Good morning all
Could someone please enlighten me about the land tax situation in NZ please?
Rita.
Hi Rita
Didn’t know we had any.
Remember there is no capital gains tax, stamp duty and something else I can’t remember what it is that you have in Australia.
Regards
Hi Rita
I think you mean rates???It’s paid quarterly and the real estate agent will tell you what it is per annum. Maybe around 800 -1000 per year for places I have bought. Depends on size of land and rates in that area.
cheers-
Minihi Guys
muppett
maybe you were going to say
“ants- the sort that eat your house” i love that quote from someone on the forum it’s a classic[
]Mini and Muppet
what do you pay per year for insurance?
regards westanRita, as far as I know it was abolished in 1990
Jim.He who hesitates is sometimes saved!…Thurber.
Muppet is spot on. No land tax in NZ, no stamp duty, no CGT (altho Aussie tax residents will pay CGT). Local Council Rates are charged as per Australia.
Cheers[
]Australian Residents will Pay CGT. Hmmm What if we set up a company in new zealand that I an aussie resident am a director of??
The company won’t pay CGT in New Zealand, but if any of the gains end up being distributed to you as a dividend then you’ll pay tax on them in OZ as foreign sourced income.
Rod
Hi Guys
Perhaps the other thing I was trying to think of was snakes-we have NO snakes in NZ. Only two legged ones.
We do have ants-commonly called house ants usually eat up the sugar, one drops around the bench. More of a nuisance than a menance.
There are cockroaches as well in some areas. However generally not a problem.
In the summer we have big blow flies especially if you live in the country. A blast of spray usually fixes them.Hi Westan
Now house rates is another question.
House in South Auckland rates about $1200+Auckland Regional Authority Rates of $107+ water rates of about $50 so far this year.
Houses you know where, also about $1100 each.
House in Napier about$1200.
Flats in Napier about $800 each.
So total rates bill for the year will be about $6200.
Mum at Kinloch sitting on a million dollar property pays about $2000 per year.
There seems to be rationale in setting rates around the country.
A $180000 house in Auckland may pay $1200 and a $45000 in Taumarunui may pay about the same amount.Then there is insurance in on top of this of about $1900 per year. Luckily all of these expenses are tax deductible so I’ll get some of it back.
All mine are insured through State. Have only had one claim in two years. Tenant left the plug in the sink and the tap running then went off to rugby training. Needed his togs on when he got home. Still the new lino looked nice.
There is a property forum in NZ called http://www.housemouse.co.nz Postings are now starting to build up. Some of you may find something of interest.
Regards
is that just ‘normal’ insurance? ie covers building/chattels.
There is also landlord insurance avilable, so if the tenant does damage that the bond cant cover etc.
rentsure: http://www.mortgages.co.nz/htdocs/Insurance.htm
and some insurance brokers using circles insurance product: http://www.o.co.nz/public/landlord.htmPlug: theres a forum on my site too
NZ Property Investing News
http://www.Landlords.co.nzHi there Landlords.co.nz
Good to see you entering in to the spirit of things.
Tried to register on your site a long time ago but my password doesn’t seem to want to work.
I visit it on a regular basis to read the latest postings. I like your latest news section. However I’ve usually read it on other news sites. Good to refresh your memory at a later date though.I think my insurances are normal insurances eg chattels and buildings. However I’ve noticed that State seem to be changing what you can get cover for and charging extra for other things.
I presume the $290 Rentsure policy only covers one property at a time.
Regards
Thank you all for replies.
No stamp duty, no CGT for NZanders, bigger mountains and longer snow season!!!
Gotta visit.
brianhc do you know if the CGT 50% rule applies in NZ if the property is held for min. 12 mths?
Thanks all
Rita []Hi Rita
You beat me by 19 seconds. We are going skiing on Tuesday weather permitting.
Regards
Hi Rita.
Not sure on 50%, CGT is not my specialty (I hate it! Aussie is first country I have lived in with CGT).
Probably best to invest via a NZ legal entity(?), so that any gains via sales can potentially be reinvested in more properties without triggering a tax event, but not sure? Maybe Aussies with IPs in NZ can comment?
Cheers[
]Hi Guys! good to know these. Can you please tell me if there is any GST issues involved with buying a property in NZ as I am in Sydney. I think not but someone told me yes there is an issue….pls. comment.
regards
viralHi Guys
Now I remember what the other thing was I had forgotten in an earlier post higher up the list…and Westan it isn’t ants or snakes or cockroaches or great white sharks or what ever…..it is that there is no GST payable on residential property sales in NZ.
Regards
Thanks folks,
So Muppet
“No CGT on residential property sales in NZ”
RodC.. and if you receive dividends through a company etc you will pay tax on your Aussie return,as income from a foriegn source.Quote:
“Probably best to invest via a NZ legal entity (?) so that any gains in sales can potentially be reinvested in more properties without triggering a tax event, but not sure”
This sounds good .Can any Aussie IP investors with NZ props expand on this.Thanks
RitaMuppet… enjoy the snow.
westan, around $300 per property per year with NZI.
Am insuring for up to a specified dollar value per property, rather than ‘full replacement’ insurance.
The way I calculate what that figure should be is purchase price plus what I spent plus 25 percent.cheers-
Mini
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