Just as important as buying the right property is effective and efficient management of the property. An investor not only wants to maximise long-term capital growth potential but also wants to maximise the weekly cash flow and tax position.
For Australian investors, owning New Zealand investment property is even more tax effective. The Australian Tax Office allows investors to deduct any tax losses from their New Zealand property from their Australian taxable income. If structured correctly, it provides Australian investors with a sizable tax refund at the end of the financial year. We recommend you consult your accountant or contact us for further information.
Property managers are the most convenient way for an overseas investor to deal with all the day-to-day property management issues. Property managers promote and advertise your property, find and approve tenants, submit bond application forms and write the lease agreements. They'll also look after any maintenance issues such as repairs to a leaky tap or fixing the picket fence. They send frequent consolidated reports illustrating all cash inflows and outflows and take the hard work out of maintaining your property.
We can research and recommend a property management company for you, ensuring they meet the following criteria:
- Experience with overseas clients
- Below market vacancy rates
- Experienced staff members
- Competitive fees
- Comprehensive services
- Consistent rent reviews
We offer a firm commitment that your property will be managed according to your wealth creation strategy.
One of the biggest attractions of investing in New Zealand property is the investor-friendly tax system. There is no capital gains tax in New Zealand, no stamp duty, no land tax and no sales tax.
For Australian investors, changes in tax law over the past decade makes New Zealand investment property even more tax effective. The Australian Tax Office (due to a change in the Thin Capitalisation Rules) now allows investors to deduct interest costs from New Zealand property from their Australian taxable income. If structured correctly, it provides Australian investors with a tax refund at the end of the financial year. We recommend you consult your accountant or contact us for further information.
As a New Zealand Property Solutions client, we will submit your New Zealand tax return on your behalf and communicate with you throughout the year to plan your tax return.
Insurance is relatively cheap in New Zealand compared to other countries. The main type of insurance cover required for an investment property is home contents, building and landlords insurance.
New Zealand Property Solutions have undertaken detailed research of all the insurance companies and will provide the information and applications for your convenience.