Fixing Our Housing Problem

The government need to treat investors and developers as the solution, not the problem. Supply is the long-term solution – and it comes from developers and investors. You need both. The investors buy the assets from the developers. If the government continue to make it too hard and annoy property owners (the “landed gentry”) withContinue reading “Fixing Our Housing Problem”

What can I claim as a tax deductible when I am in business?

Apart from a few special rules, any cost necessary to run your business will probably be tax deductible.  However, there are a few things to be aware of – some items that you might assume could be claimed can’t be, and conversely, there may be others you didn’t realise are legitimate expenses. General If youContinue reading “What can I claim as a tax deductible when I am in business?”

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”

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”