Interest Deductibility — NZ Government — Update

On 10 June 2021, the Labour Government opened up a five-week consultation period on the new interest deductibility rules. They have released a Design of the interest limitation rule and additional bright-line rules discussion document which is lengthy and quite detailed, and reveals some interesting thinking, some of which I think is surprisingly taxpayer friendly. On first lookContinue reading “Interest Deductibility — NZ Government — Update”

New Tax Changes

I’m seething about these tax changes and it’s not just the fact that Labour lied to us; it’s the whole bigger picture and the implications for ordinary New Zealanders.  This Government is attacking middle New Zealand with all these housing initiatives and tax reforms – it’s mums and dads being hit, not property oligarchs. AccordingContinue reading “New Tax Changes”

Breaking News: Government introduces bright-line and interest deductibility changes

As part of the Government’s property policy announcements today (23 March 2021), there are two significant changes to tax rules that will impact residential property investors. Extension of the bright-line period Currently the bright-line period for residential property is five years. For residential properties acquired on or after 27 March 2021 that period will increaseContinue reading “Breaking News: Government introduces bright-line and interest deductibility changes”

New Zealand’s Housing Markets

Strong demand for housing, extreme shortage of listings, strong interest from overseas buyers inc. expats, some buying sight unseen. Strong sales in the high-end bracket $3 to $6m. Swamped with buyer enquiry. Everyone seems to be clambering to get a slice of the action. Bare land, sections, new builds existing houses. All attracting huge buyerContinue reading “New Zealand’s Housing Markets”

Growth Supporting Factors

Interest rates We have probably seen the lows this “cycle” for wholesale borrowing costs a month or so ago. Rises from here are more likely than declines, but those rises will be capped by central banks around the world adopting a deliberate risk preference. A number of central banks have stated that they prefer toContinue reading “Growth Supporting Factors”

Stock Market Update

Global markets were mixed overnight (S&P 500 Index +0.5%) as US stimulus talks, jobless claims and a surge in coronavirus cases across Europe kept financial markets cautious.  The number of Americans filing for state unemployment benefits last week dropped more than expected to 787,000, but remained stubbornly high. The market rebounded off its earlier lows afterContinue reading “Stock Market Update”

Tax Rate Change

On 9 September 2020, Labour announced a new tax rate of 39% on personal income exceeding $180,000 per annum. Key points that we know so far: •    Applies to individuals only, i.e. an individual on a salary of, say, $200,000 will pay an additional $1,200 per annum •    It does not apply to combined householdContinue reading “Tax Rate Change”

Investment Strategy

In this blog I share my current property investing strategy (as at August 2020), because there is a window of opportunity for investors that is likely to close soon. I outline the main points below.  Finance  At present, some banks are lending 80% on investment properties, which is good news for investors. At the sameContinue reading “Investment Strategy”

Seven Cash Flow Strategies

The COVID-19 (coronavirus) pandemic has forced governments around the world to implement extreme lockdown policies. Although this has helped contain the virus, the impact on their economies and, more specifically, small to medium sized businesses, has been devastating. For business owners, the phrase “cash is king” has never been truer as they try to weatherContinue reading “Seven Cash Flow Strategies”

Australia & New Zealand Market Movers

The Australian market was in the red yesterday (ASX 200 Index -0.8%) as reporting season continues to drive some big individual share price moves. Wesfarmers shares were down slightly after the company reported a -69% fall in net profit for the 2020 financial year, to $1.7 billion. The previous year’s $5.5 billion net profit was boostedContinue reading “Australia & New Zealand Market Movers”