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.