I was recently reading an article about Susan St John and Terry Baucher’s latest call for a harder taxation regime for all residential property in New Zealand. (Yes, harder than the myriad of changes we have already had.)
These chardonnay liberals are promoting the annual taxation of equity in residential property (private homes and investment property) with an implied rate of return (called a ‘Fair Economic Return’). They are bitterly disappointed that NZ did not consider bringing in an accruals-based capital gains tax, and spend much of their time maligning property as an asset class to the government and left-leaning press. Despite the biggest changes to NZ property taxes in a hundred years, this pair of....
Our client has a home worth $1.5m in Auckland, and only $20k of debt with a main bank. They are a classic case of having high equity and low income.
They wanted to look at purchasing a trade property (buy, do-up, sell) and didn’t want to let the fact they weren’t working hold them back. They also didn’t want to get a job just to please the bank.