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Eagle Eye Property Insights - Issue 43

SBS Bank have targeted first-home buyers in a bid to compete with the top four Aussie banks. SBS are offering a mouth-watering 3.99% fixed for one year. But it wasn’t just the interest rate that caught my attention. Along with a $2,000 cashback (which does have a three-year clawback), SBS will contribute $1,000 towards a home insurance policy and $1,000 towards a KiwiSaver plan. The big question is, will we see any of the NZ banks try to match this? In my experience, the real value of usi...

Eagle Eye Property Insights - Issue 42

Investing in Airbnb properties can be attractive due to the high nightly rental they can command for properties in great locations. However, investors need to be aware of all the costs involved. Along with the usual property costs, there can be additional income tax and GST compliance issues (especially if there has been private use), along with several Airbnb provider costs. These can include management fees, transaction fees, booking channel fees, lockbox rental fees, owner stay fees, and clea...

Eagle Eye Property Insights - Issue 42

 It seems as though we could be in a buyer’s market for some time. But just because you have the capacity to buy, should you buy? As an investor, it is easy to get caught up in the moment by adding to your portfolio. Some things making it harder, which you may want to consider, include whether prices will fall if supply keeps increasing, how long it will be before you see a capital gain, and whether a better property deal may come along. If you keep waiting, will there be more competition...

Eagle Eye Property Insights - Issue 40

I recently read an article about Zack Kendrick (a welder fabricator from Hamilton) who bought his first home when he was only 19. It was such a feel-good story. What were some of the lessons I took from it? Firstly, nothing comes without hard work. Zack worked 60 hours a week, saving $27,000 over a two-year period.Secondly, nothing comes without sacrifice. Zack didn’t socialise much with his friends. Also, rather than borrowing money for a new car like his friends, he persevered with his old c...

Eagle Eye Property Insights - Issue 39

“Flippers” are back in the property market. So, what are flippers and why are they back? A flipper is someone who buys, renovates and on-sells a property for a profit. Flipping is a form of property trading, as opposed to property investment, which is for the long term. Some of the conditions making flipping more attractive in the current climate include the lower interest rate environment, plenty of property stock on the market and reduced prices.We recently came across a situation where a ...

Eagle Eye Property Insights - Issue 38

Historically, in a low-interest rate environment, you could reasonably predict this would lead to an increase in property prices — but that hasn’t been the case recently. Why is that? A few possible factors could be at play, including the cost of living still being relatively high, a period of population stagnation, and ongoing uncertainty in international markets. There may also be a significant number of people still on high interest rates, waiting for the bottom of the market before refix...

Eagle Eye Property Insights - Issue 37

Private residential property investors used to have a 120-day timeframe to comply with the Healthy Homes Standards when they purchased a new property that wasn’t up to standard. When I recently purchased a rental property from a homeowner, I found out this no longer applied and that the property must comply with the standards by 1st July 2025. This may become a real problem for some property investors trying to get the necessary work done the closer we get to that date. It may also mean that p...

Eagle Eye Property Insights - Issue 36

Confidence appears to be returning to both the local and national property market. I find this interesting given some of the headwinds, such as the current labour market and the trade wars going on overseas, to name a couple. The one silver lining for property investors in all this uncertainty is the drop in interest rates, with sub-5% rates now the norm. Couple this with the fact that from 1st April 2025, property investors are allowed to claim 100% of their mortgage interest, and you can begin...

Eagle Eye Property Insights - Issue 35

Did you know there has been a change to the granny flat rules? As a refresher, the new law coming into force in 2026 allows a granny flat to be built without a building consent. Now, a dwelling up to 70 square metres will be able to be built, when this was previously 60 square metres. Whilst not a huge change, it will possibly now enable a two-bedroom dwelling to be built where only a one-bedroom dwelling was possible prior to that.In the last issue, I touched upon some issues to consider when l...

Eagle Eye Property Insights - Issue 34

At present, the New Zealand property market has the highest number of listings in 10 years, and properties in some price brackets are taking longer to sell. If you have a property that has been on the market for more than a month, most real estate agents will likely suggest a price reduction. However, there are other strategies to consider, such as changing the pricing method, ensuring your property is well-presented for open homes, reviewing the timing and days of open homes, increasing social ...

