WTF "spare cash" to buy a house.. Jeez

flightless... why would you be "selling the properties" when you say yourself in the same sentence that "rents will skyrocket". I would hold on, and take the increased rent (that the tenants will be able to afford because of lower taxes) in lieu of the tax dodges? Where's the problem?

I am a teacher - I have used 'spare cash' to buy rental properties. Spare cash came from skimping on other things. I pay tax on my properties. What I see happening is my selling the properties and the tenants scrambling to find a new rental home but there will be a shortage and rents will skyrocket. I will invest in the HK property market instead which has a better % gain than NZ anyhow. I will no longer pay this tax to the govt and tenants will actually suffer. I have no superan - the property is it! I'm trying to look after myself rather than rely on the govt. Give the small time invester a break!

I support lowering personal taxation and increasing GST because then there are fewer loop holes - if you buy stuff you pay. I wonder if there could be some items that have a lower GST milk, bread, medical services. I remember a friend who paid for heart surgery themselves. They could have waited and gone public totally funded by the tax payer but they paid for it themselves but then also got smacked with a huge GST - having saved the govt thousands they then had to actually pay the govt.

I like how people in the comments go after each other- how about we take the politicians to task. John Key should crack down on his MP's trips from last year, take away their housing and travel allowances and perks after they leave, and then have their salaries start at 50,000 like people who matter and contribute to society like nurses, teachers, ambulance officers, and firemen. Wake Up NZ!!!!

until the Government crack down in investment companies not being liable if they loose their investors money, why would you expect people to invest their life savings into it?

The chain effects of increasing GST is definitely undesirable. However, it's fair and equitable to close the loopholes of investment properties where the rich and shameless enjoy life at the expense of the hardworking lot.

Kiwi's have had the wool pulled over their eyes investing in property with the associated LAQC setup. Quite often the returns gained from this type of investment would be surpassed by investing in a handful of shares for the same period. Don’t get me wrong. LAQCs have their place in NZ and they are a completely legitimate form of structuring your tax position to enhance your return. The only problem here is that they have been overused by misinformed NZers to invest in property. This form of investment is not productive for NZs economy and John Key would be making the right move to shift the tax burden onto this type of investment vehicle. As to your comment Larn #46, if the Indian man who owns your property lives overseas. He cannot take advantage of the LAQC structure anyway. You are also in the position where you can pick and choose where you want to live. That is the benefit of renting. If you don’t like it, move out. Farmers have been riding our coat tails for decades. Nothing is ever going to change here. I don’t have too much of a problem with my taxes going to them. I’d rather that than any of it going into feeding, clothing and housing the thousands of criminals in prison.

Yeah, LAQC's may have their place but in reality you have to loose money overall to get a tax return, all the while speculating that your property value may or may not go up in the next few years. The NZ economy is just one big housing market and makes it bloody hard for Joe Average to own a house. I used to own a LAQC and while each tax return makes you smile, you gotta remember that it represents 39% of the money you lost that year in return for a gain (or loss) you cant measure until you sell.

Kevin #45: FYI not everyone has a "traditional" superannuation, some choose to invest in properties and the like and see that as their superannuation. And what's wrong with supplementing your superannuation with other investments because there is no guarantee Kiwisaver or the like will be enough when it comes time to retire.

Smoot #42

I am in a role simlair to yourself and agree with your comments. Tax is a burdan that everyone should share as we all benifit from it. If you belive it should be paid on an equal percentage (flat rate) or by those who can best afford (varible tax rates) is a polictical view which each person holds. I only have the following comments:

1, Make sure that the top tax rate equals the company and trusts (this can include increasing the company or trusts). This will stop tax structures to avoid tax. 2, Have a broad base, including taxing capital gains. This could be worked through land ownership office. This will ensure ever person contributes from the activities they do. 3, NEVER, never have GST on somethings but not others. This is a backward step and the cost of compliance will only produce more grey areas of the law.

Thanks