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> If you have built on the property and are getting a rental of 5%, you are now getting 4%. That is a 20% decrease in property valuation, ignoring expenses (whi
by em500 4y ago
> If you have built on the property and are getting a rental of 5%, you are now getting 4%. That is a 20% decrease in property valuation, ignoring expenses (which make the figures much much worse).
In developed countries the government takes around 30%-40% of your labor income if you work. In that sense taking 20% of capital income (rent, dividends, capital gains) is still on the low side.
- robocat 4y agoYour “capital income” sounds like revenue - flagrantly ignoring expenses. In New Zealand, income on a property is what you get after expenses, and then you are taxed on your income (I think profits-before-taxes and income almost mean the same thing in businesses). Apparently I just don’t understand what you are saying.