Posts tagged east tamaki
What puts buyers off a home?
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Presentation is key to attracting the best price and buyer appeal to the home. Here are a few key aspects that can put a buyer off purchasing a home:

Bad smells.
Prior to your first open home or viewing make sure your house is free of all pet smells, stale cigarette smells, stale food smells, damp smells or anything else that will give a negative first impression.
   
Clutter.
This is a recurring theme in any list of how to get your property sale ready and it can’t be overstated enough. Make sure all floors, surfaces, cupboards and shelves are free of piles of your own belongings, leaving only organised, purposeful items and one or two ornamental items that elevate the space rather than merely fill it. As well as making the house appear neat, tidy and well looked after, it will also help potential buyers visualise their own furniture and belongings in the property. If your budget allows you may also wish to consider having the property staged with rental furniture designed to appeal to your target market.

Dirt.
The need to clean might seem obvious but it’s worth getting a fresh set of eyes (such as your sales consultant) to let you know what needs work – or even a professional cleaner through the property. They will notice things you may not, but a good place to start is to do a thorough clean of all floors, walls, skirting boards, windows and sills, mirrors and tiles. Cleaning and decluttering also extends to the outside where you should make sure you have cleared any flotsam from the garden. Also make sure the garden is weeded, all mildew is waterblasted from surfaces and the fences and gates are well maintained.
   
Dampness.
Consider investing in a dehumidifier and give it a good workout before potential buyers view the property. Wipe any signs of mildew from walls, windows and sills. Make sure your bathroom feels light and well-aired.
   
Vendors on site.
As a rule potential buyers do not want you, the vendor on site during a viewing. It will make them feels as though they are guests in your home, rather than buyers at a viewing. They will feel less free to give the property a good investigation and imagine themselves living there.
   
Temperature.
It’s a bit of a tough one this as everybody is comfortable with different temperatures but try to avoid your property being too cold or too warm on viewing days. Aim for dry and comfortable.

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Do I need to pay capital gains tax on the sale of my home?
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The bright line tax property rule says you’ll pay tax when you buy and sell a residential property unless the home you are selling, is your main home.

It's important to note that for need to have used a property as your main home for 50% or more of the time that you’ve owned it and used 50% of the area of the property as your main home. For example, if you use 40% of a property as your home and 60% as a rental property, you can’t use the main home exception.

Another important note to make is that you can't use the main home exception more than twice over any two-year period.

This includes if the property is located overseas.

If the home is held in a trust, the main home exception can still apply if the house sold was the main home of the principal settlor of the trust (the person who has made the biggest financial contribution to the trust), or the principal settlor didn’t have a main home, and it was the main home of a beneficiary of the trust.he bright-line rule does not apply if you sell a property you inherited.

The bright line tax rule does not apply if you inherit a home

So, if the residential home you're selling is not your main home and you bought it from the 1 October 2015 to 28 March 2018, inclusive: the two year bright-line rule applies.
If you bought the property on or after 29 March 2018: the five year bright-line rule applies.

But whenever you buy a property intending to resell it, you’ll need to pay tax on any profit you make when you sell that property.

Before you pay the income tax you owe on your property sale, you’ll need to complete an income tax return. You’ll generally include the amount of property income you’ve earned in the “other income” box on your return.

You’ll also complete an IR833 Property Sale Information form and submit this along with your income tax return.

 

The competition heats up for Spring as an increase of listings hit the market

As we look at the statistics produced in this first month of spring, it tells us how the market has performed in September but also how this will likely influence property values as we move closer into summer.

Realestate.co.nz reported that there were 3,896 listings added on the site in Auckland (up 31.9% compared to September last year). In the regions (excluding Auckland), an all-time high national asking price for properties was recorded, with the average asking price across New Zealand standing at $690,733. Property value growth in the Auckland region has increased by 0.8% year on year, despite a 0.7% drop in the last quarter setting the Auckland median value at $1,047,415.

Buyer activity viewing levels are up reporting 855,326 unique browsers searching listings on the site across the country during September. New listings are higher than they were a year ago in Auckland — I see that number increasing further this quarter.

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In market feedback from investor groups, few existing landlords are thinking of responding to new regulations by selling their properties. Likewise, for existing home owners who are considering selling but require a higher sale price for their existing home in order to purchase their new home, affordability may encourage them to keep their property off the market.

Then there's continued competitive pressure in the mortgage lending market and further decreases to interest rates by some banks which add to the balance of a stable property market.

What does this suggest for the property market over spring into summer?
With affordability remaining a factor for some buyers looking to buy in the Auckland market and some sellers deciding to hold tight rather than list, my opinion is that the rise in listings over the next few months is not likely to go above normal levels that we traditionally see in this season. This should see Auckland property values and the market remain steady.


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