397,000 kiwi families currently live in homes rented from private landlords.
There are 189,100 individual landlords who own rental properties. Obviously most own one but some own many properties but it averages out to about two.
The total projected revenue from eliminating the depreciation write off is $1.3b. That involves housing rentals, industrial and commercial. Depreciation on housing is pretty much a fiction. It is real on most industrial and some but not all commercial buildings.
The average is $3,274 per rental property.
There is currently a tight housing rental market in New Zealand and especially in Auckland. The tightening up of the tax approach around property owners liability for tax on capital gains is already pushing some landlords out of the market and causing rents to go up. Both TV channels have reported on this recently.
Landlords are making it clear that it is their intention to recover their extra costs (write off forgone). Of course they won’t be able to do it overnight – but they will over time.
Any guesses? We'll put you out of your misery.
It was none other than Labour's 2011 campaign manager, Trevor Mallard. And for once, he's dead right. There IS a tight housing market in New Zealand. A Capital Gains Tax WILL push some landlords out of the property market, and rents WILL rise.
We wonder if Trevor Mallard still believes what he said on March 11th 2010. We wonder if he's discussed his beliefs with Phil Goff. We wonder if Trevor Mallard even remembers making such a coherent case AGAINST a CGT.
10 comments:
People's views can change. Usually based on evidence. Is it true you once didn't believe in a lifestyle that honoured God? You then found that to be a better path for you?
You expect to be able to pull others up on changes in political or philosophical thinking, but your own ideology is outside those parameters? I now understand why you don't want your identity out there... Credibility is non-existent.
Alex - the big difference is that Inv2 is not a Politician paid by taxpayers and nor is he a thug who goes around punching people.
They can indeed Alex. But the point here is that Mallard's argument of a year ago is even more valid now. There is already a rental shortage in Auckland, and other centres, and having investors quit the market or push up rents will exacerbate that. Labour is essentially going to make it more difficult for part of its key constituency to find affordable rental accomodation; who benefits from that?
Alex,religious views and the subject at hand are completely different (and thats just you being petty and pathetic really - prob because you cannot put up a reasoned argument).
CGT will push up rents - everyone except labour (excluding Mallard) can see it - I hope his words come back to haunt labour. I know Im going to bring it up when I see labour campaigning locally.
INV2 that is your opinion and, based on past history, ("I've seen the light!") is as likely to change dependent on all sorts of other factors, not least of which would be 'inner feelings'.
PDM you are what is known in the industry as a combination of lackey, stooge and patsy.
Anon. Rubbish – religious views inform attitudes and opinions and credibility issues.
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PDM you are what is known in the industry as a combination of lackey, stooge and patsy.'
To whom am I those things Alex - you obviously are new to this blog and have not read many of my contributions.
By the tenor of your comments are you a Labour Politician or a media person for a Labour politician.
"There are 189,100 individual landlords who own rental properties. Obviously most own one but some own many properties but it averages out to about two."
I believe the present head of the UN Development Fund owned 10 high end ones. She didn't do anything to stop the tax wrorts on Housing when she was prime minister.
"you obviously are new to this blog and have not read many of my contributions."
You're right, I should have included Knob-End.
Alex said,
"PDM you are what is known in the industry as a combination of lackey, stooge and patsy."
Alex, it's sensible to change your mind when presented with evidence which makes your previous stance wrong.
There has been no evidence to show that past criticisms of CGT are no longer valid.
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