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Ross Barnett (Property Accountant)
Приєднався 19 вер 2012
Created by Ross Barnett from Coombe Smith Property Accountants (www.cswaikato.co.nz) to give great information for property investors.
If you are looking to buy a rental property, then check out the information in these videos and on our webite.
If you are looking to buy a rental property, then check out the information in these videos and on our webite.
Quick video example of South Island beach rental October 2024
Quick example of what the cashflow is like on a possible rental property, South Island Beach
Переглядів: 49
Відео
Ruapehu rental example October 2024
Переглядів 67Місяць тому
Quick video showing an example rental property, what is the cashflow like now and next 10 years. Plus some other things to consider.
Flaw with provisional tax for property investors affected by Interest Limitation
Переглядів 6124 місяці тому
How to pay less tax on 28th August 2024 without interest or penalties if you are a property investor affected by Interest Limitation.
Example of cashflow on a new Dunedin townhouse 30 July 2024
Переглядів 2204 місяці тому
If you are looking to buy a new townhouse, really important to understand the cashflow over first 12 months and expected cashflow over next 10 years. This example shows a large cash loss in year 1 and expected over the first 3 years, which could cause a property investor major issues.
Personal house becoming a rental property
Переглядів 4485 місяців тому
Do you have a personal home, that you are looking at turning into a rental property, and then buying a new personal home? If so often the cashflow is not as good as you think! Worth watching this 5 minute video about how to look at the cashflow and how often the overall cashflow on your personal home becoming a rental isn't good.
Buying personal house to become rental short term June 2024
Переглядів 3386 місяців тому
John and Sarah have just purchased a new personal home, and sold their old one. But they are going to rent in their current area for 3-12 months, while their child finishes school. So they will rent out the new property. Video goes through likely cashflow and tax.
May 2024 - example of cashflow on existing rental
Переглядів 3256 місяців тому
Ross goes through the expected cashflow on an existing rental advertised on Facebook. What does the cashflow look like first year, what is expected over the next 10 years. What items would you want to investigate further and make sure you covered in due diligence? Some tips to reduce tax. #nz #hamiltonnz #property #propertyaccountant #propertyinvestment #propertyadvice #propertyaccounting #infl...
May 2024 - Example of cashflow on new rental
Переглядів 3016 місяців тому
Example of cashflow on new townhouse in Lower Hutt, 2 bedroom, 1 bathroom. Expected cashflow now, next 3 years and next 10 years. Some key things to review and consider if buying a rental, and some great tips. #nzproperty #property #propertyaccountant #propertyinvestment #savetax #nzpropertyaccountant #nzrental
Repaying shareholder current account or beneficiary current account
Переглядів 7107 місяців тому
Do you want to pay less tax on your rental properties. This is one example of a possible restructure where you can legitimately move debt from personal to rental properties, and gain a tax saving. If $300,000 debt, at say 6% to be conservative, that is $18,000 interest per year or a $6,000 approximate tax saving per year! #property #savetax #propertyinvestment #propertyaccountant #nzproperty
Should you fix or float, and the Maths on Interest Rates
Переглядів 2188 місяців тому
Comparison of interest paid on floating compared to fixing for 6 months. Other examples of using Maths to compare Interest Rates
Brightline changes and 3 examples 150324
Переглядів 4948 місяців тому
Finally have confirmation about Brightline changes from 1/7/24. Key thing NOT to do. 3 Examples - 2 caught and final one no brightline. Final example really clarifies dates Under 7 minutes, so short and to the point.
Another interest limitation change 10/3/24
Переглядів 1769 місяців тому
What a joke. Sunday and another change to Interest Limitation. Existing purchased 26/3/21 and before, now 50% for 1/4/23 to 31/3/24, and then 80% from 1/4/24. Existing purchased 27/3/21 and after, is currently 0%. Big issue or risk is what happens to these from 1/4/23? and from 1/4/24?
Big GST risk with Airbnb or short term accommodation
Переглядів 6759 місяців тому
Risk of losing hundreds of thousands of dollars through a GST issue. If you are short term accommodation provider (Airbnb for example), you need to be aware of this risk. Large risk for NZ property investors who rent out their rentals short term.
Why is a $32,363 cashflow loss better than a property with a $2,015 cashflow profit?
Переглядів 32410 місяців тому
Quick 5 minute video explaining how to compare properties, and key concept when reviewing your rental portfolio.
Example of Rental cashflow 191223
Переглядів 25911 місяців тому
Simple video looking at a rental advertised on Trade me (first one I could find), what is the cashflow now, over next 2-3 years with expected higher interest rates and over 10 years. This rental has an added issue.
