ARE AUSTRALIAN PROPERTY INVESTORS LOOKING ACROSS THE TASMAN? 

Written By Jodi Hodgetts

Recent tax changes in Australia has created fresh discussion around property investment strategies - and for some investors, New Zealand is back on the radar.  At our office, enquiry from Australian investors has increased with one investor purchasing a rental property last week.

 Australia

  •  Negative gearing is being limited to new builds, with older purchases grandfathered.

  •  Capital gains tax settings are tightening, reducing some long-term tax advantages.

  •  Stamp duty remains a significant upfront cost in many Australian states.

  •  Investment property taxes and holding costs are becoming a bigger discussion point for investors.

 New Zealand

  •  No stamp duty on residential property purchases.

  •  No broad-based capital gains tax system like Australia.

  •  Bright-line rules can still apply if a property is sold within the applicable timeframe.

  •  Rental losses generally can’t be offset against personal income under current NZ rules
     

For some Australians, New Zealand may now look simpler from a transaction-cost perspective. 

More information on investing in real estate in New Zealand can be found at sorted.org.nz

As always, investors should seek independent accounting and legal advice specific to their situation, but it’s interesting to see how changing tax settings can influence where people choose to invest.

Jodi Hodgetts
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