Subscribe to our newsletter
Couples with joint incomes of up to $100,000 before tax will be eligible for KiwiSaver grants to buy their first home, but they’ll be forced to buy cheap properties.
Under the eligibility rules, outlined in Treasury post-Budget notes, people who get the housing grants will be forced to buy a house with a value in the lowest 25% of homes in their town, area or city. (more…)
Property speculators who are reaping millions of dollars from the super-heated housing market are about to feel the heat from a tough new tax crackdown.
Finance Minister Michael Cullen said Inland Revenue would get an extra $14.6 million over the next three years to strengthen property transaction audits. Speculative activity was driving up house prices and household debt levels, he said. So giving IRD more money would help it enforce the law. (more…)
Savings on food, clothing and home supplies have enabled New Zealanders to cover a huge increase in housing costs over the past 50 years.
A Weekend Herald analysis of long-term spending patterns confirms property investor Andrew King’s controversial statement last week that would-be home-buyers are spending more on “coffee and brand new cars and overseas trips”. Spending on cafes, private transport and overseas travel have all increased. (more…)
Three articles on home ownership this week put the blame for rising house prices on property investors. However, there is a considerable amount of misinformation and misunderstanding that has led the writers to their conclusions.
Before assigning blame we need to ask two questions. Are property investors really to blame and if they are, would the capital gains tax on rental property help the situation?
When considering misinformation, Tapu Misa made an excellent point when she discussed “those investment seminars … the kind that promise to show you how to make lots of money by using the equity in your home to buy a rental property”. (more…)
With hundreds of emails being posted on the Herald website, it seems that my comment on coffee and cars has created quite a stir and considerable debate. Four short sentences, but a week later and the phone still hasn’t stopped ringing.
I seemed to have polarised the community. Many replies have said that it can’t be done and that I’m a hypocritical baby boomer who is out of touch with generation X’ers. However many people have agreed with me and it was pleasing to see that Herald reporter Simon Collins checked my figures and confirmed my belief in an article he wrote. (more…)
Recent Posts