Legislation has recently been enacted in New Zealand pertaining to changes in interest deductibility and Brightline Rules for residential investment properties. The changes are also retrospective.

A special presentation prepared by Angela Larkin, Senior Accountant at Alliott NZ, based on real-life experience from buying off the plan. We recommend Angela's information to any clients for whom this may be valuable.

 

In an effort to control rising house prices, the NZ government has implemented tax changes in regard to residential investment properties.

The New Zealand Government has announced a $12.1billion business continuity package aimed at assisting businesses through the COVID-19 situation. The largest element of the package is the delivery of $5.1billion in wage subsidies to businesses and the delivery of support for workers needing to self-isolate, delivered through the Ministry of Social Development.

Reminder that if you rent out your home or other property for short term accommodation you may need to register for GST.

From the 2019-20 income year onward, new rules apply to deductions claimed for residential properties.

Agriculture Minister Damien O’Connor announced a new debt mediation scheme that will help farmers in financial distress deal with their lenders.

From 29 March 2018 the bright-line test for residential property has been extended from 2 years to 5 years.

NZ IRD highlight the steps to work out the type of repair and maintenance costs of the leaky building (as a rental property) and whether you can claim them as a deduction. 

We take a look at the IRD documentation requirements and how the rules may apply in unexpected situations as a result of the definition of “offshore RLWT” person".

There have been numerous webinars and newsletters about the new rules for taxing residential property sold within two years of acquisition, but there are some particular things to note. We sort the wheat from the chaff.

Auckland house sales jumped to an August record as a flood of new listings hit the market while average prices fell in the month, according to Barfoot & Thompson.

August can be a slow month for sales, but this year it was the third busiest sales month for 16 months. Prices will most likely increase modestly in coming months from where they are at present.

#helpingyoutradebetter

Statistics New Zealand reported more than $4 billion worth of activity was put in place in the three-month period - the most since records began.

Whilst it’s exciting times for construction and the trades servicing the sector, have you thought about how to future proof your business and take advantage of the upswing?

#helpingyoutradebetter

The main feature of this Bill is the proposed new objective bright-line test for land sales which will impose income tax on any gains from residential property acquired and disposed of within two years.  An exception is provided where the disposal is of a person’s “main home” as defined.  The bill essentially follows the proposal in the issues paper with some refinement based on submissions.

Finally the NZ Reserve Bank is lowering interest rates, just as it seems the US is about to start raising rates.  How does this affect a Kiwi investor?

In case you haven’t heard this is a summary of the government’s announcement on the crackdown of property speculators. We look at some frequently asked questions and the rules for residents vs non-residents.

Clients often ask me where in the world they should invest and the saying “Surf where the waves are big” sometimes springs to mind. If you want a big reward, you need to be where the action is.

So where is the investment action right now?  Where should you start to look?