Forum Replies Created
I’d say your liable for cgt unless the property was in a nz trust with a kiwi based trustee (i may be wrong but i think this is right)
More of interest is your nz tax liability.I’d like to know how many of you Aussies who have multiple properties and are selling them up are going to admit you are traders and will pay tax on your profits.
The IRD are targeting overseas profit takers.There is also talk of a cgt but that always happens after a boom.Hi,i live here in Qt and the property market here like many places has seen huge growth.House prices are totally over inflated.Good sections with views etc are still reasonable but the high cost of building is the problem.Prices will flatten and might correct abit so i’d advise waiting for a while.We are going to have a glut of units and i was told the other day “the ass had fallen out of the unit market”by a real estate agent friend.So a few bargins might appear down the track.
The airport will only have minor upgrades, the facts are it is situated in a suburbian area and has flight restrictions after 5.30 pm, also a short runway limits the type of aircraft which can land.
A lot of money is still being spent around town, we have Jacks Point coming on which is a subdivison the size of Arrowtown and a lot of smaller ones.
The biggest problem to be answered in town is that of workers accomadation.People often can’t stay because rents are too high or there’s none available,then businesses suffer due to lack of staff.
regards Queenstownerhey minimogul
You’ll love it,long as you can handle the cold and the high power bills( they love to hit ya when you need it most)
you know, been here 3 yrs and still haven’t made it to the cow.Winnies has great pizza as well.
QterHi
i’m in Queenstown(hence the handle)and the best part of the yr is about to begin here
.Just a word of warning to anybody traveling here and looking at the lovely frosted grass,watch the road! it’s likely to be covered in black ice especially on shaded spots.
Hi MiniMogul, coming here for 3 months hey,hope your got accom sorted out as by july you’ll be luckly to get somebodies garden shed.You’ll love it though,we were only staying for a yr and that was 3 yrs ago.
regards QueenstownerHi all
Thanks for your replies, i’ll check them out.
regards queenstowner.Hi Seafire
I moved over here from oz to buy land and build houses.I’m currently building in central otago and i would say that you would be very unlikely to be able to build here and get your house CF+
land here is 3 times what it was when we started buying 3 yrs back.The lands not the problem, it’s the cost of materials and subbies.Cost of building down here is running at 1k to 1.3k/m2 for an average home.
On the other hand if you a builder or are a great diyer you could do it all yourself except needing a plumber and sparky.This is basically what we do as well as sourcing products at the best prices.
Things in your favour for building in nz are anybody can build a house with no limits to how many you build.
very cheap and easy to subdivide land.
no stamp duty so cheap to change your entity.
and if your going to keep it for a while, no CG tax.
regards Queenstownersorry cashflow, it’s actually near Cairns on the atherton tablelands.
Hi all
Salla, Queenstown is a very expensive town to live in,I’ve been here nearly three yrs and have seen prices here go crazy.Sections are still pretty good value considering the views but the cost of building in this area is way too high.
Rents are high and peak in the winter when it’s next to impossible to find a flat.It’s hard to say if house prices here are going to keep rising,Queenstown in the past has been a very boom/bust town but with pop growth of around 20% and huge increases in tourism it’s likely prices will plato instead of bust.
One area which gives high returns here is holiday letting with many good quality homes letting at $250-$500 a night, some up as high as $1000/night.
You can expect to get an average of $200+ for 180 days of the yr.management for these usually is about 20%.
regards QueenstownerHi
I think they aren’t worth the cost and personally would rather pull the file, it has saved me from making a huge mistake that didn’t come up on the lim.If you or someone you trust can’t get in to inspect the property and go to the council to view the file your taking a major risk.i think many councils are starting to charge a fee for viewing the file now or are thinking about it,I’m sure it was Invercargill city talking about it in the paper a while back.
Regards queenstowner.Hi Julian2
your right,it is a ten yr period but i would say there is a lot of grey area here and does depend on your structure.Also who in this country wouldn’t hold their investment properties in a trust?
