Property is about to get a tax thump.
So investors will put money in the stock exchange?
I think not.
The Securities Commisin is widly derided. The public, often castegated for an absense of rational decisionmaking, are very astute to put money in property, which is governed by clear , enforced laws. Not The NZ Wild West.
Even after the '87 cock ups, and susequent fiddling, the sharemarket is still an easy place to loose ALL of an investment.
Think about this aweful indictment: In '87 ( at it peak) the Australian sharemarket value was 4.2 times the NZ value. Now it is 33 times.
Dont beat up property Bill, Beat up the Securities Commission!
Sunday, April 18, 2010
This Really Peeves Me About the NZSX vs Property
The New Zealand Stock Exchange Index compounds itself by adding dividends in. AND can only achieve 6.5% pa over the last 17 years.
Yet often its' performace is compared to basic house price movements. Imagine if rent on a house, nett, was added to the price movement...then compounded! Say that nett rent was 4% The comperable figure after 17 years would be ....huge. It would have to be a compound 12%, ie doubling in less than 8 years.
Any comments from someone good at compounding?
Yet often its' performace is compared to basic house price movements. Imagine if rent on a house, nett, was added to the price movement...then compounded! Say that nett rent was 4% The comperable figure after 17 years would be ....huge. It would have to be a compound 12%, ie doubling in less than 8 years.
Any comments from someone good at compounding?
Thursday, April 15, 2010
Here's Wellington NZ's Best Beach House
so you win Lotto, want a good beach house...
check this. But you will want a cleaner. 900 m 2. The house, not the section.
I cant seem to succeed to add a hyper link here, you will need to cut & paste this: http://www.propertypress.co.nz/video.house/931
Call me if you win tomorrow. Ratable Value $ 2.7 million
check this. But you will want a cleaner. 900 m 2. The house, not the section.
I cant seem to succeed to add a hyper link here, you will need to cut & paste this: http://www.propertypress.co.nz/video.house/931
Call me if you win tomorrow. Ratable Value $ 2.7 million
I agree with the bank man
Tony Alexander of the bnz ( no its not the BNZ, they have marketing people so its the bnz,) has always done well in commenting & predicting, in my opinion. I say that allowing that the economist Galbraith once said at a party " astrology was invented to make economics look good"
Tony said today, & I agree "In the housing market there is some evidence – based on Auckland data – that worries about tax changes have stalled turnover but prices are holding up and listings are not escalating madly.'
Rocky times for rental property, I predict
Tony said today, & I agree "In the housing market there is some evidence – based on Auckland data – that worries about tax changes have stalled turnover but prices are holding up and listings are not escalating madly.'
Rocky times for rental property, I predict
What about the Tenants?
Personally I think tax changes to Residential real estate investment could be a disaster about to unfold...for tenants
I dont say that because I sell Real Estate..
this is why.
There is a general agreement rents will have to go up if landlording is made less profitable. Its as as simple as that.
For every tenant there needs to be a landlord. NZ owner occupier property ownership has been only slightly declining.
( claims the owner occupier percentage was falling were rebuffed when it was pointed out properties going to family trusts were going in statistics as a change to investment vs "owner occupier")
No, many people who have never owned a house , but could buy a house rent because....they are going overseas soon.
As Ive said before, playing with property is an easy one for the government. But its the lack of profitability in the economy thats the problem.
If the government make being a landlord less atractive...who will tenants rent from?
If yields have to be higher, values have to be lower. How does a loss of capital of say 20 % help redirect investment? It dosnt make other options suddenly more profitable...just reduces wealth. I cant see sellers of investment property putting it in the bank, or buying NZ shares. It will go overseas.
And the question I can not even begin to answer:
Who will the 30% of New Zealanders who rent ( & remember, only 3 % of NZ tenants live in state owned rental houses) have as landlords, if the government make it less attractive to own rental property?
I dont say that because I sell Real Estate..
this is why.
There is a general agreement rents will have to go up if landlording is made less profitable. Its as as simple as that.
For every tenant there needs to be a landlord. NZ owner occupier property ownership has been only slightly declining.
( claims the owner occupier percentage was falling were rebuffed when it was pointed out properties going to family trusts were going in statistics as a change to investment vs "owner occupier")
No, many people who have never owned a house , but could buy a house rent because....they are going overseas soon.
As Ive said before, playing with property is an easy one for the government. But its the lack of profitability in the economy thats the problem.
If the government make being a landlord less atractive...who will tenants rent from?
If yields have to be higher, values have to be lower. How does a loss of capital of say 20 % help redirect investment? It dosnt make other options suddenly more profitable...just reduces wealth. I cant see sellers of investment property putting it in the bank, or buying NZ shares. It will go overseas.
And the question I can not even begin to answer:
Who will the 30% of New Zealanders who rent ( & remember, only 3 % of NZ tenants live in state owned rental houses) have as landlords, if the government make it less attractive to own rental property?
Changes are Gonna Come
No denying now, that tax changes on owning Investment Residential Real Estate in New Zealand are in the short term, not going to be for the better....for anyone.
Actually thats not true: What do you think of this scenario?
Being a landlord becomes less attractive ( I assume you know what the budget will do, if not a few "comments" here & I will explain.)
The worst properties get dumped on the market. I can tell you, in Wellington these really are very good location, very bad condition 100 year old houses.
Prices fall.
who buys them? Young first owners wont get funding. & they are high income hard workers...not the old Kiwi "do up a house instead of have a life shopping in Sydney" The buyers with money wond buy dumps. Some of this investment stock really is in terrible condition.
Da Da Da Da!..... Return of the Doer Upper, flick on, make a buck, hard worker!
Actually thats not true: What do you think of this scenario?
Being a landlord becomes less attractive ( I assume you know what the budget will do, if not a few "comments" here & I will explain.)
The worst properties get dumped on the market. I can tell you, in Wellington these really are very good location, very bad condition 100 year old houses.
Prices fall.
who buys them? Young first owners wont get funding. & they are high income hard workers...not the old Kiwi "do up a house instead of have a life shopping in Sydney" The buyers with money wond buy dumps. Some of this investment stock really is in terrible condition.
Da Da Da Da!..... Return of the Doer Upper, flick on, make a buck, hard worker!
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