POSITIVE GEARING VS NEGATIVE GEARING

Diagram comparing positive gearing (rental income greater than property expenses) and negative gearing (rental income less than property expenses) for NZ property investment, shown as blue and red gear icons either side of a house.

Investing in property can be a lucrative venture, but it’s essential to understand the financial strategies involved. Two terms that frequently arise in property investment discussions are positive gearing and negative gearing. In New Zealand, these concepts play a significant role in how investors manage their real estate portfolios.

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TAX RETURN FAQ

NZ tax return FAQ illustration showing a kiwi bird reviewing a tax return with questions about tax deductions, work expenses, refund status, filing deadlines, and eligibility to claim expenses.

Q: Why do I need to complete a tax questionnaire  every year?
A: This is basically to cover your back. It proves that we and you have all asked/answered the right questions, if anyone ever asks. Could come in handy if you are trying to prove your innocence to IRD. 

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RENTAL PROPERTY: WHAT RECORDS DO YOU NEED TO KEEP?

a NZ landlord with piles of receipts realises he needs to keep better records

What records do you need to keep for your rental* property? Here is a general guide. Note that this list assumes you are using a property manager.  All costs are for the 12 months preceding 31 March:​RENTAL PROPERTY Copy of Sale & Purchase Agreement (if 1st year)Total Rent ReceivedInsurances, e.g. Landlord Protection, Mortgage Protection, HouseLegal feesProperty Management fees (if applicable)Rates – water and CouncilMaintenance, including any purchases e.g. heat-pumpRubbis […]

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THE ULTIMATE GUIDE TO BUSINESS STRUCTURES AND RECORD-KEEPING

want to buy property

The ultimate guide to business structures and record-keeping in New Zealand? Yes: you’ve come to the right place! Managing a business in New Zealand involves careful planning, choosing the right structure, and maintaining meticulous records. This guide explores the most common business structures in New Zealand and provides practical tips on record-keeping to ensure compliance…

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