NZ Herald 25 March 2006
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: 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.
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.
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.
Q&As: Man who has made $3 million from shares; How much risk for a 53-year-old?; How good is advice from banks?
Negative gearing may come back to haunt you. Many landlords say they don’t mind or even like to be negatively geared — making year-by-year cash losses on a mortgaged investment. But it never looked all that appealing to me. And recently I heard a rather compelling argument against it.
Q&As: 27-year-old overseas doesn’t need more than 4 rentals in NZ; Should more conservative 26-year-old get revolving credit mortgage?
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.