You can bet your boots alot of the aust investors buying in nz are doing so through a nz based trust to avoid aust CG tax down the track.
Queenstowner.hi all
I can’t see CG tax coming in at all,nz needs to attract as much investment capital as possible so a few bonuses are needed in a small market.However too many people think they can trade properties and get away taxfree.Even a lot of locals here don’t seem to understand it is your INTENT! that determines how you are viewed.
I would be very worried about flipping alot of properties and not declaring the profit as the IRD are cracking down on trading.If your intent is to buy and hold for a number of yrs for rental income, this becomes the taxable activity.Your intent was rental income and when you decide to sell later on it’s CG taxfree.
You do not as julian2 said want to be tainted as a trader or developer.I am a property developer involved in both land subdivison and spec home building as well as other small businesses.
I disagree that all your properties become tainted as we have properties that we INTEND to keep for the forseeable future as rentals therefore incuring income tax but not CG tax when we sell.
Regards Queenstowneri’m kiwi born but grew up in oz so i’ll join the fun.
purlins = roof battens
dwang = noggin
chilly bin = esky
and before anybody says it sheep doesn’t = good timeHi Redhaven
I can’t really give you any idea of your costs or what the developer next door might make,apart from i’m in a different country, there’s too many variables.
Over here consulting surveyors oversee the whole project.If they do the same in Oz they will be able to tell you how many lots you can subdivide and give a costing per lot as he will liase with roading contractors,utilities contractors and most importantly the district council.
He should also put you in touch with landscapers.You need to develop a style for your subdivision, you hopefully would be doing something that your proud of not just a case of how much i can make.
Another option, if that might cause too many sleepless nights is to go ahead and get the land subdivided into whatever size lots your allowed,put the whole thing on the market.might be worth double it’s current value to a developer.
good luck
QueenstownerHi Redhaven
our group is currently doing a 50+ section development in Nz which is a first for us as we are spec home builders.
we formed a small group of 4 investers who each have different skills to bring to the group as well as security.One of the most important partners is an accountant,he saves us a lot of money,also bankers will feel you are less of a risk and are more willing to fund you.our input is more on the technical side which gives us the ability to project manage ourselves.another partner owns a real Estate agency so the sales and marketing is covered by someone with a vested interest not just looking for a commision.
you already have the land,we didn’t.We bought low and are selling high and that’s what any developer will do.The person we purchased off regrets the sale because he couldn’t see what we could.
We have now presold enough lots to begin and the banks on the strength of these contracts fund the contractors.
I might have made it sound easy but it’s not, we have had a steep learning curve.If you can’t form your own group join somebody elses your the man with the land,your holding the cookie.
your potentual returns are way higher than selling it as is.
regards QueenstownerHi Lukis
I spec build in nz using products we import ourselves from Aust and have bought in two american barn style sheds to be fitted out for residential use.i can’t give advice on whether they are a cheaper way to build in the long run yet as this is our first project in steel and two storey.yes kits in oz are cheaper than nz but anyone importing and erecting them will charge almost the same as a local one,then you’ll need all the other trades to finish it off.
yes you can import yourself,the cheapest way is to fill a 20 ft container with the kit and add any internal fittings eg doors,windows etc.a 20 ft will cost approx $3500 to freight from Bris to Chch,on top of this is hassle of being gst registered in oz so you can claim back gst on export,then you pay 12.5% gst here.Then when your container arrives you will need a MAF officer or autherised person to do a biosecurity inspection of everything that comes out of that container.
also a steel kit from oz will need a nz engineer to stamp it before council will even look at it.
