What will be the economic driver to buy a house under TOP1?
In purchasing a house I have already invested more than rent for the same service, so, under TOP1 I must be doing it for non economic reasons. I can't see why anyone would buy houses anymore and landlords wouldn't want to own houses either. So under your Asset Tax why would anyone buy a house - except for non financial reasons? And if you buy a house for non financial reasons, what is the rationale for suddenly classifying it as a financial asset?
Official response from Gareth Morgan completed
People will buy a house for accommodation reasons not an investment and that's the way it should be.
Do you like this suggestion?
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Gareth Morgan responded with completed 2016-12-12 10:23:39 +1300
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Kate Tyson followed this page 2016-12-12 00:27:21 +1300 -
Tristan Kiddie tagged this with i have the same question 2016-12-10 14:44:56 +1300
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Andrew Turner followed this page 2016-12-10 01:25:02 +1300
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Robert Murray commented 2016-12-09 23:47:54 +1300Actually you’re right, since its a non performing asset tax, and rental is performing, you wouldn’t have to pay the tax: if you don’t mind paying the (to be reduced) normal income tax on that rent, you might even be better off than you are as a landlord at present.
Now I don’t understand how that will make houses more affordable or encourage people to buy homes. -
Tim O'Donnell commented 2016-12-09 23:19:28 +1300Why would I not be a landlord? I charge rent that covers my costs including tax. I’d likely make sure I was up to my eyeballs in debt so I paid less tax but I should make a good living.
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Oliver Krollmann followed this page 2016-12-09 20:15:01 +1300
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