Back to Blog

Vaughan Walsh receives Fellowship FCA Designation

We’re proud to share that last week our very own Vaughan Walsh was awarded a Fellowship FCA Designation by the Council of Chartered Accountants Australia and New Zealand. Vaughan was one of eight members awarded a Fellowship, which is a peer-to-peer recognition of a member’s career achievements and outstanding contribution to the profession of accountancy. Everyone who has worked with Vaughan knows how well-deserved this recognition is and we’re so proud of him. Ngā mihi!...

MyIR temporary shutdown

Heads up: Inland Revenue is running a planned disaster recovery test over two weekends in November when some of its online services will not be available, including myIR.The testing will happen on:Saturday 16 November from 3pm until 9am Sunday 17 NovemberSaturday 23 November from 3pm until 9am Sunday 24 NovemberServices that will not be available during testing are myIR, gateway services and Inland Revenue's self-service phone line....

Eagle Eye Property Insights - Issue 24

Most people have heard of a reverse mortgage, but a home reversion scheme isn’t something a lot of people know much about. A home reversion scheme allows a homeowner to sell part of their property in exchange for a lump sum or regular payments. Some of the benefits include enjoying a more comfortable retirement, the ability to pay for ongoing home maintenance costs, still being able to share in the property value increases, and no interest payments (there is no lending). Like everything, ther...

Inland Revenue staff are making unannounced visits

The businesses that will be visited have been identified from the list of nearly 7,000 anonymous tip offs IR receives each year. Businesses with goods and services of lower price points and businesses that handle significant amounts of cash are more at risk of these visits. If you want to make sure your books are in order, contact us today. ...

Eagle Eye Property Insights - Issue 23

Did you know Hawke’s Bay was one of five regions where property sales activity increased in September 2024? The sales count of 221 was the highest since November 2020 and was up 2.3% on August 2024 and a whopping 26.3% on September 2023. The biggest driver has undoubtedly been the reduction in interest rates but also more favourable tax policies starting to kick in.I recently came across a company that already owned several residential rental properties and recently added a commercial property...

Capital gains tax is back on the agenda

Capital gains tax could be back on Inland Revenue’s agenda again, as it’s consulting on the future of the tax system as part of its next long-term insights briefing to the ministers of revenue and finance. IR says it wants to open discussions on the challenges the tax system faces and possible options to address them. Labour says it is looking at its tax policy and is considering capital gains, wealth or capital income taxes. If you’d like to discuss how current tax rules apply to your ass...

Eagle Eye Property Insights - Issue 22

1. Capital gains tax has reared its head again following a media interview with the CEO of ANZ. Speaking with some property investor colleagues over the weekend we all agreed it is just a matter of time before some form of comprehensive capital tax was implemented. It raises some interesting questions such as what assets it would apply to, would the family home be taxed, would it be retrospective, what other options to collect taxes could be considered and the fairness of people’s differing si...

A friendly reminder from us

If you have staff leaving your company, please remember to cancel their myIR access. Regularly reviewing your agency myIR logons is an important step in preventing former employees from accessing sensitive information. Owners and administrators can manage myIR logons and access. Walsh & Associates will never ask for your passwords regarding your myIR logins....

Eagle Eye Property Insights - Issue 21

1. IRD was allocated $29 million in the 2024 Budget for compliance, targeting those people who have not met their tax obligations. So, do you have audit insurance to protect you? Audit insurance is an insurance product that covers professional fees incurred if IRD enquires about returns filed or audit your business.Compliance with property tax laws is becoming more complex by the day. The costs of accounting and tax advice to respond to IRD can mount up quickly. If you don’t already have cover...

Eagle Eye Property Insights - Issue 20

1. “Excess rental deductions” in your income tax return, what are they? They are a net loss from your rental property. In the 2020 income tax year the government introduced ring-fencing rules stopping property investors from offsetting a loss on their property against their personal income. Excess rental deductions are carried forward to the next income tax year. They can be used to offset future rental profits before income tax will need to be paid. What most people don’t know is that the...

Eagle Eye Property Insights - Issue 19

1. It is like a light switch has been turned on and there is an air of confidence back in the property market. Adrian Orr from the Reserve Bank has cut the official cash rate. It seems like that was what the market was waiting for. I am told locally that numbers attending auctions and open homes are up. I hear a lot of people saying reduced interest rates will mean prices will start going up. I will be watching closely to see what happens. One thing to remember though is that every property cycl...

Eagle Eye Property Insights - Issue 18

1. We all knew it was coming however reality hit when opening the letter or email. I’m talking about the local council rates for the July 2024 to June 2025 period. Hastings went up a whopping 21% which does factor in some of the cyclone recovery cost. Did you know rebates are available under certain circumstances? You can also choose to pay weekly or monthly, which while doesn’t help reduce the cost, it may help with cashflow.2. I see numerous properties for sale not marketed with a price wh...

Eagle Eye Property Insights - Issue 17

1. The ball is in your court: Have you noticed some new residential real estate agencies popping up in Hawke's Bay? Tall Poppy, Co-Lab and 360 Realty just to name a few. Some of the real estate agents working for these agencies have come from other agencies. When weighing up who to list with, you need to view the pros and cons such as a smaller agency with lower fees versus a larger agency with wider market reach.2. Team NZ verse the big international players: Banks reducing interest rates have ...

