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.....
It’s not the relaxing to 70% that some investors had been expecting however the increase from 60% to a 65% threshold will in some cases be the difference in getting another property transaction across the line. That is the big news for investors in the Financial Stability Report which was released earlier this morning.
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.....
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 do I get started in property investment?
- Learn the basic principles you need to know about property investment
- Understand how to turn your first investment property into a portfolio
Property ownership is and always will be a kiwi dream, if not, THE kiwi dream. In the current market, especially among major town centers – with Auckland in particular – affordability is more and more problematic, with property investment seeming even further out of reach – but in reality, is it?
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....