Tax Working Group - Final Report

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.....
LOSS RING-FENCING QUESTIONS
But first, in case you missed my last blog, the main points from the draft ring-fencing of losses bill are.....
HOT OFF THE PRESS - RING-FENCING BILL
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........
Interest rates at all time low
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.
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......
My two cents on CGT
- 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.
What are you doing with your mortgages in 2018?
I’ve noticed most people starting this year with a bit of optimism. However, it’s hard to say how much of that is based around fundamentals, and how much is more attributable to the amazing weather we have been having and a decent summer break.
From our side of the Finance Desk, it has actually been a busy start to the year with quite a few purchasers signing up new properties over the break, and general rhetoric has suggested that well-presented properties have been moving relatively quickly. Most banks have also been in contact saying that they are.....
Ripple effects - proposed housing policy
The new government, their proposed changes to policies, and their effect on landlords/investors, what does it all mean?
The election has blown over, our political environment has been set for at least the next 3 years, and the term under Labour seems like it will be influential for property owners/investors with the fact it was such a hot topic in the campaign.
To re-cap on our previous newsletter, I am primarily focusing on the property/rental market, the economy and how this will impact us as investors.
From this perspective, the Labour party plans on the following changes, which I’ve grouped together based on.....
2017 Economic & Property Update - Post Election Video
Watch Matthew Gilligan and Tony Alexander as they give their post-election analysis. They discuss what is likely to happen in the economy and property market over the next 12 months, factors influencing the market, and how you can invest and profit in the current and unfolding conditions.
How will the Election impact the property investment market?
Election time is less than a couple of days away and a lot has changed in the last 6 weeks with it being interesting to see if the ‘personality politics’ that worked so well for National under John Key also work with Jacinda Ardern taking the reigns over a Labour party that until that stage had managed to continue to trip over itself over the best part of the last decade. Under MMP....
Labour proposal to ringfence losses
We are not going to fall off a cliff!
After a fun couple of months with the Lions and American’s Cup taking up much of the countries attention I now expect this to divert to the upcoming election. While the property market has already slowed considerably I expect it may continue to do so until post 23rd of September.
While the mainstream media seems to be doing its best to crash the market in reality it is just not going to happen and there is no “cliff” we are about to fall off.....
Its time to review your mortgage
Webinar - Successfully navigating the challenges of being a Property Investor and Landlord in 2017
If you missed our latest Webinar with David Faulkner on "Successfully navigating the challenges of being a Property Investor and Landlord in 2017" click on the below link to watch the recording.
Click here to watch the KPM Webinar
Financial Stability Report - May 2017
This morning the Reserve Bank has released its latest Financial Stability Report. This is released twice a year and has previously been the platform which the RBNZ has used to announce measures such as some of the previous LVR restrictions.....
Can property prices keep rising indefinitely?
I was recently asked whether there was an upper limit to the ratio between property price and household income, which in Auckland currently sits at about 10 to 1. In other words, the average property price is worth 10 times the average annual income.
Also known as the median multiple, this is an internationally recognised measure of housing affordability and is calculated by dividing house price by.....