New Zealand Tax Changes

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So finally yesterday we got some clarification on the proposed tax changes.  It was interesting that basically the government is doing almost nothing. The gives and the takes simply cancel each other out, except GST of course which is a license to print money.

Overall the bottom line is that these tax changes will

A:  Make the poor even poorer, widening the gap between the haves and the have nots and increasing the trend of declining home ownership.

B:  Significantly increase the disposable income of high income earners giving them more cashflow to invest

C:  Drive up rents nationwide as landlords seek to recover the depreciation reductions, assuming they happen

So I couldn’t be happier.  Anything we buy that is cashflow neutral pretax is unaffected by any of the changes and we can buy that all over the country right now.  And rents are going to increase way faster than inflation so our yields will increase.

So I’ve been saying it for 6 months but it is now official. 2010 is THE year of the Property Investor.  Commercial is being hammered with vacancies but residential is going to make a killing.

You WILL look back and wish you had done something if you don’t take control of your financial future today.

Long term we have a hazier picture as the baby boomers start to die off so the window is NOW!!

You couldn’t wish for a better raft of favourable conditions.

Economy in tatters, motivated vendors all over the place, uneducated investors spooked and ability to buy no money down, cash positive with rental yields almost guaranteed to increase rapidly.

I’ve got to stop now it is just too exciting!!

Stay Inspired and Stay Safe ~ Dean Letfus

The Ethical Investor

PS: Don’t forget to join me in CHCH and Auckland for the propertygurus launch. An entire weekend of top shelf education for under fifty bucks!! GRAB A GURU