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Articles by Matthew Gilligan

Matthew Gilligan

Sunday Rant...

Labour intend to ring fence property losses to future property income. This will send thousands of investors broke fast. Take investors tax refunds away, property values crash. This is well documented overseas. Sweden property values dropped 35% when they ring fenced losses and the following govt reversed the policy, with values immediately there after recovering.

ring fence property loses

Accountants would get a mountain of pre change planning work and we would have years of work to do.  While lots of New Zealanders will go broke with ring fenced losses and inolvency revenue will grow to. I'm not going to sit by and have to charge my clients for work that is going to make them go broke.  Labour are you thinking this through?

I would not want to be a banker though with losses ring fenced...will make an already difficult environment treacherous and property investors would want to be selling sooner than later.

This really is playing with fire by labour with little short term upside, given the global backdrop of deleveraging, and capital growth prospects in NZ with higher interest rates on their way, - next year or sooner, and potential for major problems globally as Asia and Aussie come off the boil and Europe and the USA choke on their indebtedness. This must put pressure on interbank lending rates within 2 years, especially if we see sovereign default in the PIIGS or USA.

The massive bureaucracy they built and squandered our money on, the buy back of kiwi rail,  now CGT, to name but a few blunders.

Back on Tax

If you want instant cash flow targeted on property - it's simple. Introduce stamp duty like the rest of the world. Instant 3- 5% tax on the turnover in the property sector dampening speculation and raising major govt revenue, without the complexity of CGT.

If you are worried about any of these issues I have mentioned email or come and see me.

Matthew Gilligan
© Gilligan Rowe & Associates LP

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
I can't think of anything I didn't like about Property School. I especially liked listening to Matthew Gilligans examples. - Anon, April 2018

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Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.

We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.

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