Does this property trade make a $500,000 profit?
Переглядів 18811 місяців тому
Does this property trade make a $500,000 profit?
Amazing news - Interest limitation expected changes
Переглядів 227Рік тому
Amazing news - Interest limitation expected changes
National proposed rental property changes august 2023
Переглядів 201Рік тому
National proposed rental property changes august 2023
Should you fix for 1 year? 2 or 3 years?
Переглядів 691Рік тому
Should you fix for 1 year? 2 or 3 years?
Example of how Trust tax rate change could cost you $60,000 in extra tax!
Переглядів 185Рік тому
Example of how Trust tax rate change could cost you $60,000 in extra tax!
50% Interest limitation example April 2023
Переглядів 276Рік тому
50% Interest limitation example April 2023
What is the cashflow on a new build rental in February 2023?
Переглядів 598Рік тому
What is the cashflow on a new build rental in February 2023?
Are you looking to get started in property investment or buy a rental?
Переглядів 132Рік тому
Are you looking to get started in property investment or buy a rental?
Hey, thanks for the video. Quick question, do you have a spreadsheet we could use to check our own properties?
How can I get access to this Excel sheet
Hi, unfortunately we only provide this to our clients.
Hey Ross, great video, thank you! Question - am I correct in thinking you are excluding rental income tax from your forecasts? I see you have a note there regarding 80% interest deduction given that's the ruling currently for a property purchased from this FY onwards, but am wondering why you wouldn't include this cost, even using an assumed 33% tax rate on that 20% that's not deductable? Cheers
Shows how Labour's Kieran McAnulty is pushing it uphill when he's trying to force investors to buy only new properties.
What about rentvesting and waiting for more of a sellers market
it depends on your risk level, and how much you want to gamble on capital gains. If not a great rental, could be better to sell, take the loss, but then buy a better rental, also at a discount in this market. So replace with better performing rental.
If you are looking at turning your personal house into a rental or buying a rental, a great starting point is a free chat with Ross. You can book a free chat, at the top of this link linktr.ee/RossBarnett
What tax disadvantage / advantage i will have if i rent 2 rooms (long term rent / borders) of my own house while i leave inside the same . I owned the house for 12 years and just rent the rooms for the last 1 year ?
Hi, I had replied to this, so hopefully you don't get two replies. Boarders need to included regular meals for tax purposes. So most are really flatmates, which is taxable income. But also means you can claim a portion of expenses. - no interest limitation rules - no ring fencing, so if a loss, the loss can offset your personal income and get a tax refund.- - chattels valuation and depreciation is a great trick !
@@Propertyaccountantrb 1.Can get Personal income loose , i got that one . 2. Due to high interest rate our rental investment ( in LTC ) need it to top up every week $260 to cover the mortgage , can our flatmate at home transfer the money to the rental account is that an issue ? ( Home owned by both of us Husb. & Wif. And LTC own by us )
@@Aupm-1 They are separate entities, so ideally would have a separate bank account for LTC, and separate bank account for flatmate income. Will need to complete separate financial statements and tax returns for each entity
@@Propertyaccountantrb Thanks i do subscribed to you on UA-cam and FB
Hi Ross does this work for LTC's too? Or only ordinary companies?
Hi Haley, this works for Normal (Ordinary) Companies, LTC's and Trusts. Can be a great and easy trick!
Hi Ross, does this work for LTC's too? Or just ordinary companies?
A free chat with Ross can be a great starting point if you have property questions or queries, or just not sure what is the next step. Free Chat with ross is near the top of our Link Tree, coombesmithlifetime.as.me/OnlinePropertyAdvisoryMeeting
A free chat with Ross can be a great starting point if you have property questions or queries, or just not sure what is the next step. Free Chat with ross is near the top of our Link Tree, coombesmithlifetime.as.me/OnlinePropertyAdvisoryMeeting
A free chat with Ross can be a great starting point if you have property questions or queries, or just not sure what is the next step. Free Chat with ross is near the top of our Link Tree, coombesmithlifetime.as.me/OnlinePropertyAdvisoryMeeting
A free chat with Ross can be a great starting point if you have property questions or queries, or just not sure what is the next step. Free Chat with ross is near the top of our Link Tree, coombesmithlifetime.as.me/OnlinePropertyAdvisoryMeeting
A free chat with Ross can be a great starting point if you have property questions or queries, or just not sure what is the next step. Free Chat with ross is near the top of our Link Tree, coombesmithlifetime.as.me/OnlinePropertyAdvisoryMeeting
Some great info again. Really appreciate your videos.
Great video Ross! Are you able to do a video on personal home and tax around flatmates please?
Great video. What is your firm called please so I can check out website.
