We have released episode 2 of our series on New Zealand property, as Joe Wilkes, Property Expert continues his tour of Auckland’s new suburbs. Is there really a “property shortage”, or is something else afoot?
And this is not just an Auckland “thing!”
– New Zealand (NZ) is working to get rid of/reducing the benefits of Negative Gearing (NG) ? Really ? Then I don’t want to be a NZ government official/politician in the next few years. Much too dangerous, might get me killed. Although getting rid of NG also means that renting or buying a house will become more affordable.
– Although rising unemployment will ultimately reduce the “financial damage” done by NG, bit by bit, to the budget of the “good folks” in Canberra.
– Contrary to common belief, NG is a subsidy from the taxpayer, for everyone who benefits from developing, building, financing, selling and managing property. And that subsidy comes out of the pocket of the investor through taxation. Are people so blind that they can’t see that ?
– Thanks to NG, the bank can issue a larger mortgage and the larger the loan the higher the amount of interest the bank receives.