Now that we have had time to reflect on the impact of these announcements, we thought you would appreciate our view on things going forward.
There has already been some great commentary written about the changes and we have included some links for you to review.
The main five points however:
Trap 3 – Tainting for Life
Friends, Jesse and Skylar, are 50% shareholders in a property development company called...
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).
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:
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......
But first, in case you missed my last blog, the main points from the draft ring-fencing of losses bill are.....
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........
- 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.
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:
Why use a broker over your bank?
This is a question that is often asked, so it seems worth covering a few points from different perspectives which may help shine some light on the differences (or opportunities) presented by working with one or the other.
From a banking perspective:
When you’re considering applying for a loan, it makes more sense to approach a broker than it is to approach a bank because of the sheer range of options that are available to you, due to their independence. This is only one of many benefits.
When applying for a loan...
You are probably already familiar with the two-year bright-line test that was introduced in October 2015. Under this test, investment property that is sold within two years of settlement is subject to tax on any increase in value.
The Labour Government has always said they will extend this test to five years. On 15 February it was announced that the new.....
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.....