Hi Ross I am trying to access the Linktree video "How to get ahead with a personal home, plus tax tips and tricks." however there is only 6 seconds of duration. Are you able to give us some pointers or to reupload please?
Hi, sorry I didn't notice this comment until now. Do you mean watching a recording of the webinar on 23rd August? You should be able to enter details once you click on it on the linktree, or with this us02web.zoom.us/webinar/register/WN_EfTyw6LtS4yE9qZLsCZ6LQ#/registration
Hi Ross - yes that's right. However only 6 seconds of video is displayed. Are you able to check please?
@@oldschoolundertaker sorry I must have stuffed up the recording. I have now removed it from our Link tree and thanks for letting me know
Ross if the property is selling for the same price or a loss, is there any issue selling within brightline?
Brightline or any taxing provision only taxes profit. So if there is no profit, there will be no tax.
Im wondering if 1 or 2 portable cabin Airbnb could be a business and pay myself? And are there any tax deduction to reduce tax bill
Hi could you consider cover Airbnb in nz please? We are considering putting portable self contained cabin on our property. Love a kiwi video on this ❤
That's a pretty crap example to be honest. The numbers are just manipulated in a way to support your examples, but it's not the reality of how things work. Firstly, the assumption here is that you're spending $5000 for repair on the old house, consistently every year for 10 years, hence why you said the estimated cost for repair for the next 10 years is $50,000. Unless you found an extremely terribly skilled tradie, who does NOT provide warranty whatsoever, it's extremely unlikely to have to spend $5000 on repair EVERY YEAR. And just because a property is new build, doesn't mean it won't run into issues and require repair either. So this isn't really a fair comparison, because you're immediately putting the older house at a deficit of $5000 every year. Secondly, the new build property has body corporate of $500 every year. That's pretty low for body corp and most properties that charge body corp would be higher than that. So that's not entirely accurate either. Speaking of body corp, it's a shared cost amongst all the neighbours in that area. Typically, you pay body corp when it comes to an apartment, or new builds that have walls and roof joined together. The problem with these is that if for example your neighbour has a leaky roof, well you might be affected by the problem too and that the body corp for maintenance and repair will basically be shared by the community. Everyone in that community pays body corp regardless if you are the one facing issues or not. Lastly, the rates on the new build is much lower than the older property. Rates typically correlate with the CV of your property. So it's fair to assume that the older property has a higher CV and probably a higher potential to sell at a much higher price. You should be focusing on getting as much out of the sale as possible, instead of focusing on just swapping the property just because the cashflow in the new build is "better".
Sorry way over my head, just cannot understand. Talking a bit slower would help, I mean we're not in a mad rush are we?
Can you please help me understand a scenario. My owner occupied property I bought it in 2013, In case I move to australia say in 2025 and put this property on rent, When I sell the house do I need to pay the capital gain tax ?
Hi Aman, you need to get tax advice in Australia, as captial gain could be taxed there
Love your work, Ross. Brilliant summary. Appreciated.
🤣 "Promosm"
Great video Ross, can I ask why do you say that a freehold title in this case isn't great longterm?
Hi, there are pros and cons of different ownership types. When selling, Freehold sounds better and most buyers prefer Freehold. But if freehold, there is still shared driveway, fences and gardens, so would most likely be some kind of owners association. You would need to investigate carefully what these rules are , and if other owners didn't pay what powers the owners association had to collect. Or, if it is a unit title with a body corporate, then there are already legal rules in place, and a body corporate can collect its fee in a worst case scenario. So in lots of ways I prefer a well run body corporate.
@@Propertyaccountantrbthat makes a lot of sense. Thanks for that.
Thanks Ross, excellent analysis. I did also watch your video on Structure etc.. I'm still trying to pin down the advantage of using an LTC in addition to a family trust... (Liability isolation I guess)..
There is no perfect structure , and everyone is a little different. If you had an older rental in a Trust, and the tenants fall through the balcony of 2nd floor and kill themselves (hopefully this never happens). The Trust could then be liable under Health and Safety, and could get huge fine or liability, and you could end up losing your personal house in the Trust. So an LTC owned by the Trust can separate some risk from your Trust, which is the idea of asset protection.
Also a company can be a lot easier to run. Try setting up an account in a Trust name and watch the supplier get confused 🙂
Great insight, cheers.
very informative, learning heaps!! thank u
Awesome advice. I am sure this will be helpful to many.
What about if you don't buy a new house and rentvest? Move closer to work say 600 week rent save 150 week petrol, using your same example
Can you retrospectively get a chattels valuation?
