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. Mixing residential and commercial properties in the same entity can add another layer of complexity. Residential and commercial rental activity income and expenses need to be separated in the financial reports and tax returns. There can also be potential GST implications. Something to keep in mind.

With New Zealand’s current housing shortage of approximately 45-50,000 homes, I was pleased to hear the government is looking to underwrite the construction of new private houses. Applications for a time-limited scheme opened for interested developers on 7 October.