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Hi Gareth,

Hi Gareth,

I need to see the numbers. My wife and I are 71 and 70. We live in our mortgage free home which has current market value is of $380,000 $400,000. We have no other property. Our sole income is NZ super. Due to the fact that we don't owe anybody for anything means that we can manage OK. Any increased outgoings could not be supported without significant sacrifices.How would the figures stack up under your scheme?

Official response from completed

Your biggest issue is cashflow. Under our plan you would write an IOU to the IRD for the tax that you need to pay each year. This will be taken by the IRD when the property changes hands next or out of your estate when you pass. So no cash flow issues

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    • Gareth Morgan
      responded with completed 2016-12-12 10:30:22 +1300
    • Tristan Kiddie
      commented 2016-12-10 08:29:39 +1300
      This is a topic that Gareth and his team seem to be blatantly ignoring. One can only assume their intention is to effectively minimize what can be handed on generationally. Which will actually cement the people at the top in their position.
    • Tristan Kiddie
      tagged this with i have the same question 2016-12-10 08:29:39 +1300
    • Luke Malcolm
      commented 2016-12-09 23:59:41 +1300
      I’m going to go out on a limb here (without having seen the numbers) and say that the tax generated by the equity increase in your home would fall within the tax-free threshold and that you wouldn’t see any changes to your outgoings. In fact, you’d probably see less outgoings due to lower taxes elsewhere. Unless this was the case, this policy is unlikely to fly.

      Someone with more info, feel free to correct me.
    • Tim O'Donnell
      commented 2016-12-09 23:45:33 +1300
      From what I’ve read your equity in your property would slowly be eroded as you paid off your tax bill to the IRD. If you had family you wanted to leave your property to they would need to pay back the debt just like a mortgage if they wanted to keep it (or sell it, repay the debt & keep the profit). Otherwise your house would be taken & sold by the IRD to cover your debt (just like a bank would).
    • Oliver Krollmann
      followed this page 2016-12-09 20:18:48 +1300
    • Iain Bremner
      tagged this with i have the same question 2016-12-09 18:37:45 +1300
    • nik james
      published this page in Ask a question about policy #1 2016-12-09 18:19:02 +1300