Property investors are tax disadvantaged
Monday Aug 4, 2014
Andrew Bruce, President Auckland Property Investors Assoc.
Property investors are disadvantaged by the NZ tax system, says Andrew Bruce.
I recently wrote an article titled ‘Why are house prices so high”
The key messages can be summarised as:
• If the costs to develop a house or section rise/are high, then the price of property will have to increase to cover these costs.
• This can restrict the supply until such time as price increases make it economically viable to develop more properties.
This is the basics of supply and demand.
Leading on from this is another misconception:
people still believe property investors are tax advantaged and that investors, developers, traders and speculators aren’t taxed.
Before I cover the tax issues we need to understand the difference from a tax perceptive between a:
• property investor
• property speculator/trader and
• property developer
Read the rest here: