Andrew Nicholl

So I really find it interesting.

I was talking to someone just the other day, an investor that's had a rough time because she's invested in Wellington and invested in Auckland, and both of those markets are down.

And she said, is it ever going to get better?

And I was like, well...

There's no guarantee of anything, but let's face it.

These things tend to average out over time.

And the fact that you've had some really rough times probably means that if it does average out again at a similar rate or even a similar rate minus a bit of a margin, because things have changed with DTIs and LVR restrictions, you're still going to probably get some really good growth years so that it does even out.

I know.

I think you did your P. Your P-R-O-T-A-Y.

Taken from the tune of our childhood.

And I'm Andrew Nicholl.

They've had a capital gains tax and the way it works is if you hold a property for more than 12 months and then you sell it, then you pay the normal tax rate that you pay, your income tax rate, on half of the gain.

So say you sold a property and made $200,000, then half of that, $100,000, that's going to be at your tax rate.

Now your tax rate could be 47%.

So if that's the case, you're going to pay $47,000 on your $200,000 profit, which means the effective rate that you're paying on that profit is 23.5%.

Now, there are two new rules from the 1st of July 27.

First, there is no 50% discount.

You're going to pay tax on the whole profit, not half of it, the whole profit.

But the interesting thing is it's inflation adjusted.

So I'll talk to you about how that works in a second.