>>I doubt this will happen in the current pol climate thou because labour >>need the middle class to vote for them.
That is the point. You and me make a difference ;-) Regards Leigh www.smootharm.com -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] Behalf Of Neven MacEwan Sent: Monday, July 30, 2007 12:38 PM To: NZ Borland Developers Group - Offtopic List Subject: Re: [DUG-Offtopic] RE: [DUG] basic question Leigh & Alister Its all to do with intent, even if you did own a house for 10 years, if you bought 100% financed on a sub-prevailing mortgage rate return then it would be relatively easy for the IRD to argue that your intent was to get capital gains (therefore taxable), I bought my rental for about 220K and it was returning 20+K gross therefore no issue, but the same building now has a value of 600+K and would struggle to return 30K rent, If you financed it more that 50% you'd be asking for trouble. There are so many people doing this that their only protection is numbers (sort of fiscal civil disobedience) the IRD could not cope with the work required. What possibly will happen though is that under politcal pressure the IRD will draw a line in the sand and say this is it, they will then persecute some poor prick to establish case law, then watch the fur fly! I doubt this will happen in the current pol climate thou because labour need the middle class to vote for them. Helen (though her behaviour doesn't show it) knows that social democracies get support because they assuage middle class guilt not because we are card carrying socialists. Neven > I don't think that the house bought for renting and hold one house for 10 > years and ird will treat it as trading house as business to make profit. > Thus no need to pay tax on the capital gain. > > Regards > Leigh > www.smootharm.com > > -----Original Message----- > From: [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED] Behalf Of Alister Christie > Sent: Monday, July 30, 2007 11:57 AM > To: NZ Borland Developers Group - Offtopic List > Subject: Re: [DUG-Offtopic] RE: [DUG] basic question > > > If your banking on capital gain, your not an investor, your a speculator > and therefor might be up for capital gains tax if you sell. > > Alister Christie > Computers for People > Ph: 04 471 1849 Fax: 04 471 1266 > http://www.salespartner.co.nz > PO Box 13085 > Johnsonville > Wellington > > > > Leigh Wanstead wrote: > >> The money paid to tax is lost permanent. There is no way to get the money >> back. The house price is always up and down. If you are willing to wait in >> long term(let's say 10 years term), the house price is always up. ;-) >> >> Regards >> Leigh >> www.smootharm.com >> >> -----Original Message----- >> From: [EMAIL PROTECTED] >> [mailto:[EMAIL PROTECTED] Behalf Of Alister Christie >> Sent: Monday, July 30, 2007 9:40 AM >> To: [EMAIL PROTECTED]; NZ Borland Developers Group - Offtopic List >> Subject: Re: [DUG-Offtopic] RE: [DUG] basic question >> >> >> Negative gearing property, is just stupidity. It's basically spending 3 >> dollars to make 2 dollars and then hoping property prices will rise >> (although this has happened a lot lately) and is very risky. I don't >> understand why people loath paying taxes so much that are willing to >> lose money to do it. >> >> Alister Christie >> Computers for People >> Ph: 04 471 1849 Fax: 04 471 1266 >> http://www.salespartner.co.nz >> PO Box 13085 >> Johnsonville >> Wellington >> >> >> >> Todd Martin wrote: >> >> >>> I believe the top personal tax rate has played a significant role in >>> >>> >> fueling >> >> >>> the housing boom. Let's face it, negatively gearing property investment >>> > is > >>> the only option open to middle class salary earners to reduce their tax >>> exposure. >>> >>> With high interest rates, comparatively low rents and no great tax break, >>> >>> >> many >> >> >>> of these people would flee the market. I think many would never have got >>> >>> >> into >> >> >>> it in the first place without the 39% tax bracket. >>> >>> Futhermore, while I agree that some people would spend their tax cuts, if >>> >>> >> they >> >> >>> got the chance, the ones paying most of the tax are also probably better >>> >>> >> able >> >> >>> to manage their money and would be more inclined to save/invest or reduce >>> debt. That