Posts Tagged ‘property’
INTEREST DEDUCTIBILITY NZ: THE FULL RULES FOR RENTAL PROPERTY OWNERS
Interest deductibility NZ landlords rely on has changed more than almost any other property tax rule in the past five years. It disappeared almost entirely between 2021 and 2024. Then it came back in stages. Many investors still aren’t sure exactly where things stand. This guide sets out the full history, the current rule, and…
Read MoreRENTAL PROPERTY YIELD vs CASH FLOW: WHAT ACTUALLY MATTERS FOR INVESTORS
Rental property yield vs cash flow is a distinction that trips up more investors than almost any other property metric. A property can show an impressive yield on paper. It can still drain money from your bank account every month. Another can show a modest yield and comfortably fund itself. This guide explains why yield…
Read MoreFINDING THE RIGHT SUBURB TO BUY IN
Finding the right suburb to buy in matters as much as choosing the right property itself. The same house can perform completely differently depending on where it sits. Rental demand, capital growth, and even how easily you can sell down the track all depend heavily on location. This guide walks through what actually matters when…
Read MoreTAX TRAPS IN NEW ZEALAND LAND TRANSACTIONS
Tax traps in New Zealand land transactions: is that a thing? Yes. New Zealand’s Inland Revenue Department (IRD) has significantly sharpened its tools for detecting taxable land transactions. With the integration of artificial intelligence (AI) into its systems, the IRD now has unprecedented capabilities to identify patterns, flag anomalies, and enforce tax compliance more rigorously…
Read MoreOFFSET LTC PROFITS OR LOSSES AGAINST OTHER RENTALS
Note that you can’t offset any losses against income from other sources e.g. wages, like you used to in the good old days. That is what the concept of “ring-fencing of losses” means. The losses are “ring-fenced” so that they only apply to residential rental property.
Read MoreINVESTMENT PROPERTY AND LTCs: A GOOD MATCH?
Investment property and LTCs: A good match? (Or as Shakespeare might have said “To LTC or not to LTC: that is the question(opens in new tab).”) For many years, property investors across New Zealand embraced Look-Through Companies (LTCs) as the structure of choice for holding rental properties. Accountants, lawyers, mortgage advisers, and investors…
Read MorePOSITIVE GEARING VS NEGATIVE GEARING
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.
Read MoreTAXABLE RENTAL INCOME IN NEW ZEALAND
Taxable rental income in New Zealand …many New Zealanders understand that rent from an investment property is taxable. However, far fewer realise that the rules extend well beyond traditional rental properties. You might own a rental property with long-term tenants. Alternatively, you might rent out a room in your home,(opens in new tab) host short-term…
Read More9 INVESTMENT STRATEGIES
9 investment strategies we think are worth exploring, beyond simply buying a standard existing rental property. Each has its own genuine advantages today. That includes different LVR and DTI treatment, different bright-line exposure, different yield potential, or simply diversification away from the standard model. 30-Second Read Since 1 April 2025, interest deductibility is fully restored…
Read MoreCHANGING SHARES IN LTCS: CONSIDERATIONS
Let’s say that the company owes the shareholders $150,000. This is tracked in the Shareholders Current Account, and is a liability (debt) of the LTC…
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