What you stand to gain now we have no Capital Gains Tax
Got your eye on a good investment? Great!
Warming our hearts this winter is the announcement that there will be no Capital Gains Tax which would have penalised those buying and selling property.
The NZ Property Investors’ Federation, which often shares Rentals.co’s position on protecting landlords, has applauded the decision not to introduce a capital gains tax as the tax was expected to make rentals more expensive because of the need to pass costs on.
NZPIF notes the Government is still considering looking at land banking and speculation.
NZPIF chief Andrew King suggested in a recent media release that a CGT would never be popular, suggesting CGT was motivated by envy.
“Reform of the tax system lost any validity the moment it was decided to exempt the family home from consideration for no reason other than political expediency.”
“From that point onward, it was simply an envy tax and had it proceeded it would have had devastating implications on the rental sector including a reduction in the number of rental properties available and a commensurate increase in the cost of renting.”
REINZ chief executive Bindi Norwell says the real estate industry had grave concerns that a capital gains tax could push up house prices as seen in other OECD countries.
Lifestyle block owners were affected too – they faced a capital gains tax on the sale of their own home on land over 4,500 square metres.
It’s cold and wet and house prices are down a little – consider buying an investment property now
Something which should fascinate property investors is BNZ announced in May a home loan rate cut, dropping their three year Classic rate to 3.89%. This pushes low sub 4% rates out further. It is the lowest three year rate on offer in the market. BNZ’s new rate is due to run only until June 9, 2019. TSB, ASB and Westpac are matching this for one year, fixed. Although, there are subtle variations in their offers so please read the fine print on the banks’ websites.
Residential property investors may face some Reserve Bank minimum equity restrictions. The key thing is to get Rentals.co on the phone if you’ve got a notion to acquire a property. The Rentals.co team have handled as many as 1000 rental or sale properties over the years. We can connect you with the experts so you can acquire a savvy investment while the market is slow and affordable. It’s often as simple as ringing up Rentals.co director Al Inglis and asking what properties he’s seen advertised which would bring reliable investment return. Al always keeps his senses attuned to opportunities.