The government has recently introduced new tests to improve property tax compliance when buying and selling property in New Zealand. Some have suggested that the true reason behind the tests is to curb property speculators and scare off foreign buyers. Regardless of this, the new tests are seen as an attempt to limit soaring house […]
Recently I have been discussing equity partnerships with some of my farming clients. I wanted to find out what makes an equity partnership successful. An equity partnership is a joint venture vehicle that allows two or more people to use their combined equity to invest in an agreed purpose. The rapid increase in farm land values has […]
A tenant who is entering into a commercial lease usually has a particular purpose in mind for which the premises will be used. Translating this into an appropriate ‘permitted use’ in the lease can be problematic. The ‘permitted use’ is often no more than a few words, but it is an important term that needs […]
Recently I was talking to a client who was worried about his elderly parents. Although still living in their own home they could no longer live independently. They had been assessed as needing full time residential care. My client was concerned about how his parents would be able to afford to live in a rest […]
The Environment Court’s decision in Lambton Quay Properties Nominee Ltd v The Wellington City Council [2013] NZEnvC 238 has given commercial property owners a steer as to how District Plans will be interpreted against the Building Act 2004, and the Resource Management Act (RMA) as to the ability to demolish earthquake prone heritage buildings. Key […]
In 1987 Mr and Mrs B established the B’s Family Trust. They advanced large sums of money to the Trust with debts back. For the 17 years prior to 2004, Mr and Mrs B each gifted $27,000.00 annually to the B’s Family Trust until the original debts were gifted away. Because no gift duty was […]
New clients recently asked me to review their affairs after one of them had received unsettling news about their health. Several years earlier their (then) Accountant had formed a Trust for them. One of the Trustees was the Accountant. With the help of their (then) Lawyer, they had transferred their house and their business premises […]
It is interesting to note that ASB has led the charge in withdrawing high LVR finance pre-approvals. We expect the other major banks to follow suit in short order. Our sources indicate that finance approval processing times for non-bank lenders who are not covered by the Reserve Bank restrictions have been pushed out due to […]
Insurance companies offering policies in New Zealand are now required by their reinsurers to change the basis of their policies. In recent times, home insurance has been arranged on the basis of full replacement using the floor area of your home. This has been criticised by reinsurers following the Christchurch quakes, because it has not […]
Recently a longstanding client came to see me about a guarantee she had been asked to sign on behalf of her son and daughter-in-law. The young couple were buying their first home and did not have enough cash to meet the Bank’s lending criteria. The Bank was asking for a guarantee from my client, to […]
