January 2018's Property Gazette
Will 2018 be a year of change?
Happy New Year! We’re looking forward to helping our clients achieve their property goals this year, including you! 2018 is set to be a year of change, with the implementation of new policies which will affect the property market.
Reserve Bank to Ease LVR Restrictions
From 1 January 2018, the Reserve Bank is easing up on the loan to value ratio restrictions. Banks will be able to lend up to 15% of new mortgage lending to owner occupiers who have less than a 20% deposit. In addition, 5% of a bank’s new mortgage lending can be to residential property investors who have a 35% or less deposit.
If you’re a first home buyer or investor who’d like to take advantage of the easing of LVR restrictions, give us a call today on 0508 466 356.
Changes to the Responsible Lending Code
Amendments to the Responsible Lending Code came into play in June 2017. Lenders are required to follow the Act and must:
- Be satisfied the borrower can pay the loan without hardship and the loan meets their needs
- Be accurate in their advertising and contracts to not be misleading
- Act reasonable and ethically in all dealings
- Not to use oppression
- Meet all other legal obligations to their borrowers
Have You Made the Correct Tax Declarations?
If you are receiving income from or living overseas, it’s important you have made the correct tax declarations. You need to let the IRD know what your tax residency is because NZ residents are required to pay tax on their worldwide income. You can learn about this on the IRD website and avoid any nasty tax surprises.
Will a Capital Gains Tax Happen?
The Labour Party campaigned on introducing a Capital Gains Tax, but have since said that no new taxes will be introduced until 2020. In the meantime, the Government has established a Working Tax Group to assess the implementation of such a tax.
This will not affect residential owner occupier properties, but rather investment property owners. According to the Labour Party website, the Working Group will “focus on measures that will address the imbalance in taxation on gains from speculation in property and income from other sources.” (Labour Party Website).
We’d be more than happy to discuss the implements such a tax may have on you. Fill in our Contact
Is Ring Fencing on the Way In?
The Labour Government has signalled an end to negative gearing of rental properties. This means investors will no longer be able to offset losses from one property onto other income. Instead investors will have to ring fence losses to individual properties, which is set to hit investors who own multiple properties the hardest. It is estimated this will lose investors around 20% of their loss tax deductibility each year.
Once again, from all of us at Advanced Mortgage Solutions, Happy New Year! We look forward to working with you throughout the year.
Scott is wonderful to work with, which made the hole process so much easier and stress free. Highly qualified highly recommended. In there for the customersKarla Botting - 06 December 2023
Scott was fantastic to work with, honest and hard working, went the extra mile on everything, explained the nitty gritty jargon into easy to understand. Got us a great deal on our mortgage, put us with the right people. All in all 6 stars, if your buying then definitely call Scott at AMS!!Hamish Neilson - 06 December 2023
I used Scott at Advanced Mortgage Solutions for my first home purchase and am currently repurchasing a property through him again. Has been absolutely amazing and made the process extremely easy. Would recommend to anyone looking for a mortgage broker in Christchurch!Stacy Kamo - 29 November 2023
Scott and the team at Advanced Mortgage Solutions are great! Very knowledgeable and they make the house buying process very simple and easy to understand. Cannot recommend them enough!Scott Harris - 20 November 2023
Friendly and personalized service. Always happy to answer all my questions and love getting to see Gus when we meet in-person.Lisa French - 20 November 2023