Restructuring ownership of your existing rental property investment

If a rental property investment makes a substantial gain on the original purchase price when sold to buy a new investment property the new equity can increase your ability to borrow based on the new value.
This disposal is caught under the ‘bright line rules’ and the gain on sale is taxable.

Traps when selling the family holiday home

A privately owned holiday home can be transferred to a family trust to provide protection to this asset.
If the trustees decide to sell the property less than five years later, then under the bright line test rules the gain on sale is taxable.

Buying or selling property at auction

If you are thinking of buying or selling an investment property now then auctions can provide the answer in the current cooler property market.
Sellers can still get good prices for their properties, especially if they are willing to negotiate with conditional buyers after the auction.
There are also opportunities for buyers to negotiate and create instant equity, particularly with vendors who are keen to exit the market.

Become a respected industry expert – this takes time

Select a market segment which you have some in-depth knowledge from past experience.
Research what is happening in that industry, write articles for publications, or seek public speaking engagements, speak out on industry issues, write Letters to the Editor.
Use social media and Linked In to signal your position as an innovator in your industry.
Keep your name and brand prominent.

Get referrals

This is an excellent way of winning more customers. Ask your satisfied customers for a referral. "If you know someone who would benefit with what I have told you about I’d appreciate the reference."

Form friendly alliances

Join up with a friend or another organization, perhaps one with an established customer base, especially one that complements or supplements your product or service.
For example a landscaper could link up with a builder, a handyman could link up with a cleaner or a fitness company could link up with a dietician.
Shared customer bases can be very productive.

“Skilled workers are in pole position and can expect pay increases in the coming year as businesses scramble to retain and recruit staff.”

According to Robert Walters New Zealand's latest salary survey, over 80 per cent of employees are confident of "plentiful" job opportunities in 2018, driven by a thriving economy and large government project roll-outs.

Last year salaries rose for nearly 60 per cent of professionals and, according to the recruitment consultancy's survey, 74 per cent expected a bump this year.

Source: Matthew Theunissen (NZ Herald)

What this means for employers and accountants:

Greater emphasis on staff training, staff retention, remuneration packages, home based offices, overseas recruitment and outsourcing globally. 

Recruiting candidates strong in Science and IT, more mechanisation with data processing equipment, graphics, CAD, smart phones, scanning.

Special packages including fringe benefits (FBT), glide time and contracting.

Another cut is expected in the OCR from the RBNZ on 23rd July, and probably another cut to follow later in the year. This should see shorter dated bonds performing well in the near term. However, it also means a lower interest rate for investors who wish to reinvest their maturing funds. Even after the fall in the currency last quarter, the RBNZ is keen to see it lower still, helping exporters and tourist operators. Longer-dated bonds will respond to economic data both locally and offshore. Domestically, the data has begun to slow from what were quite strong levels, while offshore it will largely be about the US and whether the economy there is seen to be strong enough to sustain higher interest rates. Shares are fully priced but still offer attractive dividends relative to bond investments. With the NZD considerably lower, there is likely to be offshore buyer interest in our market. 

Source: Financial Architects – Financial Planners August 2015

This list names tax payers who are owed cash that has been left untouched for six or more years in companies such as financial institutions and insurance companies, or is an unpaid wage or salary.

After six years of trying to locate a person, a company must hand over the cash to IRD under the Unclaimed Monies Act (1971). There is no time limit to when money can be claimed. The IRD has put together an alphabetical list of 18,500 people owned $21 million unclaimed cash. The site is easily accessed and is in alphabetical order: 

Just go to www.ird.govt.nz/unclaimed-money if you think they may have some of your money?

There is another huge list (still in paper form) of $57 million owed to 193,000 people from pre-2005, and not is accessible online.

Gilligan and Company Limited

PO Box 9606
Newmarket
Auckland 1149

Level 5
393 Khyber Pass
Newmarket
Auckland 1023
New Zealand

Ph +64 9 522 7888
Fax +64 9 522 7893

Email info@gilligan.co.nz

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Restructuring ownership of your existing rental property investment If a rental property investment makes a substantial gain on the original purchase price when...
Tips To Grow Your Business
Friday, 06 July 2018
Become a respected industry expert – this takes time Select a market segment which you have some in-depth knowledge from past experience.Research what is happening in that industry,...
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