What we don’t know CAN hurt us. One of the first things journalists are taught is to make the first sentence of an article a “grabber”, something that will perhaps surprise readers and make them read on. So this column is officially starting now: Every New Zealander over 65 gets NZ Super, no matter how rich they are.
Q&As: Stick with share fund investments; Is it wise to depreciate if you’re selling your rental quite soon?; Tax treatment of the expenses of rebuilding leaky rental property.
Q&As: Man panicked and bailed out of share fund. No!; Real Estate Institute denies that it’s hard to buy a house in NZ.
The last word (hopefully) on taxation of rentals. Reader feedback keeps coming about the taxation of rental properties. So I’ve decided to go to the horse’s mouth, Inland Revenue. But first, a typical email on the subject…
Q&As: A landlord’s nightmare; Credit cards v eftpos; Optimism, pessismism and oil prices.
Q&As: Eftpos v credit cards. And bank fees; The investment outlook is gloomy, so save!; Wealth doesn’t make you happy.
Let’s keep that chewing gum money. Please forgive us, Dr Cullen, and don’t take away our chewing gum tax cut! I know some of us have been scathing about it. As you said recently, “I have noted that people have said they don’t really think it’s worth having. If people say that, then of course they may find their wish has been granted. Be careful what you ask for, or you may get it.”
Q&As: Is compounding interest over-rated?; Credit cards v eftpos; How long is long-term? Returns on different assets.
Q&As: Couple reluctant to sell their shares in a takeover; Owning 19 shares is good, but it’s too soon to judge performance.
Views on negative gearing are poles apart. Negative gearing is like the death penalty. People feel strongly both ways about it, judging by reactions to my last column. In that column, I wrote that negative gearing — which occurs when a landlord makes year-by-year cash losses on a mortgaged property — is becoming more common. This is mainly because rents haven’t risen nearly as fast as house prices.