Certainty for what?

Posted on 22-05-2010 18:42 | By SpeakUp

Well, Max, you gotta say that. Of course the market will provide you with confidence For now. Never mind the many first home-buyers who will miss out. Tough luck. People like real estate agents, who feed of productivity of others by dealing and wheeling property, think that they can maintain their frothy existence on the swell of commerce. However, times are a-changing. And that change is not ameliorated by pretentious statements. Shall we check reality? While we will see generally a massive inflation, we will see DEflation of property prices (we already do). Paradoxically, the property bubble and perpetual debt on massive mortgages remain in place, coupled with the precarious situation this debt places NZ into. Real estate agents were the kingpins of this scam. Now, the market exposes the property ponzi scheme for what it is. For now it s business is as usual for parasite schemes, with plenty of loopholes: The 5% gap between company rate (28%) and top tax rate (33%) will still cause tax avoidance. Although not anymore through an LAQC (=Loss Attributing Qualifying Company) a rental loss in your own name, or a partnership is still tax deductible. Mind you, the LAQC changes don t hit till April 1st with plenty of time to scam. Property renovations are tax deductible if described as structural . Or, just buy property in your own name, or via partnerships with high debt and the property loss offset still works, never mind that in that way increased overall debt is encouraged. If you have a building with a lifespan of less than 50 years you can get a ruling from the IRD that allows you to continue to claim depreciation. Certainty...get a haircut and get a new job.