Little wonder I rarely see eye to eye with Bernard Hickey, the person that lead with that rant soon after John Key addressed parliament.
And to rub salt into the wound Air New Zealand, a company that was propped up by government funds (taxpayer funds) places an advertisement within the article.
Very patriotic.
Interesting how those that say we would all be better off across the ditch are making the statements from within New Zealand. A little hypercritical don’t you think.
Then out comes the Goff “No bold plan at all” guess neither he nor Hickey actually listened to what was being said and simply faxed already prepared statements to the media. Then in fairness we don’t all see eye to eye do we. It’s such a pity we don’t all push from the same side as I am sure we would all benefit in the end rather than pushing against each other and getting nowhere.
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It was reported by the NZ Herald that Mr Goff went on to say the winners of National’s tax package will be the Prime Ministers best mates on their high income and the losers will be average New Zealanders.
Why is it we scold those that work hard to get ahead in life, those that in realty are the very people that contribute towards things such as public health, which they rarely use, public transport, the welfare system, I could go on but won’t. If Mr Goff can’t see that, I am sure his supporter’s wont.
As everyone knows I am an advocate for property investors and yes I can be a little one eyed at times but today Martin Evans, The President of the Property Investment Federation is in my sights.
This I feel, was the rant of the day and there were a number.
He is going to recommend to “his” organisation that investors stop maintaining their properties and put rents up as much as they can in retaliation to the government's intention to abolish depreciation.
I am serious, he was apparently quoted as saying that, as reported by the NZ Herald.
There are already far too many investors that don’t maintain their investment properties to expectable standards so I suppose a few more won’t make much of a difference. It will however benefit those that do look after their investment properties and in doing so those that are paying the mortgage.
Mum and Dad Investors, take no notice of this ranting, maintain your properties, look after your tenants and DO NOT ENTER INTO PROPERTY INVESTMENT solely for the deductions such as depreciation and tax right offs and all should go to plan.
Investors are now saying, as they based everything on what they could skim off the top, they can no longer afford their investments because they have to make money, (just like any other business) as the cream is about to evaporate.
I have been telling investors for years, base your figures on income and expenditure and treat deprecation and the tax breaks as icing on the cake as one day the government will wake up and you will be left with only the cake. Guess that day has finally arrived.
I must say I do find it a little hard to understand how a building doesn’t depreciate in value and would have thought the tax right off against personal income would be at the forefront. Hold that thought, it’s not over yet. As an investor, I don’t really have a problem with that so long as the business can be run on the same lines as a limited liability company. Really, it is just back to square one.
Personally I thought that we property investors were in for a thrashing, but if things go ahead as I think they will, it will tip over a few speculative investors that opted for capital gain rather than debt reduction and lived off the cream, but for those that took my advice, it will be business as usual.
Now that the cards are on the table keep at it. Invest in a property and lease it back to the government with a guaranteed rental for ten years.
Did you really think they were going to behead those that are currently buying new housing to lease to the government and remember; in this way it is win, win.
By investing in purpose built property for Housing New Zealand it doesn’t affect the property market in any way, creates employment, and houses those that would otherwise be living in substandard accommodation.
Before gritting your teeth and aiming your spear, read John Key's speech (with and open mind) and think for a while. You may just decide to put the spear away. Don’t just get on the band wagon with others that have their own axe to grind.
Brian Dalley is a leading Property Consultant | former NZMBA Mortgage Broker, and Real Estate Agent.
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