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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...

Financial health check-up

Running a business can be tough—whether you're feeling the financial pinch or the numbers just aren't adding up as expected. A financial health check-up could be just what you need.This service is not just about the numbers; it’s a comprehensive review that identifies both the pain points and potential in your financial strategies.By identifying these issues early, we can help you implement corrective measures to stabilise and grow your business.Contact us today to schedule your check-up and...

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...

Financial year end: Tips to get you sorted

Before 31 March:Update your Xero details: Ensure all of your business details are accurate Bank Reconciliations: Keep your bank accounts up-to-date and reconcile any outstanding transactionsReview Financial Documents: Check for any outstanding invoices, bills, credit notes, or quotes and all transactions are recorded in Xero.From 1 April:Early Info Sharing: The sooner you provide your financial information, the quicker we can finalise your returns.Embrace Digital: Utilise online signatures ...

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 ...

Embracing efficiency: How it strengthens our work and your business

Timely Information, better results: When we have all the necessary information upfront, we can dive right into delivering results for you. It’s like having all the ingredients ready before you start cooking - it just makes everything smoother and faster.Understanding your needs: We’re here to demystify the accounting process for you. By working efficiently, we have more time to focus on explaining the 'whys' and 'hows,' ensuring you're always in the loop.Proactive approach: Efficiency means ...

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...

Eagle Eye Property Insights - Issue 4

1. The Government just loves creating more work for us accountants! For the 2023/2024 financial year landlords will be able to claim 60% of their interest expenses, the exact date this will commence is yet to be determined.2. The Reserve Bank recently noted in their latest OCR announcement that 20,000 borrowers were behind on their repayments and borrowers were paying an average interest rate of 5.4% when the current average was around 6.4%. There is still a lot of pain to come.3. The first sign...

Eagle Eye Property Insights - Issue 3

1. Recently I heard of some property investor friendly changes to bank lending policies such as a ten year interest only product and higher percentages of rental income applied to servicing to cover expenses . It could be a good time to talk to your mortgage broker!2. Do you own rental properties but want to have a crack at property trading or developing to make some extra money? If you’re thinking of going down this route please talk to us first. There are a whole set of different tax rules t...

Congratulations to Vaughan Walsh!

The team at Walsh & Associates wish Vaughan Walsh a huge congratulations on achieving 40 years practicing as a Chartered Accountant!Vaughan recently attended an awards dinner hosted by Chartered Accountants Australia & New Zealand at the Mission Estate Winery where he was presented with his award for 40 years practice as a Chartered Accountant.Vaughan began working professionally as an accountant 42 years ago, and through additional study and time practicing...

Eagle Eye Property Insights - Issue 2

1. Post-Election Optimism: Election night came and went on October 14, 2023, and from what I have hear there seems to be increased confidence in property investment circles. The air is thick with anticipation as we await the final government makeup and the specifics of policy changes. My hunch? We'll likely won’t see any shifts prior to April 1, 2024.2. Interest Deductibility Alert: Keep a close eye on the far-reaching effects of the Interest non-deductibility rules. We recently witnessed a re...

Eagle Eye Property Insights - Issue 1

Introducing our newest feature – regular property insights from our very own Graeme Eagle; our Walsh property expert and Senior Accountant. These updates are designed to help you stay informed about New Zealand’s dynamic real estate landscape – let us know if there’s something in particular you’d like to hear about!Market turnaround?: According to REINZ (Real Estate Institute of NZ), the NZ Property market bottomed out in May 2023. Things are on the up, but it will be a gradual climbMu...

Do you know exactly where your business is headed?

In the dynamic world of business, having a clear and unwavering vision of what you want is like having a compass leading your way. With a crystal-clear vision, you choose what aligns with your business and overall purpose.You sidestep the noise, honing in on actions that make your aspirations a reality.If that doesn’t convince you, here’s the benefits of knowing exactly what you want:Provides directionMaintains focus for informed decisionsIgnites motivationFosters efficient time managementEn...

Claiming home office expenses?

Did you know that claiming expenses for your home office can potentially save you on taxes? Many businesses may be missing out on maximizing this deduction or not fully understanding its scope.From rent/mortgage to utilities and internet bills, there are various deductible expenses. Discover the benefits of home office deductions and ensure you're optimizing your tax savings.Let our experts guide you through the process and ensure you claim what you deserve....

Demystify tax implications of grants and subsidies

Let's shed some light on this topic. Generally, these payments are non-taxable as they match expenses over time. However, it's crucial to understand that expenses covered by the grant are also non-deductible. If you've received a grant, it's important to ensure proper allocation of funds.Additionally, if you're registered for GST, returning GST on the claim is necessary. Not registered for GST? Then we’d suggest discussing the 'principal purpose test' with us.Navigating the complexities of gra...

Increase your bottom line with this simple strategy

Looking to give your business's profitability a significant boost? Let's talk about a simple yet powerful strategy: reviewing your supplier contractsBy regularly assessing and negotiating these agreements, you can uncover incredible cost-saving opportunities. Research alternative suppliers, flex your buying power, and consider long-term arrangements or bulk discounts. Every dollar saved directly contributes to your bottom line. Ready to take control of your expenses and drive your business's suc...