Family trusts and the great Kiwi bach: both have a long history in New Zealand.  For many of the estimated 180,000+ trusts in New Zealand, compliance was something you did once or twice in your lifetime with the lawyer… “what’s his name? It’s been so long; do you remember who we used last time dear?”   Typically, the trustees are Mum and Dad, and that’s it: no independent or professional trustee. And that’s been okay for a long time – not best practice, but arguably tolerable for most people. Until the last decade or so, when the Ministry of Social Development “clicked” that ma ..read more

By now you will likely be aware that the government has started reducing the ability to claim interest on existing rental properties, starting 1 October 2021.  Several questions arise for holiday homeowners as result: Does the interest deduction phase-out over the next 4 years affect holiday homes? If so, how? What about mixed-use asset (MUA) rules? Where do they fit in? Can you offset losses from one type of rental property against another e.g., long-term rental against holiday homes? Are there any circumstances where losses from renting out your holiday home can result in a tax refund ..read more

By now you will likely be aware that the government has started reducing the ability to claim interest on existing rental properties, starting 1 October 2021.  Several questions arise for holiday homeowners as result: Does the interest deduction phase-out over the next 4 years affect holiday homes? If so, how? What about mixed-use asset (MUA) rules? Where do they fit in? Can you offset losses from one type of rental property against another e.g., long-term rental against holiday homes? Are there any circumstances where losses from renting out your holiday home can result in a tax refund ..read more

If you’ve owned your property for at least a couple of years, you will have seen some significant growth in the value of your home. So, what to do with the equity you’ve got sitting there? Purchase a rental property or buy a bach? A rental property is the typical kiwi's first port of call. But investors often find the hassle of dealing with tenants, chasing up rental arrears, and constant repairs from damage to be a hassle. For these people, a bach that can be used at your leisure but still generate income could be a good option. Will a bank lend you the money for a bach? So you want to buy a ..read more

For most homeowners with mortgages, income comes in at regular intervals and mortgage payments go out regularly - typically fortnightly or monthly.  As long as more goes in than comes out, very little monitoring of your mortgage is required. However, when your income fluctuates, for example; bach rental accommodation, it can be a good idea to adjust how you structure your mortgage so you don’t miss a regular mortgage payment. Imagine your mortgage payments for your bach rental accommodation are $1,500 per month.  In winter you might earn $1,000 per month in rent howev ..read more

Debt to Income ratios (DTI) are back in the news with the announcement that the government has given the power to the Reserve Bank to use them as a financial lever in their efforts to control the property market.   Firstly, a disclaimer: anything that restrains New Zealanders ability to buy inevitably raises some angry responses.  It is important to point out at this point that the numbers below aren’t meant to be a forecast, just an example of how to calculate Debt to Income ratios.  The feedback from the RBNZ has been that, at the moment, there is no intention to use DTI rati ..read more

Loan-to-value ratios (LVRs) are an ever-changing target for buyers; the Reserve Bank and the mainstream lenders use the ratio as a lever to reduce (or increase) the amount of deposit required and finance available to the general public thereby altering the heat of the property market.  This can be frustrating for buyers but is often a much better alternative to increasing interest rates. What is the latest with deposits for investment properties? In early 2021, LVR restrictions were reinstated to try and cool down the NZ property market.  The major change was for investment properti ..read more

*Terms and conditions: Get in touch before 30th June 2021 to go in the draw to win 1 of 5 $1000 Everything New Zealand travel vouchers. In order to be eligible for this promotion, individuals must either phone 0800 42 22 42 and speak to an advisor before June 30th 5:00PM or submit an online enquiry with all property details before June 30th 11:59 PM. In order to go in the draw, individuals must sign a Bachcare Owner Agreement before July 31st 2021. Offer not redeemable to those who make contact without signing a Bachcare Owner Agreement before July 31st 2021. Winners will be drawn August 2nd ..read more

For both business and leisure travelers, a holiday home rental is often preferred over a hotel stay. From the privacy and comfort of a holiday home to its competitive pricing, a holiday rental home is packed with advantages for the guest. As the property owner, you can generate an additional stream of income by opening your home up as a holiday rental property. However, there are numerous laws that you must abide by and liability risks that you must mitigate when you rent out your home to someone else regardless of how brief the stay is. Because of the critical importance of your short term r ..read more

Your holiday rental home holds incredible potential, but tapping into that potential is often easier said than done. Your property is competing against many others, and getting it the attention that it deserves from tourists and business travelers requires you to present your property in the most attractive light. Your listing will get ample exposure on a platform like Airbnb, but it will be listed along with many other properties. Your listing needs to stand out and grab the traveler’s attention. These Airbnb listing tips can help you to accomplish this essential goal. Choose the Perfect Cov ..read more