NZ Herald 31 March 2007
Q&As: Have you got what it takes to borrow to invest in a share fund?; How frequent traders in international shares will be taxed under the new rules; How Inland Revenue might catch property traders.
Q&As: Have you got what it takes to borrow to invest in a share fund?; How frequent traders in international shares will be taxed under the new rules; How Inland Revenue might catch property traders.
Property backers underplay risk. Property backers seem to go in for hyperbole. Two examples from readers’ letters: “Shares are not and have never been as lucrative as property…. We now know why the richest people in the world and in NZ are property investors.”; “The average person can quietly work themselves into a residential property portfolio worth several million dollars with a decade or two of judicious acquisitions…. People putting a portion of their income aside to buy into share funds are left in the dust.”
Stuff and happiness: Buying things you don’t really need. Also in this issue: From the Mailbox — Should a young man buy himself a house?
Readers rally to back houses. It always happens. Whenever I write about investing in houses and shares in the same column, people say I’m unfairly negative about houses. In my final column last year, I wrote that the rise in house prices over the previous year was slower than the rise in: New Zealand shares, hedged overseas shares and unhedged overseas shares, all including dividends. That surprised me, and I thought it might surprise you.
Can you get rich quick?: Only by taking big risks. Also in this issue: From the Mailbox — Spending in retirement.
Q&As: Woman in Australian shouldn’t sell her house here; Is the house price boom like the great tulip bulb bubble?; Couple disagree over rental property v shares.
Borrowing is not all bad — it depends why we borrow. Reserve Bank Governor Alan Bollard has been telling us off because we keep raising our mortgage debt. But, from the individual’s point of view, how bad is that? It depends on why we borrow.
Q&As: The pros and cons of self employment and income splitting; Comparing shares with property is tricky; How movements in the dollar affect investment in international share funds.
Q&As: Is geared rental property right for everyone?; Perhaps the woman last week should wait befoe buying a house.
The inherent differences between property and share investments. There’s a fundamental difference between investing in shares and property, a reader says in an email. “With a stock there is always the risk of bankruptcy of the entity you invest in, and the investment you make becoming worthless,” he writes.