Bay of Plenty

Budget 2019

Here are some key observations from Budget 2019. Government spending is expected to increase $25 billion over the next four years. This year’s surplus of $3 billion is expected to fall to $1.3 billion next year. Crown debt is expected to be $5... Read more

Auckland turns down and OCR unchanged

Three years after the tide turned on Auckland house prices, the headlines are finally announcing the new reality. Only those with a vested interest in seeing prices higher are talking the Auckland market up at the moment. Of the independent... Read more

The pros and cons of short-stay rentals

In previous columns I have mentioned the rapid growth in short term rentals, and the opportunity it presents, especially in tourist hot spots. The growth in the number of properties listed on sites like AirBNB has been phenomenal. Some of the new... Read more

A worst best keep secret

It has remained one of those vexed questions for eternity: Why are some people wealthy while others are poor? What is remarkable about the question is that it continues to be asked, when there are many generations of examples that provide the... Read more

The year that may be

It’s been a good year for property investors in the provinces and Wellington, but less so for Aucklanders.  Speculators are no longer dominant and the Auckland property market is settling into a sideways pattern as often happens after years... Read more

The year that was

2018 has been a good year for local property investors. Property values have continued to increase while interest rates remain at very low levels.  There are no signs that this will change in the year ahead and I personally remain confident about... Read more

GST and online purchases

This week the Labour led government introduced an omnibus Bill to Parliament that when passed into legislation will, among other things, collect GST on low value imported goods.  The GST change will apply to imported goods valued under $1,000. The... Read more

Ring fencing

This week the Labour led government introduced a Bill to Parliament that will ring-fence tax losses on rental property fom 1 April next year. The Government’s press release says, “Currently investors with loss-making rental properties can... Read more

Facts, figures and property managers

Here are some tidbits from the “Interesting facts and figures” file. A third of New Zealand households are renting (589,000 households). In 1991 about a quarter were renting. It’s a growth market. The average tenancy is around 12... Read more

When a capital gain is income

The interim report recently published by the government’s Tax Working Group had a handy summary of the current law regarding taxing gains in the value of investment assets. Here are the relevant extracts from their report. Gains on the sale... Read more