Do you need to pay tax on a property you have purchased in New Zealand? The Inland Revenue Departments state this depends on your reason or intention at the time you purchased the property. When the IRD decides whether or not you should pay tax on the profit from the sale of the property, intention is the deciding factor. If you purchased the property with the firm intention of selling it when prices rise to make a gain from the increase in the value the profit is likely to be taxable. However if you purchased the property to provide a home for your family, any profit from the eventual sale will most likely not be taxable. The test is to ask yourself “what was my reasons for purchasing this property” To be continued stay posted
Tag: Purchasing
A Cross Lease Title is also known as a Composite Title. In simple terms: The owner of a Cross Lease Title holds an undivided share as tenants in common in the fee simple of the whole of the land upon which the flats are erected. Essentially the share will depend upon the number of flats on the property. There is than a Leasehold estate with a Lease generally for 999 years for the flat itself, furthermore a nominal amount of rent @ 10c is contained in the Lease. When purchasing a Cross Lease Title it is very important that you obtain a copy of the Cross Lease Title and all encumbrances associated with the property prior to signing any Agreement for Sale and Purchase. Contact your Conveyancing Practitioner to obtain the search, they will ensure your interests are protected. Remember we can be contacted on 0800 2 87878 Happy Real Estate Warm regards