Eagle Eye Property Insights - Issue 16

1. The Reserve Bank met on10 July 2024 and kept the Official Cash Rate (OCR) at 5.5%. Whilst the OCR may not have been reduced, it’s the comments made by the Monetary Policy Committee we need to take note of and that is that inflation is heading in the right direction. 2. There has been a noticeable increase in the rental properties coming to the market since the change in the Brightline Test from 1 July 2024. Traditionally, the market slows down in winter and bounces back in spring. With the ...

Eagle Eye Property Insights - Issue 16

Did you know the government is proposing to allow building structures of up-to 60sqm in residential and rural zones to be exempt from building or resource consent? The building structures will need to meet certain criteria (yet to be determined) but it’s a step in the right direction to providing more affordable housing for families.We have recently had a couple of clients wanting to know how excess rental property deductions/expenses (essentially a rental loss) can be utilised now they have s...

Eagle Eye Property Insights - Issue 14

Sometimes as a property investor you may want to withdraw some funds for personal use-usually from the sale of a property. Several clients I have worked with say they don’t understand how their shareholder current account works in a company. There can be income tax consequences from withdrawing personal funds from a company shareholders need to be aware of. Please speak to us before withdrawing funds in this situation.I often hear from landlords who manage their own properties say that they ke...

Eagle Eye Property Insights - Issue 13

July is going to be a busy month. The new Brightline Test changes take affect from 1 July 2024. The Reserve Bank has also announced that the much talked about Debt to Income Ratios (DTIs) will be activated from 1 July 2024 and the Loan to Value Ratios (LVRs) changes also take effect from 1 July 2024. It feels like we are being given something in one hand and having it taken away from the other. I try not to listen to the media a lot these days to filter out all the negative press. The perfe...

Eagle Eye Property Insights - Issue 11

Most property investors are aware the “No cause eviction” 90 days notice is coming back in for tenants. This is one of several tenancy law changes which are going to be enacted early in the 2025 calendar year. There are other changes around notice periods. Tenants will only need to give a landlord 21 days notice to end the tenancy (currently 28 days) and landlords will only need to give 42 days’ notice to sell, move back in, develop or renovate.Deadline sale, By Negotiation. One of my bigg...

Eagle Eye Property Insights - Issue 12

Should you only own properties close to where you live? It must be a great place to invest because you live there right? Knowing local property management businesses and tradespeople can be an advantage too. However, owning properties in several locations can reduce your risk by exposing you to property markets which are at different stages of the property cycle. Not only that, different locations are also exposed to different climate issues which must be considered in this day and age.Speaking ...

Eagle Eye Property Insights - Issue 10

Who has pets in your rental properties? You need to be aware the tenancy laws are looking to be changed in the next month or so. What’s changing? The introduction of a pet bond, making tenants responsible for damage and requiring a landlord’s consent for a pet. This should open the door for more landlords to take on tenants with pets, but it may cost them to do so.What type of property improvement costs can be claimed 100% as repairs and maintenance? This is a common scenario we often come a...

Eagle Eye Property Insights - Issue 9

Interest deductibility has recently been a hot topic of conversation, hasn't it? The Government recently clarified the tax position that property investors will be able to claim 80% of their interest in the 2025 financial year and 100% from the 2026 financial year. This is a huge win and I believe when interest rates start falling, first home buyers will be competing with property investors again when looking to buy.I recently heard that the number of listings in the whole Hawke's Bay property m...

Eagle Eye Property Insights - Issue 8

1. I read many articles where people often ask “is now a good time to buy property?” .. Consider this - Just about everyone I talk to who has sold a property in the past say they should have held onto that property don’t they?2. I’ve had clients who own rental property tell me because their property costs them money they don’t need to return the income to Inland Revenue. That is only half the picture however as depending on the circumstances the tax laws may in fact facilitate them to ...

Eagle Eye Property Insights - Issue 7

1. As a property investor your rental income is the lifeblood of your business. With ever increasing costs such as interest rates, insurance, maintenance and reduced interest deductibility its important rents are monitored regularly and bought into line with market rent. I find investors who manage their own properties tend to under-rent their properties. An investor may be keeping the rent low for a good long-term tenant but at the end of the day they are not doing their tenant any favours if t...

Eagle Eye Property Insights - Issue 6

1. I recently read an article that discussed the different sources of data that report property prices/values and which one is more accurate than the other. I was blown away by the shear variations which can occur due to timing and certain exclusions and inclusions. My advice-talk to the property professionals such as a valuer and real estate agents if you’re looking to sell.2. The property tax laws can be complex so it’s important to get the right advice from the beginning to avoid a nasty ...

Eagle Eye Property Insights - Issue 5

1. We often have enquiries from clients wanting to register for GST when purchasing lifestyle property. While it’s understandable there can be substantial costs clients would like offset by some cashflow (from GST refunds), there are a lot of considerations that need to be taken into account. My advice - talk to your accountant FIRST!2. According to Tony Alexander’s December 2023 Mortgage Advisors Survey there is a slight easing in bank lending criteria and test rates. More investors are als...