well of course someone has to buy the houses and so of course
they will be affordable to somebody."

Go to the top of the class - than man.

[Perry]

Looks pretty much like what should be happening under existing tax law.
So its not really a CGT, though it will be sold as such.

It's the same income tax on property traders.
The difference now is IRD can just automatically ping anyone buying and selling within two years, and the properties involved are not owner occupied or relationship property.

Then IRD needs to work harder and smarter.

More Funding For Tax Chase In Budget 2015
22 May 2015

Hooft, a tax partner at Grant Thornton, said the Government's extra
$45 million for general tax compliance in the 2015 Budget was enough
to pay the salaries of another 450 tax auditors on an average salary
of $100,000 each. People should be sure to get their tax records in
order, he said. In total, the Government had allocated a total $74m
over five years for "extra tax compliance and enforcement", including
$29m targeting housing speculators chasing tax-free capital gain on
investments.

Hooft said the Government's pre-Budget "bright line" policy for tax on
housing investments would simplify questions for owners and tax authorities.
The mechanism removed debate about "intention" to buy and sell
property primarily for capital gain. Properties traded in after less than
two years of ownership (excepting a family home) would now be subject
to a gains tax. The Government's $74 million for tax collection signals the
Government's need to chase every taxpayer dollar and cent, Ernst and
Young managing partner Bruce Gemmell says.

"subject to a gains tax" ???

Does that actually mean: subject to income tax?

[Perry]

Immigration Peak To Fuel House Prices
23 May 2015

The net flow of people coming to live in New Zealand will peak next
month at nearly five times the long-term average - adding more fuel
to the Auckland housing market. Migration levels are not expected
to return to normal until 2017.

[Davo36]

Now that I'm investing and not developing: Bring it on!

[rich cr]

Totally agree Perry. I'm new to this so don't know much. But why is it Key isn't simply stopping overseas foreign investment at this point ? it seems the simple solution. Everyone I know thinks its lunacy to let it continue at least at the current rate ....

[eri]

what is the current rate?

in a year we'll start to know

[Perry]

Auckland House Price 'fire' Means No Rate Cuts Until 2017: NZIER
27 May 2015

The Reserve Bank can't cut interest rates without throwing fuel on the
fire of the Auckland housing market, according to NZIER. In its latest
Quarterly Predictions, the Institute of Economic Research says the
Reserve Bank is "in a bind" and that will see rates left on hold until
2017. Some other economists believe official interest rates could be
cut as soon as next month.

Ordinarily low inflation and the uncertain global picture, would
warrant an interest rate cut. "But the Reserve Bank can't afford to
throw any more fuel on the Auckland housing market fire. We can see no
alternative other than to hold rates steady until mid-2017," NZIER said.

[speights boy]

It's ALL about "supply, supply, supply"
"Build, build, build"
"Growth, growth, growth"
"That will solve the problem

Yeah Right !


Auckland property crisis: Shoddy building in hot market

Shoddy buildings are going up in Auckland as the council struggles with "significant" quality issues including unskilled construction workers without proper supervision.

The warning comes as more land is opened up for development in an effort to take some heat out of the property market.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11459438

[Perry]

T'wouldn't have been caused by the
ACC twerps in the first place, now,
could it?

Builders get licence cards

Too many PT threads to list about
leaky buildings okayed by Auckland
city, as well.

Worry not, SB. Your beloved RBNZ
will have a plethora of fixes in their
grab bags of tricksters.