Stephen Knight

Now, the other thing that we were just talking off air about is the capital gains changes is not just for property.

This isn't just targeted towards investment properties.

This is businesses, this is shares, this is holiday homes, right?

The other thing is that in some cases, this rule could actually be beneficial and mean that you pay less tax.

So let's say you bought an asset, and this is a property podcast, so you bought a property, you held it for five years, and let's say inflation averaged at 5% and your property went up in value by 5%, you could then sell it

and not pay any capital gains tax at all because house prices didn't outpace inflation in that example.

But you would still get the benefit of having leverage on your property.

So there is a scenario where you could theoretically make some good gains and pay less tax.

But let's talk about the negative gearing change as well.

And interestingly enough, if you own a property in Australia...

and you bought it, say, two years ago, you still get to use the old negative gearing rule.

So there's going to be a bit of a two-tiered system.

Now, Andrew, most listeners to this show aren't Australian property investors.

They might just be a Kiwi living in the great town of Harwerda, thinking about growing a property portfolio.

So why should Kiwis even listen to this?

And there was a really interesting example that we were just talking about this week about a Kiwi who's living in Australia, thinking about buying a property back over here.

And then they pulled the brakes on that purchase.

Walk us through what happened.

And the other thing that's quite fascinating is

even if they purchased a property in New Zealand, held it for a couple of years, then moved back to New Zealand, according to their tax accountant, that would be considered deemed disposal when they leave Australia, which basically means that when they decide to move back here, then the Australian tax department would say, well, that's as if, or we're going to treat it as if you've sold that property.