I retired from personal blogging in July 2008.
But you can find me over at http://blog.xero.com.
Spent a bit of time with Andy Lark yesterday. Andy said something that really got me thinking on NZ’s addiction to investment in housing.
Andy is a passionate supporter of New Zealand tech and also has a global perspective. He therefore sees clearly some of the macro economic factors that may discourage NZ business. A bite sized example that’s easy to understand is the following observation:
Having no capital gains tax in housing forces investment into the housing sector. But that is at the expense of investment into small businesses.
So while no capital gains tax in for housing investments at an individual level seems appealing, at the macro level it’s holding us back.
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