Hi Ross, thanks for the video. This could be a really dumb question but where has the additional $16,272 of interest gone in the 50% deductible example... I get that you can't claim it as an expense but your cashflow is still going to be $16,272 worse off than what you are showing. So wouldn't the overall cash surplus actually be -$332 + the additional $16,272 interest not recorded in expenses = $16,604 or negative $319 per week (ouch)? So to summarize, the true overall cash surplus would actually be $7,339.4 worse off than when there was 0 interest deducibility. Hopefully that makes sense - would appreciate your clarification and hopefully I'm wrong.. sure the tax might be less, but the actual cashflow is significantly worse right?
Hi, the video was just to show the tax consequences of the change to 50% interest deductions for existing properties (not getting an exemption) from 1/4/23. So the tax bill went from $740 per year down to $332 per year. So no extra tax is being paid under the new rules, as the higher interest rates cancel out the loss of interest deductions. For cashflow as a whole, obviously will be bad due to the higher interest rates, and therefore more cash going to pay interest to the bank. BUT not worse because of the tax. There will be no extra tax to pay (in this example)
Thanks Ross. That makes sense. So the tax bill itself will be less. But the overall cashflow is still going to be 7k worse than the first example before the interest deductibility rules came in (16k total loss of cashflow instead of just 9k). So in this example it’s not worse because of the tax bill itself but it’s certainly 7k worse because of the interest deductibility rule. If you only look at this from a tax perspective and not an actual cashflow perspective it makes it look better than what the reality actually is, which is pretty ugly.. I just hope this video doesn’t mislead people by thinking what has happened isn’t going to have a very significant impact for the everyday investor. Appreciate your response 👍
Hi, sorry I missed this response. I haven't relooked at the exact numbers, but the interest deductibility hasn't made the cashflow worse. Higher interest rates have done that. Whether it was 100% interest deductible or 50%, was basically the same overall cashflow.
Company with 1 shareholder ( A) and 2 directors ( A & B ) . Question : if one of the directors get removed from the company ( B ) can that trigger a tax ( its not a sale of properties) ?
We will be adding some webinars to our Link Tree in the next few days - linktr.ee/RossBarnett , plus there are recordings of our old Webinars. They generally all about property, with lots of little tips and tricks
We will be adding some webinars to our Link Tree in the next few days - linktr.ee/RossBarnett , plus there are recordings of our old Webinars. They generally all about property, with lots of little tips and tricks
Great video!
Thanks!
That was a great, informative video, cheers!
Glad it was helpful!
We are always adding new videos and webinars, you can see our upcoming events and more here - linktr.ee/RossBarnett
What next? a free chat with our property team is a great starting place - www.cswaikato.co.nz/services-property-accountants-hamilton/201
Was 59% tax a figure of speach or a literal rate that might apply over there?
Hi any chance I can see you asap please
Don't forget we have two great, free webinars this month. One on saving money, which is all amount getting more cash in and less cash going out. And later in the month Ross is doing another rental basics webinar to help new property investors - you can register for any webinar on our Link Tree, linktr.ee/RossBarnett
Thanks, I am an aspiring Real Estate Bookkeeper from the Philippines, learning XERO Australia, and hopefully getting a client from Australia, New Zealand, and Singapore.
Great
Don't forget our free webinars. Tonight reviewing current deals and opportunities - us02web.zoom.us/.../reg.../WN_4tqSA7s0TXucVt2ZKHx9uA Monday webinar is Holiday Homes and GST. You can register on our Link Tree, as well as access old webinar recordings linktr.ee/RossBarnett
Don't forget our free webinars. Tonight reviewing current deals and opportunities - us02web.zoom.us/.../reg.../WN_4tqSA7s0TXucVt2ZKHx9uA Monday webinar is Holiday Homes and GST. You can register on our Link Tree, as well as access old webinar recordings linktr.ee/RossBarnett
Hi Ross, I was wondering if this is right: why didn’t distribute all 8000 to the beneficiaries who can receive and pay at 17.5% instead of paying 33% trust tax rate?
If you distribute to children or other beneficiaries, then you have to give them the money long term. So might not want to give them that much could be one reason. This video was just an example of what can be done, and it always depends on the exact situation, and can be other reasons for allocations apart from tax
Very helpful video. So if you bought a house in 2019, lived in it for 2 and a half years as you personal home and rented it out for the a year, is that taxable if we sell it? Its so confusing
Hi Evz, sorry I missed this comment. If caught within brightline period, which is 5 years for 2019 purchase, then need to see if you can get a personal home exemption. The main one is predominately personal home (allowed twice within 2 years). If just a straight foward case with no other catches, then you have lived in for 2.5 years in your example, and rented for 1, so would be predominately your personal house, and then tax free.