Buying or selling an investment property can be an exciting and daunting time. We understand that there are different reasons for making this decision and will work with you to make the process an easy one.
Buying an Investment Property
With the New Zealand Government's changes to ownership and tax implications as they apply to investment property, our experts will make sure that all the aspects are explained to you as you progress.
There are plenty of things to consider:
The Bright-Line Test
The bright-line test was revised by the NZ Government, with changes to the rules effective from 27 March 2021.
In its simplest form, the bright-line test applies when you sell a residential property within a set period after purchasing the property.
If you sell your property within the stated period, you will have to pay income tax on any profit made on the property. What is considered profit is based on a few factors. There are exemptions to this rule (for instance, if you live in it as your main home, or if you have inherited the property).
There are four main changes to the rules:
- The bright-line test period now runs from when you enter into an agreement to purchase a property until the date that you enter into an agreement to sell it (it used to run from settlement to the date of the agreement to sell).
- The time period for the test is now 10 years, rather than 5 years.
- There are changes to the main home exemption (this was where if it was not your main home for 100% of the time you owned it, then you could be taxed on the portion of time it was not your main home).
- The new time period of 10 years does not apply to new builds.
You can read more in our Updated Bright-Line Test article.
Buying property in NZ if you live overseas
If you're wanting to buy property in NZ, but are not a New Zealand citizen you more than likely will need the consent of the New Zealand government.
Those in New Zealand on a working or student visa, here on holiday and don't want to leave, or just a regular overseas person, are all currently unable to purchase land here. For more information on eligibility, click here.
When you've made the decision to buy or sell
Once you've made your decision - talk to us. We use a system called ConveyIT, which was developed by us to enable us to manage your home purchase in a streamlined and easy way. This means we can help you at a competitive price and make sure you're kept up to date as things progress by email, or text message, or both, so you don't have to chase us up.
When you're buying or selling, you'll receive:
- Free explanatory notes on buying and selling a house
- Free Home Moving Pack including our easy moving guide and checklists
- Automated communication by email and text messaging at key milestones
- Up-front fees for standard transactions
Our fees for residential conveyancing will depend on the complexity of your purchase, including whether a mortgage or other loan is involved, whether you are using KiwiSaver, how many houses we are dealing with (are you buying and selling?) and other considerations.
Before proceeding with your work, we will outline our fee estimate so you understand what you can expect. For straightforward residential conveyancing transactions, you can expect a fee from $1,000 for sales and from $1,100 for purchases (excluding disbursements, which will usually add between $250 and $400 to this cost).
If you'd like a fee estimate or want to talk about how we can help you, please contact one of our Property specialists below: