I know it seems really foreign to us here so its hard to accept. Also money is an emotional thing for some people.

I have no issue with CGT what soever. Someone has 10 IPs and sells them, they should be paying tax on income generated, whether its slowly acquired or not. I think the rule in OZ is you have to live in it for 12 months before its deemed principal place of residence (I could be wrong), so there are ways around it.

Ive never heard of CA's examples so cant comment, never saw that in the decades I spent there.

I have paid CGT in OZ and had no problem with it then, I see no issue with it now. People are still making a massive profit after CGT is taken out, vs 3% in the bank. If they arent, they shouldnt be in the investment property game (lets not forget a lot of IPs in are cashflow focussed vs CG).

I cant see why its not logical to pay tax on income. An investment produces income. The tax rate is different and offset.

What was the statistic for RE purchases from overseas investors, I want to clarify, was it 45%?

Spot on Kevin.

But hey we all one team on this forum. We all have very different views.

Its a very foreign concept to NZ but very much the norm in some countries.

CGT doesnt even have to represent high taxable rate either. Its how its implemented.

But paying tax on earning money is all it is.

If the reserve bank (who I think made a statement about the Govt the other day) stepped in and we also introduced CGT, along with foreign investing policy, I think Auckland could return to sustainability (within 10-15 years). WHo knows, maybe these trillions of immigrants we are being told about might also be able to afford a house ;-p

Yes PJC, times are tightening across the ditch, the mining boom has gone boom, with mines now shutting down due to plummeting prices and demand, and with no new mines being made, all the development stage jobs over there are drying up very fast. It will take some time, but this will trickle down throughout the economy over there.

it's not a silver bullet that will cure the Auckland problem, just one of a number of steps that need to be taken to cool things down.  What the reserve bank are panicking about is that when the inevitable price correction takes place if it is sudden, not gradual, it has the potential to bring down banks.  Banks that are over exposed to property lending (which is a lot of NZ banks) could be in big trouble if the value of that property drops quickly as they won't get their money back.  The big concern about that is this government, against the advice of the IMF, decided not to make banks carry any insurance for peoples deposits.  So if a bank goes down in NZ all accounts will be instantly frozen and the bank will take as much money it needs from the accounts to make it solvent again (much as happened to many in Greece).  If that happens to be your life savings, tough luck.

Sure there is no cgt but if you are in the property business you need to pay income tax on the gain on sale of properties so people in the development game don't get off Scott free.

https://www.ird.govt.nz/property/property-common-mistakes/special-tax-rules-businesses/

CGT seems to be the focus of all this conversation and I can see why some homeowners would be against it.

The true focus here should be the Governments failure to do anything about kiwis lives been negatively effected by policy or lack of.

I've sat in auctions and been outbid by Asian buyers who literally flew over that morning to buy property and do not speak a word of English. They are not there for any other reason than investment. They will not pay tax and they will not contribute to our economy.

Many of these buyers are buying without even looking at properties.

The next group of people that I've lost at auctions to are recent imagrants

The smallest group ive lost to kiwis of all races that have been here for some time.


All of the people that think this is just an Auckland thing and no big deal need to wake up. What do you think it will look like when your county is being invaded and taken over?

Do we need this for our economy? Do we need to get bigger? Consume more? Develop more? Is New Zealand's relative isolation and size one of the reasons you like being a Kiwi?

SeaOtter wrote: whippersnappyr wrote: SeaOtter wrote: whippersnappyr wrote: Auckland prices are just shy of 25% above the previous peak in 2007 in real terms. Doesn't seem that bad at 3% per year. With Auckland population growth and constraint on new land for housing this is economics rather than a bubble in my view. The network effect means that Auckland ever increasingly becomes the place to be for business and new immigrants. I read somewhere that 70% of immigrants settle in Auckland. 25% increase figure is national isn't it? Rather than just Auckland? No that's Auckland. National is 3.7% Wow. I've personally seen areas go up 40-50 % in two years. I guess I must be looking in areas that were more likely to go up rather than say Mangere with a low increase.

You may well have. Real means adjusted for inflation

And it still rises. Frantic buyers everywhere. Scary. Central banks in U.S E.U ,Japan printing money like no tomorrow. China announced it will begin printing last week.On back of that Shanghai stock markets rocketed to new highs. With Q.E causing such massive distortion of assets and prices how do you put a price on anything anymore. Seems fundamentals have long gone. Bad news fuels the markets in the U.S as that means more printing . Maybe we are seeing end game of GFC.
Printed money  fuels bubbles. Auckland housing is one of them. Our banks are awash with cheep Q.E money.No wonder they dont want to pay locals fair interest rates.
Who knows where from here.
Australian economy still in decline. Same for china ,U.S ,Euro zone.
N.Z herald headline-Housing collapse aucklanders should fear. Draws comparison to Torontos 50% housing crash. Seems far fetched but if Auckland went down by 50% it would really knock the economy. Banks could fail ,dollar would tumble unemployment could rise dramatically.
Rabo bank N.Z gets credit rating downgrade -read that today.
So if it did crash due to any number of external factors ,who can know when. Would it be Krakatoa No 2.
Meanwhile every day at a time. Getting out fishing just as important  as house market/madness is something we have no control over.

It's all pretty weird alright.

Where in Auckland can you find a $550 K house. If you know of any snap them up quick. Great bargain.