How about every property sale is taxed 10 per cent? Photo / Ross Setford, File
Surely it's about time we stopped tinkering with the housing rules. The tax "loophole" isn't one if renting houses is your business. All businesses can deduct interest as an expense. The only long-term solution is to make profit from the sale of all property taxable.
We need to get over the sacred cow of the home we live in being exempt from tax if it increases in value while we own it.
A fixed rate of, say, 10 per cent, paid when properties are sold, would be much simpler to administer and might even give the Government enough revenue to build our much-needed infrastructure.
Time to bite the bullet and level the playing field.
James Archibald, Birkenhead.
Grant Robertson does not understand fundamental tax and business law. When he says that "interest tax deduction is a tax loophole that private householders do not receive" that is because private house homeowners are not running a business and cannot deduct any expenses of running their household.
A business that owns residential property is running a business just the same as a butcher, baker, candlestick maker. Expenses in a business that are incurred in deriving a taxable income are deductible and this new proposed legislation to disallow interest deduction but only for residential landlords does not comply with legal and tax legislation enshrined over hundreds of years.
To allow interest deductions for tax purposes for commercial landlords and any business except rental businesses is unethical, inequitable and favours commercial landlords who can pass on many costs in the case of net leases to their tenants.
Commercial landlords do not have to comply with Healthy homes legislation. They also obtain far higher returns on their properties than residential landlords.
Jon Moses, Epsom.
I fail to see how the moves that the Government has introduced to curb the housing market will have any effect whatsoever, except perhaps that landlords will increase their rents to cover their increased tax liability. Houses take too long to build, with shortages of trained builders and access to supplies severely curtailed, first-time buyers will still not be able to afford to buy into the market and existing buyers will carry on as before simply adding the tax on to the price as, doubtless, the person he is buying from will do.
The only way to solve New Zealand's housing problem is for the Government to be politically courageous and to be drastic: freeze house prices at the last sale price and equally freeze rents until the economy has recovered and salaries have caught up.
Gerald Payman, Mt Albert.
The court case of a Scout master, who, some years ago, abused several boys has shown us great examples of bravery, cowardice and injustice.
The abused man showed tremendous bravery by looking his abuser fairly and squarely in the eye while reading his impact statement. Many would not have the fortitude to do the same.
On the other hand, the abuser's absolute cowardice was obvious as he was the only person in court unnecessarily wearing a mask, thereby covering much of his face.
Then we have total injustice in the form of the pathetic sentence handed down by the judge and, in all probability, a much shorter prison term will be served.
Ian Harding is a very brave man who has suffered for years and will continue to do so. He deserves far better than the perpetrator going to prison for just over three years.
Janet Boyle, Ōrewa.
We are currently very short of qualified carpentry and related trade staff in New Zealand, exacerbating the housing crisis. It's about to get worse.
With the receding of the terrible floodwaters in New South Wales and Queensland, I predict there will be a similar receding of carpenters and other trades from New Zealand who will take the opportunity to head across the ditch to assist with the countless job opportunities that will be on offer.
The attraction will be better wages, lower cost of living, cheaper housing and a more attractive lifestyle.
It happened post the Brisbane floods of 2011 when countless trades groups were attracted to the city, many of whom never returned to New Zealand.
M. Brown, Hamilton East.
For all of this month, power prices on the spot market have been around 30c/kWh, which is three times the normal. Over the last few days prices have been in the region of 50c.
On Wednesday morning, prices were 70c/kWh because 700MW of wind turbines was generating only 3MW, 1250MW of gas-fired generation was generating only 300MW because it didn't have enough gas and the DC link was sending 500MW north. 500MW of coal-fired generation was reducing the rate of reduction of hydro storage. Hydro generators were reaping windfall profits.
If we had more gas, we would burning much less coal (that has twice the CO2 emissions of gas), and prices would be dramatically lower.
The more wind we add to the system, the more often this sort of thing will happen.
Unless something is done about gas supplies soon, domestic power prices will increase sharply and the risk of blackouts will increase. Poor people will suffer the most.
Bryan Leyland, Pt Chevalier.
When John Olesen (NZ Herald, March 24), sang the blues in this column, I joined his mournful lament. Not only was the hideous music inappropriately timed and hugely disruptive to the flow of the game, it cemented the complete lack of awareness of the Eden Park marketing department regarding its audience. Lame Blues supporters' pack (what was that flimsy booklet? And free KFC chips with our plastic VIP card, oh please); ridiculous new "chant" that nobody aged over 8 joins in; same old cold, congealed food; and, perhaps worst of all, where is the commentary on the game?
The scores are slow to appear and hard to read, the half-time entertainment is, oh, also lame. And before I am told you're sorry your efforts don't meet my expectations - read this loud and clear - it meets no one's expectations.
Red card, marketing department - on the bench.
Susie Hill, Westmere.
A spokesman for Renters United is reported as saying landlords raise rents "because they can". Superficially this is true, but so can every other person who provides goods or services. In reality, myriad factors go into making pricing decisions.
In Auckland, a major factor in rent increases has been the continued and substantial rises in council rates, water charges, insurance premiums, tradesmen's rates and building material costs. And now there are new regulatory requirements which will have a substantial effect on rents.
I do not believe that "because they can" is an accurate statement of the reality of the situation.
D Stewart, St Heliers
There was a time when we didn't have a housing market. We had stock markets, cattle markets and auction houses for art and antiques. The selling price of a house was advertised and the would-be buyers offered less. Bargaining finally arrived at something satisfactory to both buyer and seller.
Auctions later became the preferred way of house selling. Auctions are certainly legitimate but in contrast to trading at a fair and reasonable price they force hopeful would-be home owners to bid ever higher. A shortage of supply has enabled this system to proliferate — and what seller wouldn't want a better price? Our GDP looks good but economic activity in house trading doesn't produce anything but debt.
When the housing market collapses, like the stock market collapse of the Great Depression, the falsity will be shown. Not even this government is likely to ban auctions for this is a legitimate undertaking but moves to preserve us from our folly needed to be taken. Housing investors will complain but they can be grateful that they have had it so good for so long.
P. Belsham, Mt Albert
On housing
There would seem to be a reasonable case to introduce a stamp duty on property purchases during the next fiscal year. Patrick Robertson, Hobsonville.
On Fuatai
Congratulations to your columnist Teuila Fuatai on her courageous article (NZ Herald, March 24) on depression. It takes great courage to admit and discuss this subject which has affected so many thousands of people. Dr Harold Coop, Remuera.
On Opposition
Greg Keenan suggests (NZ Herald, March 24) National is ineffectual in Parliament. I do wonder if part of the issue is that one Trevor Mallard, in his role as Speaker, frequently filters or even blocks Opposition MPs from asking the hard questions? B. Watkin, Devonport.
On rugby
Interesting to see different peoples' reactions to the celebrating antics of Reiko Ioane, Sevu Reece, etc. In Fred Allen's coaching days they'd have spent a couple of weeks on the sideline. Dennis Ross, Glendowie.
On sentencing
Three years, seven months, imprisonment for the Dilworth predator. Yet his offending against vulnerable boys went longer than this, let alone the scars he left them. How does that work? Glenn Forsyth, Taupō.
On bubble
Having read C Bradley's letter and Mike Hosking's comments, and being aware of the desperate circumstances of Queenstown and Westland, it seems to me the government is holding the South Island to ransom for no good reason. Surely the South Island could be included in the Transtasman bubble, and thus provide the urgent relief, and indeed rescue, of tourism's plight without state assistance? Paul Huffam, Stanmore Bay
They allege the Crown ignored Treaty obligations by not engaging with them.