We know what is squeezing the life out of the rental market

[artemis]

I have long proposed that anyone who buys a property, rents it out, and then eventually sells it without actually making any profit at any time from the renting should, in the absence of any strong and logical reason why they have done that, should be assumed to have gone into that deal with the capital gain and only the capital gain in mind and thus should be assessed for tax on that gain.

(A horrible sentence, I know, but you get the idea).

IMO it depends on the net rents position over the period held, and in particular if that is improvingover time. So if net rents is negative $100 in year 1 and steadily moves towards say negative $40 in year 8 that would support moving to positive net rents in time. Thus moving towards an income stream and paying tax on it.

Perhaps that would count as a strong and logical reason?

[Keys]

I believe start up costs for any business are high.

[Don't believe the Hype]

Will capital losses become claimable?

[flyernzl]

Don't be silly.
Everyone knows that property always goes up, never down.

[Perry]

Will capital losses become claimable?

Gummints (IRD) are all about collecting tax and checking to see if you've paid enough.

Not about refunding what you're due and ensuring you have not paid more than your fair share, as per legislation.

As Keys observes, most starting-out business enterprises make initial losses.

But this is all about emotive, populist attacks on landladies.

Not about reason and logic.

In another post, I reported on this myth:

More investment property sales to be stung with capital gains tax
15 Feb 2017

Who amongst us - let alone the NZPIF - has the energy to make a complaint to the Press Council pointing out that the item is a lie: NZ does not have a capital gains tax.

---

EDIT

O.K. Lead by example. (So tis said.)

I have e-lodged a formal complaint.

[Bob Kane]

Will capital losses become claimable?

Of course.
It's a two-edge sword.
If the market goes off the boil then introducing a CGT is perfect timing to get a tax refund to cover your loss.

[Keithw]

Dont be too hasty in assuming that Bob. I remember this being asked during the election campaign and the response was NO. they would be taxing gains but not refunding losses. A discrimination in tax law, and not how it works in Aus, but their excuse was "we have to do this to dampen the property market and make property affordable to first home buyers"
They could never explain how taxing something was supposed to make it cheaper - just ideological nonsense as usual.

[Perry]

Who amongst us - let alone the NZPIF - has the energy to make a complaint to the Press Council pointing out that the item is a lie: NZ does not have a capital gains tax.

---

EDIT
O.K. Lead by example. (So tis said.)
I have e-lodged a formal complaint.

Well, I never!

The Stuff item has been amended, since I lodged my complaint.

Notably:

Nash said said that reducing speculative demand would help to improve affordability for owner-occupiers. (New Zealand does not have a comprehensive capital gains tax in place.)

And

NB: This story has been edited for context to include a sentence reminding that New Zealand does not have a comprehensive capital gains tax.

The inclusion of the word comprehensive is a strawman logical fallacy intended to distract readers from the false CGT information still embedded in the article.

[To be continued.]

[Perry]

'Disastrous tenants' wreak havoc in homes
22 Feb 2018

Four sets of "disastrous tenants" has put Kerikeri resident Di Maxwell off ever being a landlady again. They trashed the house, left wet laundry rotting the floorboards and fled owing thousands of dollars in rent. She says that in all cases, she checked the tenants' references when they were available and in one instance got reassurance from a local church who vouched for family.

"I believe in giving people a chance." She is speaking out after the Stuff story highlighting a rental shortage in the Far North, causing some tenants to seek alternative housing options such as living in tents, teepees and caravans. "This is part of the reason why there's a shortage of rentals," Maxwell says. "People get sick of being abused."

[Wayne]

4 sets of bad tenants - is that just unlucky or bad selection process?

[eri]

victim blaming

in the current climate?

[mrsaneperson]

There is no shortage of rentals ,their is instead an over supply of delinquent tenants that no landlord in their right mind wants to take onboard. Hence the state will have to house the undesirables by building more social housing.

[flyernzl]

Exactly. Well said.

[Nice]

http://www.sfexaminer.com/sf-forces-airbnb-purge-website-illegal-listings/

Apparantly this has made a big difference to the rentals available in San Fran; and the price. Perhaps the powers that be should try it here, but then they wouldn't be able to blame landlords for any ongoing lack of availibility on rental property.

[Perry]

Those who wish to rent out their homes for shorter than 30 days on sites like Airbnb must register with The City. That's for short-term rental listings. Kevin Guy, head of the six-member strong Office of Short Term Rentals and who’s charged with registering and enforcing the regulation of the industry . . .

There you have it! Follow the money! If a Council's involved, the smell of empire building will be in the air.

Wonder what the registration fee is?