Politics 🗳️ NZ Politics

[tyrael]

And making property less favourable just chokes supply and makes people not invest in anything.

You actually have to business positive and worthwhile.

Giving people tax incentives for rental mortgage means more investment in property.

 

[MaybeTop8]

Corrupt

Fisheries Minister Shane Jones overrode official advice for fines related to leaking fishing boat footage

Documents reveal the minister was told the proposed maximum fine, five times a Privacy Act breach penalty, was "unreasonable".

www.rnz.co.nz

 

[wizard of Tauranga]

No it doesn’t, again this statement completely ignores the 1940s to the 1980s.

Penalising homeownership reduces supply, moving incentives to businesses does not.
The reason being is homeownership is not solely driven by return on capital. The human need for shelter already provides a base demand.

People are already motivated to allocate time and resources into obtaining shelter. So what needs to be done is make it more attractive for people to allocate excess capital into something other than property.

Even though people must have housing (although I could counter we just over crowd and increase homelessness when supply doesn’t meet demand), if you ram disincentives and add cost, the product just becomes more expensive for the same house to be built.

 

[wizard of Tauranga]

Giving people tax incentives for rental mortgage means more investment in property.

I would counter rental properties managed as a business normally pay a higher interest rate than you and me home owners.

And the issue is business lending painful and a massive disincentive having to jump through hoops. There’s a reason many leverage their private house to fund a business.

 

[MrFrankWhite]

Even though people must have housing (although I could counter we just over crowd and increase homelessness when supply doesn’t meet demand), if you ram disincentives and add cost, the product just becomes more expensive for the same house to be built.

Again, incentivising business investment is not penalising homeownership. Plus due to risk profiles, there will still be people diversifying into property.

If you ascribe overcrowding and homelessness to a lack of supply, what do you think will happen to price when you reduce demand?

As for "ram disincentives and add cost" these are conversations separate to the ones we are having. If I remove CGT from start up companies, what "disincentives and costs" are added to the housing market?

 

[tyrael]

I would counter rental properties managed as a business normally pay a higher interest rate than you and me home owners.

And the issue is business lending painful and a massive disincentive having to jump through hoops. There’s a reason many leverage their private house to fund a business.

Sorry I didn't mean businesses, I mean mortgages on a house.