Property in NZ

[tweak'e]

The answer to the problem is very simple.

Introduce a Capital Gains Tax, like our cousins across the ditch, and watch the problem disappear.

Im all for a CGTax on 2nd homes or houses you dont live in, as the ONLY reason they are bought is to make a profit .
I dont think CGTax will solve any issues though . If you can make $100K++ in a year , a tax wont put you off .

In theory selling of investment houses was allways taxable , the IRD just dont often tax it as income/profit .

i don't think that goes far enough.
CGT is only one measure that needs to happen, but it needs to go on ALL houses. that simply because everyone "invests in their house" to make money. thats probably a bigger factor than landlords.
but also other measures need to happen, like not allowing councils to pile on tons of fees on new housing. no one should be making money off houses including councils. they need to find another way of financing.

kiwis really need to start treating houses as a cost rather than an asset. a big culture change is required. build homes to suit people not build them to suit the next buyer.

[B.M.]

i don't think that goes far enough.

Nor do I, so the "Resource Management Act" goes too.

It's only being used as a weapon for Council's and the like to "Empire Build" and for others to halt progress.

None of which was its intention, so out it goes.

[ClarissaBull]

my thoughts go to the fact that a house is an investment in the first place - and you need to invest in something that will bring you income. That is why I invest in houses in Miami - good weather - ocean, it will always bring income - especially during the tourist seasons

[piroska]

my thoughts go to the fact that a house is an investment in the first place

That's the thing...it's not. IT's a home. But we're being taught to think of it as an invetsment, hence the flipping, developers and slumlords and the entire madness.

[Lurking]

*2

It's the same thing with shares and in the olden days the company would issue bonus shares as an appreciation of investing in the new company in the first place.

Who would invest in Florida with it's tornados' !!.

lurking.

[tweak'e]

That's the thing...it's not. IT's a home. But we're being taught to think of it as an investment, hence the flipping, developers and slumlords and the entire madness.

+1
thats it in a nutshell.
the problem is people investing in homes to make money which is an unsustainable practise.

[DrNum]

I heard that we can put a single barn there, good and has higher potential for business

[decibel]

+1
thats it in a nutshell.
the problem is people investing in homes to make money which is an unsustainable practise.

As Bill English put it, "as a nation, we don't get rich buying and selling second-hand houses among ourselves"

For starters, the Reserve Bank should ban mortgages for "investors"

Do they have that power?

[tweak'e]

As Bill English put it, "as a nation, we don't get rich buying and selling second-hand houses among ourselves"

For starters, the Reserve Bank should ban mortgages for "investors"

Do they have that power?

i'll argue that some people get rich selling selling second-hand houses among ourselves. however the country certainly doesn't and neither do the people who have to buy them to be able to live.

[piroska]

i'll argue that some people get rich selling selling second-hand houses among ourselves.

He said "as a nation" not as an individual.