In response to T McLeod, (Letters, February 8). It is very commendable that she was able to work three jobs on minimum wage to give herself the opportunity to purchase two homes in her early 20s. Based on the minimum wage quoted, I assume this was in the mid 80s.
At this time, the average home was worth 3.4 times the average yearly salary, compared to today when the average home is worth 7.5 times the average salary. She mentioned the bright-line/capital gains policy, but she did not mention negative gearing, which allows property speculators to claim a loss on their property investment, reducing their tax bill, only to sell a property in two years and one day in order to make a tax free gain.
She also said that "property speculators cannot be blamed for the homeless". She is absolutely right. Much in the same way as American tech billionaire Peter Thiel has taken advantage of New Zealand government policy for personal gain, I would never blame property speculators for taking advantage of government policy for personal gain. As the old adage goes, "you have to make hay while the sun shines".
My issue is with the policy itself, or the lack thereof, as I said in my letter, the policy is lacking "a tax policy which would encourage investment in productive sectors". A policy which would, for example, encourage people to invest in Kiwi businesses which would create jobs and communities, instead of current policies which encourage concentration of wealth and property in the hands of the few.
RYAN GRAY
Rotorua
