For property investors it’s a good day when the Reserve Bank decides to hold the official cash rate. A hold on the OCR usually means interest rates also remain the same or drop and that of course is good news for anyone with a variable home mortgage loan or a fixed rate loan coming up for renewal.
What’s all the fuss about? A far reaching Capital Gains Tax is not going to happen anytime soon. It’s very complex and arguably it’s make up is still in the workings phase.
Self property management is a doodle when everything goes to plan. The tenants pay their rent, respect your property and let you know when something needs replacing or maintained. Ahh the sound of a happy tenant – landlord relationship!
Many a New Zealand seller has bemoaned the exorbitant real estate commission fees that local real estate agents charge, but few realise just how over-priced the traditional service is.
Many regions around New Zealand can not afford to fund the implementation of services infrastructure needed before land can be released to developers for building new homes.
Property Traders pay Tax on the gains made from their property deals. Yes you heard right. So there is a CGT of sorts – on property deals in NZ it’s just not officially known as CGT. Like any other business where a profit has been made tax is due! Why do some politicians shy away from this fact?
Will any of the Election promises fix supply and demand for property?
Building new homes in the thousands and incentivising first home buyers sounds good but is it the right fix for our property market?
Property investment is used to describe many activities engaged in by an investor to create a profit from property.
Wikipedia describes property investment in this way:
Offering incentives in order to retain a good tenant is simply smart business — it’s significantly cheaper to maintain a current customer by giving them a small gift than it is to market and find a new tenant. But how exactly to retain tenants (or, more accurately since we’re clearly talking about incentives here, what comprises an ‘effective’ incentive) is a question with a lot of potential answers.
Who has every heard of anyone doing really well at something (sport or business) without the prerequisite learning, ongoing training and practice? An athlete trains hard all the time to keep in peak form. Ongoing training is key part of continued success without it arguably failure is given better odds.
Landlords know the woes of being uninsured or under insured. Properties being burnt down, or flooded often make the news. Tenants on the other hand are less informed of their liabilities and often that’s due to a “she’ll-be-right” attitude.
The cruelest word in the dictionary for a rental property owner is “Vacancy”. The mere mention of tenants leaving and a rental property being vacant even if it’s just for a week or two sends shivers down the investor’s spine.