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ASSOCIATED PERSONS TRAPS - PART 2

By Matthew Gilligan on November 20th, 2019.

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This month’s article is a continuation of last month’s on associated persons “traps”. Last month I highlighted two traps that can catch the unwary when moving property between associated entities. This month I have another two traps that readers should be aware of. 


Trap 3 – Tainting for Life
Friends, Jesse and Skylar, are 50% shareholders in a property development company called...

 

ASSOCIATED PERSONS TRAPS - PART 1

By Matthew Gilligan on November 8th, 2019.

This blog is Part 1 of 2 on traps that arise when land transactions involve “associated persons”. By way of background, both the Income Tax Act and the Goods and Services Tax Act have definitions of associated persons and special rules that apply to transactions between associates. 

Property dealers, developers and investors are often party to transactions with associated persons (e.g. restructuring ownership of existing property). 

 

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5 Common Mortgage Mistakes

By Ryan Smuts on October 31st, 2019.

As mortgage advisers we often see clients in situations where they have gotten themselves into debt and aren’t always managing things in the most effective ways, and this includes first-home buyers and also property investors.

 

The most common mortgage mistakes we see are as follows:
 

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Interest Rate Update - October 2019

By Kris Pedersen on October 22nd, 2019.

It has been another month of rate competition with arguably the largest attention going to Kiwisaver provider Simplicity’s entry into the mortgage industry with a market leading 2.95% rate. What was of particular interest with this was that unlike other leading rates which were fixed rates, Simplicity has an offer which is based on a floating rate. With an initial plan of $50m to be lent over the......
 
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Tax Working Group - Final Report

By Matthew Gilligan on March 26th, 2019.

The Tax Working Group’s final report has been issued, and I give a quick assessment of the main points below. However, bear in mind that what the TWG have recommended and what Labour actually implement, are likely to be completely different.

Capital Gains Tax (CGT): Unsurprisingly, the TWG has recommended that a capital gains tax be implemented. Although there was disagreement amongst the members of the group, the majority are advocating that CGT apply to.....


 
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Financing Renovations on your Properties

By Ryan Smuts on March 21st, 2019.

Financing renovations by topping up on your home loan can be the easiest and cheapest way to get the job done if you don’t have access to the cash. ‘Topping up’ means increasing your existing lending with your existing bank. In some cases, if it makes more sense economically speaking, it could even be worthwhile refinancing (moving to another bank) for a better deal on your existing mortgage AND the new funds being requested......

 

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LOSS RING-FENCING QUESTIONS

By Matthew Gilligan on February 18th, 2019.

I wrote about loss ring-fencing in my December article, and it is still a hot topic. With the rules to take effect from 1 April 2019, and the legislation still not finalised, there are a number of questions that remain. I address some of these using case studies, which could well apply to you.  

But first, in case you missed my last blog, the main points from the draft ring-fencing of losses bill are.....

 
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HOT OFF THE PRESS - RING-FENCING BILL

By Matthew Gilligan on January 31st, 2019.

On 5 December 2018, the Government released the first draft of legislation dealing with the proposed ring-fencing of tax losses from rental properties. First impression on reading the Bill is that it is extraordinarily complicated and leaves questions unanswered. Here is a quick summary of the key points........


 

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Interest rates at all time low

By Kris Pedersen on November 19th, 2018.

There is a reasonable chance you have already heard about the phenomenal rates being offered almost across the board now with most banks having rate specials down into the 3%'s.

What you may not be aware of is that you don’t necessarily need to wait until your current fixed rates expire in order to take advantage of these very low rates.

We are already seeing in many cases that people are better to break out now and refix at the lower rate with the interest saving more than outstripping any break fees.

As a personal example yesterday 
I broke out of a 5-year rate that I had locked down circa 2 years ago for 4.65%. I incurred no break fee in doing so. 
I then re-fixed at a interest rate of......
 
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My two cents on CGT

By Matthew Gilligan on November 8th, 2018.

There is no doubt the Tax Working Group’s recently released interim report is the topic du jour. Accordingly, it is only appropriate that I offer my two cents’ worth, particularly in relation to the comments on a possible capital gains tax. 
 
  • The Tax Working Group (TWG) has ruled out a land tax or an inheritance tax, but appears to me to clearly be pushing towards implementation of CGT. They have noted that it is premature to form a view without firstly determining exactly how the tax may apply, but I would be highly surprised if their final report did not support implementation of CGT.
  • The TWG is of the view that CGT should apply across assets broadly, so not restricted solely to real estate. It would also apply to shares, intellectual property, goodwill, business assets etc. The one exception to this will be the family home.  
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Can I borrow money for renovations?

By Ryan Smuts on November 6th, 2018.

Can you borrow money to renovate?
The short answer – is yes. There are two key ways of borrowing for renovations (large, or small).

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KiwiSavers & First Home Grants

By Ryan Smuts on September 11th, 2018.

If you’re looking at purchasing your first home, using your KiwiSaver fund is a fantastic way to get a head start toward your deposit. I thought it may be worthwhile just covering some of the rules for individuals who are struggling to keep up with some of the changes as they happen. 
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Buying off the Plan

By Ryan Smuts on July 26th, 2018.

Buying off the plan can be an exciting proposal, it has many benefits which can be capitalized on if purchasing correctly and with enough due diligence put into practice, however every rose has its thorns, and it is important to be aware of the risks that can be associated to this method of purchasing property.
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Bridging Finance - What is it?

By Ryan Smuts on July 9th, 2018.

A bridging loan is a loan to assist you in purchasing a new property before you’ve unconditionally sold your existing property. This loan remains in place until the existing/old home is sold, and then you are left with the difference as your new mortgage. This can be either when upsizing, or downsizing.

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New government – New expectations – New rules - Property Finance and Meth Webinar

By Kris Pedersen on June 15th, 2018.

What's happening in property finance, what meth testing levels should I be following, and what are my latest non-bank finance options?

We cover it all in this co-hosted webinar with industry experts Kris Pedersen of Kris Pedersen Mortgages and David Faulkner of RealiQ. 
 
Kris and David will discuss a range of updates in the market, including:

 
 
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