Tag Archives: news
Property tax rules changing in New Zealand
A new Bill to strengthen the property tax rules for buyers and sellers in New Zealand is being introduced which will help the taxman enforce the rules around real estate. The Taxation (Land Information and Offshore Persons Information) Bill contains proposed amendments to the Land Transfer Act and the Tax Administration Act. Buyers and sellers of property will be required to provide their IRD numbers at the time of property transfer. Those who are tax residents in another country will also have to provide their Tax Identification Number from their home jurisdiction. However, there will be an exemption for New Zealand residents’ main home. And to ensure our anti-money laundering rules apply, there will be a requirement for overseas people to have a New Zealand bank account to get a New Zealand IRD number. This will also apply to New Zealanders who have been out of the country for three or more years. ‘These measures provide extra information which will help Inland Revenue detect people seeking to avoid their tax obligations. When people try to get out of paying tax, it’s unfair to all those people who do pay,’ said Revenue Minister Todd McClay. According to Land Information Minister Louise Upston the proposals will see Land Information New Zealand and Inland Revenue collaborating to ensure fairer taxation of people buying and selling residential property for profit. The bill is expected to be reported back to the Parliament House in time to be passed in late September and it will take effect from 01 October 2015. McClay intends to release a public consultation document later this month seeking views on the introduction of a ‘bright line’ test which would make gains from the sale of certain residential properties sold within two years of purchase taxable. ‘Under this test an exemption will apply when the property is the seller’s main home, is inherited from a deceased estate or is transferred as part of a relationship property settlement,’ he explained. ‘Most people in New Zealand do the right thing and pay their tax. Inland Revenue will help you get it right, but for those who try to avoid paying, we’re making it harder to get away with it,’ he added. Continue reading
Average house prices static in England and Wales
Average house prices in England and Wales remained static in May but were 4.6% higher than a year ago, according to the latest Land Registry figures. This takes the average property value to £179,696, just under what it was at the peak of the housing market in November 2007. The data also shows that London and the South East experienced the greatest increase in their average property value over the last 12 months, both with a rise of 9.1% while the East and North East experienced the greatest monthly rise at 1.6%. Wales saw the only annual price fall with a decrease of 0.6% and also saw the largest monthly price decrease with a fall of 1.7%. The number of completed house sales in England and Wales decreased by 12% to 59,311 compared with 67,321 in March 2014. The number of properties sold in England and Wales for over £1 million decreased by 6% to 842 from 893 a year earlier. Peter Rollings, chief executive officer of Marsh & Parsons, said that while the monthly house price change was static, it is positive that annual improvements across the UK means prices are almost back to the November 2007 peak. ‘The post-election feel good factor will soon serve up higher prices or transaction levels, and the market is set for future growth given the improved buyer confidence and increased supply of properties we’ve seen throughout June. High end buyers continue to court prestigious London properties and, as a result, prices will continue to rise sustainably in central areas,’ he pointed out. According to John Goodall, chief executive of lender Landbay, it is good news that repossessions are retreating, household earnings are gathering pace, house price growth is positive yet sustainable and behind the scenes, mortgage lending is responding to all these factors with a growing sense of confidence. 'To keep this progress rolling, confidence must be backed by caution. Mortgage underwriting matters in the good times as much as the bad and risks need to be properly controlled. Strong fundamentals combined with high quality underwriting will bring new investment into the mortgage market from traditional sources of funding to retail investment through new peer to peer models,' he said. 'With time, a steady expansion of mortgage lending will be good for everyone. Rather than an unsustainable charge, the supply of new homes will feed on this solidity of demand from first time buyers and landlords. In short, there are no easy answers but the tide is turning for the better,' he added. However, Steve Bolton, chairman of Platinum Property Partners (PPP), said there should be concern that prices for many people are racing ahead of wages for most people. ‘This has stretched affordability, pushing a home purchase further out of reach for many,’ he added. He pointed out that the rental sector is likely to come under increased pressure as growing numbers of people look to it for longer term solutions… Continue reading
More new residential lets in the UK being agreed before tenants move out
An increasing number of landlords in the UK are able to re-let their property before their existing tenant moves out with the average property being let in 32 days, the lowest figure on record. So far in 2015 some 33% of all new lets were agreed while the property is still occupied, up from 27% last year, according to new research from Countrywide. The average let agreed while tenants are in place is equal to 105% of the asking rent, or an average of £35 a month more than the asking rent. With landlords still receiving rent from the vacating tenant, they are under less pressure to negotiate. In comparison tenants moving into an empty property have more room to negotiate on the rent, knocking an average of £21 a month off what the landlord was looking for. The research also shows that in London 51% of new lets are agreed while there is still a sitting tenant in the property, up from 41% in 2014. The level of demand from tenants in markets where the level of demand is highest and the time to find a tenant is shortest, means landlords are able to reduce the time a home is empty. Where a deal is agreed before the existing tenant leaves the property, there is an average of just six days between the existing tenant moving out and a new one moving in. 10% of the time a new tenant moves in on the same day that the existing tenant moves out. Where a property hasn’t been let prior to a tenant leaving the property, the first week of marketing is when landlords are most likely to achieve the highest rent. During the first seven days, the average let is agreed at full asking price, a figure which falls the longer a rental property is on the market. The first weekend after coming onto the market is when the majority of the most motivated would-be tenants view the property. In London’s fast paced rental market, fewer landlords need to wait until the weekend to find a tenant. Twice as many lets are agreed on a weekday in London than in any other part of the country. Every day a rental property is on the market without a tenant, the landlord is losing rent. If a deal is not agreed during the first week of marketing, landlords become increasingly receptive to offers. 98% of the cases where a landlord accepts an offer below the asking rent are after the property has been on the market for more than a week. In slower rental markets, generally outside of cities, the average landlord has to wait an extra 15 days to find a tenant willing to pay the full asking price compared to those letting a property in the city centre. ‘In larger rental markets, more new lets are being agreed well… Continue reading