Post-31 March checklist: Get your tax returns ready

Here’s what you need to do: Gather all financial documents: receipts, invoices, bank statements. Reconcile transactions in your accounting system and check for errors. Review outstanding debts and overdue payments. Take stock of inventory and reconcile records. Provide loan & credit card statements (1/4/24 – 31/3/25). Send bank statements showing the closing balance as of 31 March 2025. If you have any unpaid sales invoices that won’t be paid (“bad debts”), let us know in your ann...

Eagle Eye Property Insights - Issue 33

When recently viewing photos of a local property on the market, I saw photos of the real estate agents sitting down at the property having a cuppa! I’ve seen a lot in real estate over the years, including real estate agents putting photos of their brand-new luxury cars in the advertising, but nothing quite like this. It made me think how this may be portrayed by not only prospective buyers but also property owners looking at who they can use to sell their property in the future.If you’re a s...

Eagle Eye Property Insights - Issue 32

🏠 Every day, there seems to be another headline of a bank lowering their interest rates. Now could be the best time to refinance any high interest lending you have to not only take advantage of lower repayments but lock in great rates for the next couple of years. Like the property cycle, interest rates also have their cycle, and we may be coming to the end of the current cycle.🏠 Have you heard about the Kāinga Ora First Home Loan? Friends of ours recently purchased their first home utili...

Eagle Eye Property Insights - Issue 31

Last week we saw the first bank offer a sub-5% mortgage rate, with Westpac offering a 4.99% fixed rate for 3 years. The big question will be whether this will be matched by other banks and whether it was in anticipation of a reduction in the official cash rate this week? Regardless, this must be tempting for a lot of borrowers refinancing or even looking to refinance. A lot of people have a perception that having boarders, homestay students, and flatmates won’t incur an income tax liability f...

Eagle Eye Property Insights - Issue 30

Are you currently only using one lender for your rental property borrowing and looking to grow your portfolio? Using more than one lender or “split banking” may be worthwhile exploring. Whilst it does add another layer of complexity, it can have some advantages. It can provide more lending options if one bank says no, and by not having all your properties cross-collateralised with one lender, you may be able to keep some of the proceeds from a property sale.The first Reserve Bank's official ...

Eagle Eye Property Insights - Issue 29

Weatherside cladding on properties can put a lot of prospective buyers off. I recently viewed a 2-bedroom leasehold unit with weatherside cladding that had been on the market for 9 months. So, what’s all the fuss about? Weatherside is the brand name of a cladding product made from wood and glue in the 1970s and 1980s. If well maintained there is nothing wrong with the product. However, if chips and cracks appear and/or painting isn’t kept up-to date moisture ingress will make the boards swel...

Eagle Eye Property Insights - Issue 28

Here are some ideas to consider as you assess your property investments and prepare for the future.Review any unfinished or outstanding projects from 2024Assess the financial performance of each of your rental propertiesMake a list of new projects with accompanying action plansIdentify properties that require maintenance in the near futureConsider whether you would like to purchase another propertyConsider whether you would like to sell a propertyThink about getting your finances in order to obt...

Eagle Eye Property Insights - Issue 27

Investors are definitely back and taking action in the Hawke’s Bay property market. What’s been the driving force behind this? For an investor, it’s all about whether the numbers stack up. The IRD's kicked it off with changes to the Brightline Test and the interest deductibility rules. Prices have since bottomed out and the Reserve Bank is finally coming to the party, reducing interest rates.Most of us use free online valuations such as OneRoof, QV, or homes.co.nz to get a rough estimate ...

Don't get caught in the holiday chaos

The end of 2024 is just around the corner which means the end of the financial year is also fast approaching. Now is a good time to get organised for March 2025. There are a few simple steps you can take now to make the next few months smoother. Gather all your financial documents, including receipts, invoices, and bank statements.Ensure all your transactions are reconciled, and there are no errors or discrepancies in your financial statements.Review your accounts and identify any outstanding de...

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...