should have a positive effect on the economy and everyone >>> > would > >>> benefit. >>> >>> I think there is too much prevalence of the "tax those filthy rich >>> >>> >> bastards" >> >> >>> mentality in the NZ psyche. >>> >>> Todd. >>> >>> On Fri, 27 Jul 2007 16:41, Phil Scadden wrote: >>> >>> >>> >>>>> The point is that at 40% of GDP the govt is the biggest spender, also >>>>> > we > >>>>> have huge increase in >>>>> bureaucracy which tightens the the labour market. >>>>> >>>>> >>>>> >>>> And doesn't this simply reflect WHO is spending the money? The >>>> > government > >>>> is not borrowing to fund spending. The alternative would be tax cuts. do >>>> you think the people getting the tax cuts are less inclined to spend >>>> > than > >>>> the people who getting the money via government spending? I agree that >>>> growth of central government size is a worry but in perspective, the >>>> increase is small. >>>> >>>> >>>> >>>> >>>>> For all the resource the government has at it >>>>> disposal no-one has categorically stated what is fueling the housing >>>>> market, tho I suspect it is >>>>> (in Auckland anyway) migration coupled with shortage of supply which >>>>> no-one politically wants to admit >>>>> >>>>> >>>>> >>>> And in South it is wealthy amercans buying up land for variety of >>>> >>>> >> reasons. >> >> >>>> I agree migration is issue. I also find that its impossible to find >>>> suitable people inside NZ so of course we are bringing more immigrants >>>> >>>> >> in. >> >> >>>> But we could lose the speculators thank you. >>>> >>>> >>>> >>>> >>>>> As for KS, do i want to sign away 8%-12% of my income for the next 10+ >>>>> years into badly managed funds >>>>> >>>>> >>>>> >>>> Is there a well managed fund? Some of the offering look pretty >>>> >>>> >> competitive. >> >> >>>> I am still making by mind but it seems that with combination of other >>>> investments and KS, this has to be worth looking at. If the funds dont >>>> do well, then time for holiday. however I am only 15 years out from >>>> retirement so pretty much got that sorted. >>>> >>>> ---------------------------------------------------------- >>>> Phil Scadden, GNS Science Ltd >>>> 764 Cumberland St, Private Bag 1930, Dunedin, New Zealand >>>> Ph +64 3 4799663, fax +64 3 477 5232 >>>> >>>> _______________________________________________ >>>> NZ Borland Developers Group Offtopic mailing list >>>> Post: Offtopic@delphi.org.nz >>>> Admin: http://delphi.org.nz/mailman/listinfo/offtopic >>>> Unsubscribe: send an email to [EMAIL PROTECTED] with >>>> >>>> >> Subject: >> >> >>>> unsubscribe >>>> >>>> >>>> >>> _______________________________________________ >>> NZ Borland Developers Group Offtopic mailing list >>> Post: Offtopic@delphi.org.nz >>> Admin: http://delphi.org.nz/mailman/listinfo/offtopic >>> Unsubscribe: send an email to [EMAIL PROTECTED] with >>> > Subject: > >> unsubscribe >> >> >> _______________________________________________ >> NZ Borland Developers Group Offtopic mailing list >> Post: Offtopic@delphi.org.nz >> Admin: http://delphi.org.nz/mailman/listinfo/offtopic >> Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: >> unsubscribe >> >> >> _______________________________________________ >> NZ Borland Developers Group Offtopic mailing list >> Post: Offtopic@delphi.org.nz >> Admin: http://delphi.org.nz/mailman/listinfo/offtopic >> Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: >> > unsubscribe > >> > _______________________________________________ > NZ Borland Developers Group Offtopic mailing list > Post: Offtopic@delphi.org.nz > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: > unsubscribe > > > _______________________________________________ > NZ Borland Developers Group Offtopic mailing list > Post: Offtopic@delphi.org.nz > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe > > > _______________________________________________ NZ Borland Developers Group Offtopic mailing list Post: Offtopic@delphi.org.nz Admin: http://delphi.org.nz/mailman/listinfo/offtopic Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe _______________________________________________ NZ Borland Developers Group Offtopic mailing list Post: Offtopic@delphi.org.nz Admin: http://delphi.org.nz/mailman/listinfo/offtopic Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe
