Budget 07: Taxman closes in on property speculators

May 18, 2007

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…)


Housing costs dwarf ‘luxuries’

May 8, 2007

News — Tags: , — admin

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…)


Myth of tax bonanza for rental investors

May 4, 2007

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…)


Coffee and Cars

May 1, 2007

Articles — Tags: — admin

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…)

King’s storm in coffee cup

April 30, 2007

News — Tags: , — admin

Andrew-KingAt least he practices what he preaches.

The property investor who caused controversy last week by telling people they should stop buying coffees and cars and going overseas on holiday doesn’t buy coffee himself and owns a $15,000 car he bought two years ago.

New Zealand Property Investors Federation president Andrew King said his only real extravagance was a five-week holiday to Malaysia and Thailand with his family.

But he did admit to cracking now and then. His initial response was “none” when asked if he had any coffees. But when pushed he came back with, “Well, I have the occasional one.” (more…)

Housing crisis: Experts’ tip – don’t hope for too much

What’s the answer for Aucklanders trapped in the affordability squeeze?

Property experts say those facing a lifetime of renting must change their ideas if they want to get on the housing ladder.

DTZ’s Ian Mitchell, who worked on the two Centre for Housing reports issued on Monday, said Aucklanders simply had to change their expectations.

“In Sydney or Melbourne, if you wanted a three-bedroom house on a section close to where you work, you’d know you would have to compromise and buy a unit or apartment instead,” Mr Mitchell said. (more…)


Picking a property manager

April 27, 2007

Finding good tenants is tricky enough, but choosing a property manager to do it for you also has risks, reports Penny Harding.

For some property investors, the hassles of finding tenants, chasing debts and organising maintenance are just not worth it. But hiring a property manager may not mean the end of trouble.

Property managers typically charge a fee of 7.5% – 8.5% of rental income and in return they will handle the messy details such as checking tenant references, inventories and dealing with tenant demands. (more…)

House prices leave rents behind

April 26, 2007

Average rents have risen faster than wages in the past five years and are tipped to jump further in the next two years as the rental market catches up with Auckland’s soaring house prices.

Property Investors Association vice-president Andrew King predicted yesterday that Auckland rents could leap 20 per cent in the next two years. (more…)

Don’t buy coffee and cars if you want a house

April 24, 2007

Articles — Tags: , — admin

A leading property investor has questioned why people on above-average wages cannot afford to buy a home after a report predicted dramatically falling home-ownership rates.

Property Investors Federation vice-president Andrew King said people on $70,000 a year had to look at their other spending – on things like coffee and cars – if they thought they could not afford a house. (more…)

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