Capital gains tax is only fair

OPINION: I love property. I love it because of the immense power of leverage.

You put in, say, 20 per cent, the bank lends you 80 per cent, but you get to keep 100 per cent of the gains.

When it comes to generating investment returns, that’s powerful. In addition to that, what it costs you to make the 100 per cent – the weekly top-up you have to pay to cover the shortfall in rent vs outgoings, is tax deductible. So, if I have to put in $100 per week, I then get $30 back. As a tax expert and adviser to many clients, that is a beautiful thing.

SUPPLIED

Hannah McQueen: “It’s time these phenomenal gains were taxed. Not each year, but when you sell.”

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