Normally I avoid getting into politics but it can’t be ignored in the present market especially as the heat and light generated by a rising market has become a major topic of discussion.
This is election year and for better or for worse the next six months will be filled with rhetoric. accusations, promises, scandals and exaggerations.
This will have a destabilising effect on the market the closer the elections come so cool head are needed. I have been through at least 20 such elections as I recall and it’s always the same. Who ever gets into Parliament immediately becomes sober, serious and conservative and all the promises, threats and accusations drift away or are watered down.
So it will be business as usual for experienced investors and may indeed, create bargains for the canny as the naive panic and rush to the exists
The latest attempt to destabilise the market comes from the Left Wing naturally enough.
It seems hard to imagine that people of what ever political bent, would vote for more taxes but who knows?
Labour wants to apply a Capital gains tax not only if you trade in property ( which exists already) but also on the sale of your business, your farm, your share portfolio, the part of your house you use for business, your family inheritance and also your bach.
Be careful what you wish for.
Labour would slap capital gains tax on property speculators
Sunday April 13, 2014 ONE News
A Labour-led government would impose a capital gains tax of 15% on realised gains from investment property, party leader David Cunliffe has announced.
Mr Cunliffe told TVNZ’s Q A programme it’s ‘lunacy’ that property speculators get tax-free capital gain.
He says the family home would be exempt from the tax.
‘I’m comfortable with that because speculators are driving this market,” he said.