Forum Replies Created
Lets remember what online banking will let you do. As far as HSBC goes – it only allows you to view and transfer funds around your HSBC accounts. There wasnt any ‘pay bills’ or ‘pay anybody’ facility we enjoy here in Aus/NZ. If you need to transfer funds say to a property manager or other 3rd party, HSBC require a signed authority – faxed/emailed – and will ring you back to confirm the transfer. On top of that you have inbound and outbound fees – usually around $10-$15.[cap]
Thankyou for your response Sinead.
Until today – I hadn’t realised that in NZ DR is always applied to capital gains upon sale, where one has been claiming the depreciation. From the reading I have done on other NZ based forums – I dont see it as a negative. As an investor who also holds Oz based properties I am not aware of it applying to Australian based property holdings, and I guess there may be a few other Aussie based investors who may have been in my situation.The issue over whether or not I may be classified as a trader is key to me. I have just sold some property that I have had less than 2 years enable me to purchase a PPOR in the coming months and relocate back to NZ. The original intent was for long term hold. To that end I was wondering whether I would be classed as a trader and subject to NZ CGT.
Any other forum members with experience and thoughts on this issue would be most welcome.
Also – people change over time. It may be a case of shoe on the other foot somewhere down the track when deals dont excite you as much as they might her.
Also – people change over time. It may be a case of shoe on the other foot somewhere down the track when deals dont excite you as much as they might her.
Thankyou for your replies. I guess I should have outlined that I have recently sold some property and realised capital gain. The fact I have only had it for 2 years may trigger a depreciation recovered event. It was intended for a long term hold, however it made sense to take the profit and pay down other property investment debt.
I am concerned that I didnt factor DR into profit equation, and had heard that it is applied at a descretionary level depending on whether one is classified as a trader by the IRD. In which case – the root of what I am trying to get at is – whether there is an established timeframe that one holds a property before being classed as a trader – or successfully argue that the investment was intended as a long term hold.
I may post this on NZ board also and report back to anyone else who may be interested.
Many thanks.
It may be that a particular interested party is attempting to see whether you may be interested to sell. Perhaps the neighbour…or the neighbour’s new owner?
Great service Dean.
I’ve bookmarked it, and will use it in the near future.
Scorpio.Good question –
I understand that if the property was held in personal names in NZ – then tax credits apply, so I would see no reason why it wouldnt apply for an LAQC entity.
Would like to know for sure when you find out.
Scorpio.
The short answer is it depends on a couple of things. Is the property positive/negatively geared?, and what would you be looking to achieve by using a trust? – asset protection?
If you but a property in your own name – you can offset any losses against tax you pay from your regular income sources – usually a job. If it was in a trust – the trust carries the loss, and not claimed directly against your taxable income.
If you are in the highest income tax bracket, and you investment is positively geared, you may want to put in in the name of a partner/spouse who may be on a lower income.To decide whether it be put in a trust, or other legal entity – you would normally be concerned with asset protection in the event of bankruptcy or being sued – ie in your own business.
If – like most investors – you hold a tax paying job, most will just buy in their own names.
In any case – always get independant advice.Trust it helps.
ScorpioHi Robot.
Looks like you have got some good tips.At the end of the day, if you know that long term the Taranaki region is an odds on bet, and you pick up something that isnt going to cost you cashflow – then I say one IP is better than none.Dont fall into the trap of having to get the best deal at the expense of not acting on getting a good one.
The short answer in my experience is no. I have bought blocks of units – some self titled , others all on one title. Stamp Duty has never been an issue on NZ residential loans, where funds are raised in NZ.
Most banks or lenders will regard them as a residential investment loan depending on whether the units are self titled. Some banks may regard the investment as a commercial loan if they are on a single title, and may require a higher deposit.
Hope this helps.
Scorpio.
Hi Kurra,
By the time you read this you will probably be in NZ. I hold a number of properties in NZ, predominantly in CHCH, and as such can refer you to a CHCH based broker, solicitor and accountant who understands what we in the wider investment community want to achieve. Feel free to PM me if still required.
Cheers.Hi Domo.
Ive purchased and read all her books. They are an excellent source of material for new and experienced investors alike, and compliment much of what you will learn from Steve.Like Steve – she gives many examples of how to crunch numbers, and has some very good tools on her website.
CheersI would be very interested in the replies to this question. With the positive cashflows from NZ related income, often – without the ability to depreciate – we can find ourselves in a tax paying situation in Australia.
I believe it is quite legit claim.
Could someone knowledgeable also comment on whether an Austalian tax agent can calculate the chattels depreciation schedule from a NZ valuation report which lists the combined estimate of the chattels without itemisation, and if so – at what rate is can it be treated here.
Regards.
Scorpio.I dont see you losing either way you decide.
I would think tho that the ATO will still have an interest in hit you with CGT given your assumed tax deductions granted in previous returns.
Im sure it can only be levied if you declare the sale – but if you dont return after 7 years – who knows?
Logic would dictate that you refinance your investments as int only while you still have non deductable debt on your POPR. Good luck.
