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NZ Property Investor March 2019

The New Zealand Property investor magazine provides readers with information you can use to successfully invest in residential property. You can learn from the experts, read the stories of your fellow investors and keep up to date with the latest house prices and rental statistics.

New Zealand
NZ Property Investor Magazine Ltd
12 Issues

in this issue

2 min
navigating uncertain times

Tax is not usually a topic that inspires excitement – yet it has been of late. As the country waited for the public release of the Tax Working Group’s final report, anticipation built and pundits’ opinions on what it could mean flowed thick and fast. But the reality is that it’s not certain if the TWG’s central recommendations will be adopted by the Government or, if they are, what form they might take. Nor is their future certain even if they do make it into law. The National Party insists it will repeal a capital gains tax if one is introduced, for example. What this means for investors is yet more uncertainty. And, as we’ve written about before, it is this that is weighing most heavily on many investors. It is, after…

3 min
legislative changes and the impact on property investing

Just as with technology, property investing has come a long way in the past 20 years. As it has grown from a largely enthusiastic collection of individual investors leaping into uncharted waters, to a more sophisticated investors applying sounder scrutiny; so legislation has tracked not that far behind. Whilst up until now these changes have focused on the amenity aspects of the safety and health of the property. The next few years will likely see a greater focus from legislators on the financial incentives. The very real prospect of the tax deductibility for individuals being withdrawn and potentially a capital gains tax. There’s no getting away from the fact that the current government’s focus is to level the playing field of property investment vs. other investments. These changes reflect a greater appreciation…

1 min
new airbnb tax rules

Just what short-term rental accommodation providers should pay has long been a fraught issue but IRD say they want to make it less confusing. IRD director public rulings Susan Price says if someone gets money from renting out their house, a room, holiday home or a sleep-out it’s income – and they have to file a tax return. “People renting out a room in their home can claim costs like advertising and a proportion of the expenses for the time the space is rented including things like rates, insurance and cleaning.” What IRD is proposing is that hosts, who rent their space out for up to 100 days each year, could claim a standard, nightly amount as costs. The proposed amount is $50 a night if the host is the home owner and $45…

1 min
kpmg predicts mortgage rates rise

New Zealand’s banks made a bumper $5.77 billion profit last year but KPMG’s head of banking and finance, John Kensington, says the capital rules pose the “biggest threat” to bank profitability. This could spell bad news for Kiwi borrowers as banks will either reduce their loan books or inject extra cash to meet the Reserve Bank’s demands, he says. “The latter option is likely to force a hike in mortgage rates and a cut in term deposits but, under both scenarios, there’s not the same level of freedom in terms of dishing out credit. Kensington believes the capital proposals, coupled with pressure from the Royal Commission and New Zealand regulators, will mean tighter credit conditions for borrowers in the years to come. “If you’re an investor with a second or third property, and want…

2 min
cgt war begins

As expected, the TWG’s report recommends that a capital gains tax should be introduced – but opposition to this proposal is already running hot. Already, ACT leader David Seymour has launched an active campaign against the introduction of a capital gains tax. He says a capital gains tax is not just about money and New Zealanders’ attitude towards achievement and success. “It’s really about whether your efforts make a difference and your choices are meaningful… A capital gains tax is a proposal to idolise envy and celebrate mediocrity.” A capital gains tax is an “envy tax” and ACT will be fighting any such tax vigorously and aims to awaken opposition based on values of meritocracy and achievement, Seymour says. ACT’s campaign involves a new website, a series of videos and a petition opposing the introduction…

2 min
don’t overlook smoke alarms

It’s well-known that smoke alarms are a major weapon in the battle to minimise the damage from house fires. Fire and Emergency NZ has been pushing them for many years and, since changes to the Residential Tenancies Act came into force in 2016, they must be installed in rental properties. Landlords have responsibility for ensuring there are working smoke alarms in their properties, and that they are in the right places. The Ministry of Business, Innovation and Employment (MBIE) has been vigilant in trying to get that message across to landlords. Yet it seems that some landlords still don’t get it. Last year the Tenancy Tribunal handed out a $2,000 fine to an Auckland landlord for failing to install a smoke alarm in his run-down rental property and MBIE issued a warning…