New Zealand’s property bubble shows no signs of bursting and more people are selling their home or investment property privately than ever before. But there are a lot more things to do if you take that path.
A recent news story on the front page of the stuff.co.nz website featured two Wellington couples who were selling their dream home after owning and living in it together for seven years. One comment suggested the story normalised the fact that “housing is now unaffordable for most Kiwis.” The story also normalised the fact that the current generation are more open to property sharing than in the past.
If you frequently buy and sell property, you may want to keep a close eye on Inland Revenue’s review of some property tax rules that was announced in September 2019. One area being targeted is the use of the ‘main home exemption’.
Tiny houses are becoming extremely popular nationwide as property prices rise. Less energy consumption, lower environmental impact and cheaper housing, while still leaving room to develop other buildings on a single normal-sized plot. Win-win, right? Not quite.
When a relationship comes to an end, the divvying up of relationship property is no walk in the park. Often it can take months, if not years, for disagreements to be resolved. It’s an emotionally charged time, and it doesn’t help that the law in this area has some relatively blurred lines when it comes to the division of relationship property.
Generally speaking, GST on a property sale and purchase between two GST-registered entities results in a ‘GST neutral’ position for both the seller and the buyer. It’s essential that the sale and purchase agreement contains the correct wording, particulars and information in respect of the GST position of the parties to the agreement.
A recent Court of Appeal decision highlights the need for anyone selling a property to be very careful about the statements they make to a potential purchaser.
Following on from last week’s blog exploring some of the key considerations when buying property, this time we’re looking at some of the important factors vendors have to stay across.
