English continues to signal changes to property tax

Well lets think... a shortage of rental property due to "Property tax" ... supply v demand ...rents go up. Meanwhile National loses the election as its voters who were screwed by Finance Companies under Cullen get screwed by Bill. Wopnder why you got kicked out from being Prime Minister ,Bill? take control of this John or wear the consequences.

For the record, the two typos in my last post were out of anger, not tiredness.

Finally though, those tax cuts Bill? ?They seemed to have morphed into more tax. How did that happen?

What an ignoble, rotten government National have become already.

@8.09A.M.comment well said. Anytime soon wee Willie or w'ont he pull the trigger on all small business endeavours as well ,they are the same as investors,only under a different hat.Once more @8.09AM YOUR COMMENTS SHOULD BE FRAMED,well said.

NZ is fast heading to a situation were it will be insolvent. Something has to change.

LAQC tax avoidance has become so mainstream its got out of hand. If you have purchased rentals for the sole purpose of LACQ based tax reduction and capital gains watch out. Perhaps you should cash up to a position were the rental income actually produces a return, this reduces your risk, lowers NZ international debt mountian but you will probably then have to pay more tax....good for roads, schools, hospitals etc?

Hopefully these changes will be balanced in a raise in GST, and a leveling out of the top tax rate balance for companies, trusts, and high income earners. Time will tell, but all looks like very clear signals from Wellington.

You may be correct to some extent but lets remember that there are three factors that affect property prices and rents etc. They are demand, supply and price. If you increase rents to compenstate a tax then demand will naturally decrease, people will live with their parents longer, couples will move in togeather and university students will start 'double bunking' (just like the prisons will soon). This clearly will result in decrease demand and vacant rental properties where rents will fall.

Basically I think that while rents may raise slightly, we are more likely going to see a decrease in investment property values to a level where the return on investment will be the same as what they are earning now.

Bill English is the last person to be talking about closing loopholes in property allowances!

On a more serious note, why should property investors be treated any different to other investers (and I mean investers, not people who trade property for financial gain?)

And, one last point, surely such a move would hike rents by about 50% to cover the additional costs (or are the National government going to start building state houses again, paid for by some form of hiden tax rise?)

I suggest that Mr Key puts Mr English back in his box, as I am pretty sure that the vast majority of property investers in New Zealand would have voted national at the last election.

heres a novel suggestion ........level the investment palying field by reducing tax on super schemes. First $ 5000 tax deductable scheme earnings not taxed income in your hand from super scheme taxed as income. Now theres a thought!!!!!!!

Ok, let me get this straight;
1) A National government wants to raise taxes
2) A notional government wants to rents to rise and house prices to fall
3) A National government will, therefore, want to raise benifit payments or invest in state housing again
4) A National government wants people to stop investing and rely on the Cullen fund for their pensions (didn't they just suspend contributions to that?)
Have I missed something, or is Bill English spouting bollocks whilst John Key is away again?

Sorry Billy Dont Be A Fool!

There appears to be some misconception here that property investers are treated differntly to other investers?

Its a little known point that capital gains tax already applies to property traders, and also taht any depreciation claimed by property investers is clawed back by the IRD when the property is sold.

If the idea goes ahead - and I doubt that Key will want to updet the several hundred thousand property investers in New Zealand who are predominantly National voters - property prices would collapse and rents would sky rocket.

I'm making plans to leave permanently. Property investment via being a landlord was the only thing making the country economically viable, & if that's going then I might as well live somewhere I can earn a decent wage. If the right wing think this is a good idea, imagine how screwed the country will be when the socialists get back in again, the only ones left will be the bludgers - time to go before it's too late, Hawaii sounds nice.

Its easy; borrow $500k from the bank, buy shares and pay the interest on the loan with the dividends and then sell the shares at a proffit later.

No, it doesn't make sense and that is why people invest in property.

Those suggesting we should invest in productive parts of the economy miss one important point
Many of us borrowed 100% to buy the rental house, we have no spare money, and definitely would not of borrowed 100% to buy stocks and share.
We might loose 10~20% on a house, but could loose 100% over night in stocks and Share, and have a huge loan left to repay with no equity
Also many 1,000's of us bought brand new houses to rent out, increasing the new housing pool
A major tax change would force many of use to sell (reducing rental stock) or have to increase rents, I would be looking at $100+ a week

The NZ econmony is never going prosper on the back of real estate. Its time more incentive was given to investors to put their money into export companies and the NZ share market. We need to be earning export dollars not bringing in off shore money to sink into real eatste. Is NZ inslovent?

If I were to invest in the sharemarket I could think of better places than NZ shares.