NZ Property Investor May 2019

Well, what a turnaround! After months of heated speculation about the looming spectre of a capital gains tax, suddenly the prospect was no more. In delivering the Government’s much anticipated response to the Tax Working Group’s recommendations, Prime Minister Jacinda Ardern definitively ruled out the introduction of a capital gains tax. And not just now, but while she is Prime Minister. That means New Zealand is not likely to see an attempt to levy taxes on capital gains for many years. Given the Labour Party’s past commitment to a capital gains tax as well as the extent of the TWG’s recommendation, the announcement came as a big surprise to many. There was widespread concern among investors that the Government might play to the anti-landlord mob and opt to simply introduce…

Over the past year, there have been growing calls for the property management sector to be subject to a compulsory regulatory regime. Currently, property managers require no government mandated training, qualifications, or licence to operate and many people say this allows for rogue operators who cause harm to consumers. But Housing Minister Phil Twyford has said he will only act after the Government has finished introducing its current programme of tenancy reforms. This has prompted two organisations who work with property managers to make moves to boost professionalism in the sector themselves. REINZ chief executive Bindi Norwell says an unregulated property management market jeopardises the reputation of all property managers – so they’ve partnered up with The Skills Organisation to offer an NZQA recognised property management qualification. “This is about…

The bank launched the new product to help improve energy efficiency and sustainability standards in New Zealand residential properties. ANZ’s Healthy Home Loan Package cuts 70 basis points off standard fixed-rate loans and up to 1% from standard floating and flexible home loan rates. It also offers customers fee waivers. This discount could knock down the bank’s one-year rate to just 3.75%, based on its current rates. The product is available for new builds or upgrades to residential properties with a Homestar rating of six or above, which is considered to be a high standard of sustainability and energy efficiency. ANZ managing director of retail and business banking Antonia Watson says the bank wants to help improve building standards in New Zealand. “Most existing New Zealand homes only achieve a…

Following the release of the Tax Working Group’s (TWG) sweeping recommendations earlier this year, many investors feared a capital gains tax in some form was a given. But when the Government finally released its response to the TWG’s report it shocked everyone by ditching the controversial capital gains tax proposal entirely. According to Prime Minister Jacinda Ardern, after significant discussion the parties in the Coalition Government were unable to reach a consensus. She still believes there are inequities in our tax system that a capital gains tax in some form could have helped to resolve. “But while I have believed in a capital gains tax, it’s clear many New Zealanders do not. That is why I am also ruling out a capital gains tax under my leadership in the future.”…

MAY PROPERTY NIGHT May 6, Christchurch; May 20, Napier; May 20, Auckland; May 21, Wellington; May 21, Dunedin; May 22, Tauranga; May 27; Hamilton, May 29, Auckland. Free seminar on how to succeed through property investing. Book at www.positiverealestate.co.nz/nzpi INVESTING IN APARTMENTS FOR CASH FLOW May 19 Amora Hotel, 100 Greys Avenue, Auckland. 9am – 5pm. Tickets $47. Book through www.granthoey.co.nz RONOVATIONS INVESTMENT SEMINAR May 21 Tickets free, includes complimentary lunch. The Common, 1 Faraday Street, Parnell, Auckland. Register at www.ronovationz.com PROPERTY LEADERS ONE-DAY EVENT May 26 How to thrive in the downturn. From 9:30am at Ellerslie Event Centre, Auckland. Hosted by Gilligan Rowe & Associates. Cost $55. For more information and to register: https://www.gra.co.nz/property-leaders-one-day-event For more information about listing your event, please contact Lisa Wise: lisa@tarawera.co.nz.…

1 Policy king hit Investors have recently been dealt a double whammy with the concurrent release of the Tax Working Group’s recommendations on capital gains and the Healthy Homes minimum standards. 2 Capital gains battle heats up There are now two declared armies in the battle over taxing capital gains, with the launch of a new pro-capital gains tax campaign on Monday. 3 Treat rental properties as a business The need for landlords to treat their rental properties as a business is highlighted by three new Tenancy Tribunal rulings. 4 Investors hold properties for longer Public perception has it that investors spend their time flipping properties on a regular basis but new analysis shows they hold properties for longer than other buyers. 5 Niche options Investors interested in a property…