When I read the articles written about how Alan Bollard is working out an evil plan to stop people investing in property. I have trouble trying to understand his reasoning and the more I try it makes my blood boil! I wonder if he actually realizes what investors do for the country and how they are effetely saving the country money and providing opportinities.
Firstly, with consumer dept at an all time high, most people are not in a financial position to purchase their own property. It is also the choice of many people to rent due to frequent relocation between towns for study or work. So investors are therefore providing more people than ever before with a roof over their heads. The government isn’t in a position to provide 30 – 40 percent of the population with accommodation therefore someone has to do it and it is those who have made good financial decisions and invested in property.
Secondly, many of those with investment properties have them to help their children get a better education. This country needs their citizens to be educated and those who are will in the future take over the jobs of finance minister and prime minister along with all the other jobs which our country needs to survive. Although the country provides student loans, that debt will continue to grow over time and with investors paying for their children’s education with will essentially save the country thousands of dollars and allow the children of this country to get a better education as they will be able to afford it.
Another point is that investors also have properties to pay for their retirement. |
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I must say that I know of many investors who have retired at an earlier age due to their success with investing which therefore provides jobs for other New Zealanders. The money achieved due to the capital gains of the property are generally enough to provide retirees with enough funds to have a comfortable retirement. That saves the government $12,000 per pensioner per year.
Many investors own property to provide them with a life style. Having property ensures that many investors are able to pay cash for items which they purchase, reducing the level of consumer debt, and investors, if they manage their portfolios correctly are able to reduce mortgage debt levels. That’s got to be a good thing!
I feel that property investors shouldn’t be punished for making good financial decisions for using common sense to secure a financial secure future for themselves and their families.
If anything we should be rewarded for it. We should be rewarded for it by getting reduced mortgage interest rates, higher tax relief for income tax and even a grant for providing housing for lower or middle class families who are unable to save for a mortgage for themselves. The list of benefits could go on and on.
I don’t believe that by installing the above ideas that it will provide a flood of investment properties within the market because having a financially secure future isn’t for every one. Many people just aren’t interested in helping themselves, and do expect the government to do it, after all isn’t that what every one pays taxes for?
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