Forum Replies Created
Mini,
Great post, you really are our Kiwi expert.[
]Luanne, my understanding is that you pay tax in NZ on the earnings there, then also declare the earnings in Australia, but with an overseas tax credit for the tax already paid in NZ.So you aren’t actually taxed twice. I think you could negatively gear against other NZ income, but not against Australian income. But as most of the IPs being discussed are positive anyway it shouldn’t be an issue.
Note: I’m not an accountant, you would need to talk to one.Rod.
I think it’s a bit simplistic just to blame property investors for the boom. But it’s not unusual for the mass media to take a simplistic approach. There are many different factors which have contributed to the boom: fhog, low interest rates, poor stock market returns, easier finance (rams, aussie, wizard etc).
As to whether there will be a bust, my view (and that’s all it is) is that some areas and sectors will certainly crash. But most areas will just see a slow down, with a slight retreat from the peak and then a flattening for 2-3 years. When will this happen – no idea! It’s possible that it’s already occurring in some sectors, but others may keep growing for another couple of years.Be careful out there.[
]Rod.
]
