Not too long ago I wrote an article about taking one of my houses from long term rental to Airbnb.
After the article was picked up by the press I committed a cardinal sin….I read through the comment section on stuff.
It seems that I am the root of all evil in the world, for taking a rental property out of the housing stock available in a housing crisis.
Hold on a minute: I own a few houses and I only live in one of them at a time. All the rest are rented to people who need somewhere to live.
I know what some of you are thinking. “This is why we need a Capital Gains Tax”.
Ok maybe that wasn’t what you were thinking, but every time I have a property related article in the press it’s the comment made within a few moments of the article being posted.
Here is my reply:
1. A CGT is not the fix all you think it is.
Houses will still be expensive. Some people will continue to be wealthy and some people will continue to struggle.
2. I rent houses to people who need somewhere to live. I can do this because I worked hard for years to build up capital. I am going to keep doing it because I really enjoy it. It also makes me a good living.
Sometime people ask me “How can you sleep at night” to which I normally reply “On my back and then normally my side”
3. I teach other people how to buy houses too. I am not holding all the property to myself and I do not hold keep my knowledge to myself.
4. If New Zealand had a capital gains tax – houses would cost more to own and more to rent.
5. The government can’t supply all the social housing we need – see the article below. They are buying hotels!!!
6. Yes I do pay tax.
7. If restrictions worked to fix the supply and demand issue, why didn’t banning offshore buyers make any difference at all?
8. Governments love a good tax – why wouldn’t they bring in a CGT if they thought it would work? (Discounting the fact that it is universally considered as political suicide)
As a lifelong property investor I am sick of being the bad guy.
People invest in the share market making all sorts of unethical products (Guns, Plastics, coal powered electricity). Should we tax those we don’t like very much?
As for me, I provide housing that is clean, dry and safe for those that want it. I’m going to keep doing it.
Sorry rant over…