You may find a project home builder in Chch who has two storey plans on offer are a cheaper and less stressful option.
regards Queenstowner.Hey pursefat
i’m Southland born and grew up in oz and can tell you that Southland is way ahead of alot of Oz in it’s field and that is farming, Invercargill is a service city to that industry and whoose fate rides with that.fee free polytech might have brought some zing to the city but it’s the state of the art dairy units, top producing sheep farmers and others that drive the economy.The only one 30/40 yrs behind is you for not buying a farm there when land was cheap.My advice is for you to have a good think about your long term plans.If you sell this property you need to think about how much of a gain will you make in 6 weeks, have you done any improvements on it and at what cost.If it’s a investment property you will be up for capital gains tax, the IRD have stated they are cracking down on traders.
If it’s CF+ you’re making passive money,so i would say keep it,improve it , value it and use the equity for the next CF+ property.
Also what entity is it in, if it’s your own names you might think about selling it to holding company or a trust you set up.If either is GST registered you may be able to claim gst back on it (divide purchase price by 9)because you are in the rental business,( i’m not sure if you can do this on second hand buildings but you can do it on land purchased from non gst registered people)
What ever you plan to do find yourself a good accountant who is also a property investor and work out a plan to suit your needs.Hi
Try SizeWise on the Gold Coast Ph 0755395538,they can cut you a kitchen out,send it over in knock down form and you assemble it.Any half descent DIYer could put it together.Hi Westan
Yip Dee st it is.
Did you see the Sunday and 20/20 programs a few weeks back predicting doom and gloom for the NZ property market ?I had a friend in real estate say it cost him a sale from scared off investers.
For those who saw either programs you have to wonder on those guys motives, could it be that the wealthy invester in Auckland was promoting his new book which just happened to hit the shelf a couple of days later and is all about what to do to prepare for the next crash.
As for the property developer in Wanaka warning people off there and showing a house he had to sell cheap, inplying he was getting out now, well i heard he sold that way back and yes he got less than he wanted but the market was still surging ahead so his true reason to sell is unknown.This is a fella that heads a company that’s made millions in subdivisions in the area.Could it be that land available to subdivide is a little to dear now and certain cashed up groups would love to see a market correction.
Yes there is going to be a leveling off and a slight correction, you don’t need to be Einstein to see that but it’s wrong when so called experts use scare tactics on two national tv channels to frighten people for their own benefit.I live in Queenstown NZ and am still very positive about property in the south.I think older established homes are cheap here in many places compared to the high cost of building a new one.
Building materials other than timber are nearly double the price in Otago/Southland than in Brisbane.Sub contractors here are charging the earth,eg tilers get $65/m2 to lay floor tiles,$100/m2 for wall tiles, gibstoppers are charging anywere from $9 to $16/m2 for stopping only, cost my mate to plumb a 240/m2 house $18 000 and i could keep going.
All this tells me new homes and units off the plan are overpriced and that is were the high risk is so don’t get sucked into a new unit in Auckland or Queenstown.
Beware of many older homes here as well, do not buy without visually inspecting the place.The south is cold and in many places very wet, condensation is a major problem and many older homes do not have proper insulation which as a friend found out can cost a fortune to bring up to standard if you want to lower your heating costs.Also NZers are great DIYs and any man and his dog can call himself a builder here so you don’t know what has been done to the place over the yrs.
I have been buying some commercial property in Invercargill,12% yield on purchase price.( great returns but don’t expect much CG as prices have leveled out for sure)An example though of nearly making a huge mistake was a set of 4 shops which were all vacant with 4 units above all rented out on the main drag in Invercargill, now of right you would assume commercial zoning esp. with shops either side,now with an agent telling me how with a little work he’ll get me all leased out in no time and the place would return on cost 17%(units above paid the interest,shops were the cream)Fantastic i thought,it was ONLY when i went into council and pulled the file did i discover the agent had not told me due to the shops being vacant through a zoning review that I needed Publically notified consent as well as a lot of other crap, needless to say i walked away.
Nz is a great place to invest for cashflow+ properties just be here when you buy so you don’t end up with a lemon.
Well it’s snowing and i’m off for a day of snowboarding,seeya.
.Just a word of warning to anybody traveling here and looking at the lovely frosted grass,watch the road! it’s likely to be covered in black ice especially on shaded spots.
