BIG NEWS - Expected date for change to 5 year Brightline Test

[eri]

i don't see houses as being specially worthy of a special tax

if there's an affordability issue it is due to a lack of supply

increasing the taxes on a product has never boosted supply

nz'ers, gov. + councils, need to stop focusing on extremely short term thinking

and start making it easier + cheaper to build

the only way the affordability + supply problems can be solved long term

[Perry]

Are You For Real?

Well OK... What's wrong with paying tax on capital gains. 'Investors' seem to be OK about the 'traders' paying capital gains but not so OK about paying the same tax themselves. Why not? Seems fair to me.

Do you know the difference between a gain via income earned and a gain via an unearned capital value change?

We really have been through all this before, in the CGT thread.

Did you read it? Do you know what inflation is? Do you know what inflation does to so-called gains?

To put that another way: when is a gain not a gain?

Answer: when the numbers change but the purchasing power remains the same.

[Aston]

Do you know the difference between a gain via income earned and a gain via an unearned capital value change?

We really have been through all this before, in the CGT thread.

Did you read it? Do you know what inflation is? Do you know what inflation does to so-called gains?

To put that another way: when is a gain not a gain?

Answer: when the numbers change but the purchasing power remains the same.

Oh wow, I get it now. And here I was thinking you were all just being greedy.

Thanks Jerry.

[Perry]

Your written comprehension ability is now rather obvious.

[Aston]

Your written comprehension ability is now rather obvious.

I like you too Mr Hatrick.

[Perry]

You're In Fair Company

Although he is quitting politics, Blenglish said that as buildings went up in value, they should not qualify for depreciation.

Being the Dipton dipstick, he chose to pretend he didn't know the difference between value and inflated numbers, so he could increase the real contemporary tax take on the wooden dollars of inflation. Probably why they made him Minister of Finance. That way, he could fiscally responsibly increase NZ taxpayers' debt from 18 to 80M dollars.

He managed to fool almost all terminally gullible New Zealanders. Even Comrade Commissar Robertson has now been beguiled. (Because he's no longer in opposition.)

After years of criticising National for a significant growth in Crown debt to more than $60 billion over the last decade, Grant Robertson now seems to think the state of public debt is the best thing about the New Zealand economy. He says long term spending pressures mean Labour is unlikely to try to pay off New Zealand's government debt.

[Beano]

Well the way I see it is that property speculators, traders, investors are all trading in other people's homes... And making money from it, big money. To me that is immoral because the more money you are making, the less likely your tenants will ever be able to afford to buy their own home. So I think it is totally fair and just for there to be a Capital Gains Tax on houses, other than the PPOR.

I don't believe investors are at all concerned about fairness, they are more concerned about their own personal wealth.

I think the Brightline should be extended out to 10 years, that would be even fairer IMO.

So Brightline applies only to residential Aston not Commercial ?

[Bob Kane]

To me that is immoral because the more money you are making, the less likely your tenants will ever be able to afford to buy their own home. So I think it is totally fair and just for there to be a Capital Gains Tax on houses, other than the PPOR.

What a wonderful quote - I'm not sure where to start.
Instead of looking at why house prices are going up and reviewing what could be done about it, you prefer to hurt landlords under the guise that it will help tenants.
If you wanted to help tenants buy a house, why not support moves to increase the supply of new, cheap houses?
Why not encourage developers with tax incentives?
Why not help tenants save for house deposits by some financial assistance?
Will a CGT increase the supply of cheap houses?
Your bitterness is restricting your potential contribution.

[Viking]

But what's wrong with paying tax on your income Donna?

Plenty. It is no longer income.
You want to pay more tax then be our guest. I'm sure plenty of us would be happy for you to pay it for us.

what a turkey.

[cube]

b) Restructure in April after changes. The property would be subject to 5 year rule. So, if the rental is sold say three years later, then any gains would be taxable!

And a loss?

[Rosco]

And a loss?

offset able against future Brightline profits

[Perry]

Do As Gummint Says, Not As Gummint Does

Gains payable immediately, losses paid sometime in the future. Maybe.

When, perhaps, there's another gummint in power?

No surprises, there.

[artemis]

Hundreds of new build apartments on the way. Who will buy them? Those buying to rent might not be so keen under the current regime. First home buyers maybe, but might wait for more favourable conditions via Kiwibuild. Kiwibuild to onsell? Housing NZ or other social housing providers?

The penthouses will sell quickly I predict. Resale might be trickier depending on the mix of residents.

If purchases off the plan are too low developers might be in trouble.

[donna]

Yeah they can't have it both ways - hurt the investors so they won't or can't buy and the available rental property stock continues to shrink. I see it's also happening in the UK too. Read in the FT today that by 2022 buy-to-let investors lending will be down by 25%, and first time buyers lending up by just 6%.

cheers,

Donna

[Perry]

Gummints and unintended consequences.

Common and highly stressed bedfellows.