APIA Blog

RSS Feed

CGT on own homes?!

Monday, March 04, 2019

IMG CREDIT: UNSPLASH

This week's question comes from Pat (paraphrased): 

I heard something about homes being subject to CGT under the current proposal if it is past a certain size. The property I am thinking of is on 5 acres with approximately 2 acres of grass and the rest in bush. There is no income from the property. Is this correct and wouldn't this affect many life-style type properties? 

Amanda Watt from Shortland Chartered Accountants Limited kindly responds below: 

At this stage, the CGT on own homes will be everything over the 4500sq metres.

From the report it looks like you would have the property valued, so theoretically the "bush" part may have a lower value so the capital gains on that would be lower than the house portion. Of course, this will rely on a valuation being obtained both at Valuation Day and when its sold to apportion it.

This Q&A offers general information and is not intended as legal, tax or accounting advice. We recommend that you seek professional advice to address your personal situations when appropriate.

Do you have any property investment related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

Recent Posts


Tags

renovation Property (Relationships) Act interest only Question and answer gluckman report Case study equity property value khh How to trespass HSWA rta debt enforcement meth contamination sublease rental market education rental wof short-term rental letting fee Sponsored post market warm up new zealand buying rules p lab airbnb property maintenance ocr bond form clnz Investor story winz warren buffett tenancy issues Q&A cash-flow meth Gluckman business covid-19 parry v inglis television negotiation government Guest blog interest rates off the plan shower dome damage development Market report lvr house prices ask an expert positive cash flow rent increase rent tenancy services banking sale and purchase bad tenant property management twg report rta reform Holler wealth creation heater investor watercare LIM buyer's agent inspection property cycle heating fixed-term tenancy minor dwelling smoke alarm capital gain Jeff Bezos Level 4 productivity extractor fan robert kiyosaki rent arrears asbestos tenant trust tenancy tribunal property DTI finance boarding house election 2017 insurance termination financial advisers act reserve bank cat Must know first home buying CCC tax HHS subdivision skill shortage ird Editor's Choice advice mindset holiday house principal and interest ring-fencing nzpif Tribunal case study trademe data security housing affordability return RTAA 2019 unitary plan sale and purchas recycling equity partners CoreLogic water bill relationship building RBNZ housing bubble speculator legal cgt mortgage initio income TCIT ventilation privacy Landlording Must knows investment strategy bond Kris Pedersen Mortgages and Insurance management structure anz beginner investor buying Standards New Zealand personal growth insulation auckland HHGA scotney williams Investment tip auckland council market rent wins maintenance worksafe landlord letting

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited