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August Newsletter

Posted by on 11 August 2016 | Comments

Welcome to our third newsletter for 2016 - this one focusing on property:

 

Unresolved Insurance Claims

Residential Land Withholding Tax

Kiwisaver Withdrawals for First Home Buyers

Kiwisaver Homestart Grant

 

August 2016

We think you may be interested in updates in these areas.

If you would rather not receive these regular updates please unsubscribe at the bottom of this newsletter.

  Unresolved Insurance Claims - Last Call

The damage and disruption caused by the Canterbury earthquakes has resulted in an unprecedented number of insurance claims.  Many insureds will be surprised to learn that an insurer may decline an unresolved claim in its entirety if proceedings have not been filed in Court within a specified limitation period. 

Insurance claims for damage or disruption which occurred up to 31 December 2010 will be governed by the Limitation Act 1950.  Under the 1950 Act insurance claims must be filed within 6 years of the event that caused the loss.

Click here to read more

The new Residential Land Withholding Tax ("RLWT")

The Residential Land Withholding Tax (‘RLWT’) has come into effect from 1 July 2016, it introduces a tax on profits made by offshore persons who buy and sell residential land in New Zealand within two years of the date the land was purchased. The tax applies to any land deemed residential in nature whether or not there is a dwelling on the section. It is the Vendor’s solicitor’s responsibility to collect and pay the tax to the IRD by way of a deduction from the sale proceeds and in this way gives more teeth to the recently introduced Bright Line Test.

To read more click here.

Kiwisaver Withdrawals for First Home Buyers

Buying your first home takes careful planning and perhaps more importantly serious budgeting and you need to be aware of what is available to assist you with this process.

Kiwisaver is a voluntary, work-based savings initiative to assist you with your long-term saving for retirement.   If you have been a member of KiwiSaver for 3 years, you may be able to withdraw some of your KiwiSaver savings to put towards buying your first home provided you intend to live in the property – it cannot be used to buy an investment property.  A first-home buyer is an individual who has not owned a house or land before either in New Zealand, or overseas.  Click here to read more.

 
Kiwisaver Homestart Grant

Buying your first home with KiwiSaver

After three years of regularly contributing to KiwiSaver (of at least the minumum allowable percentage of your total income) you may be entitled to the HomeStart Grant.  The default rate is currently  3% and this is the minimum that you must contribute.   

We suggest you visit  www.kiwisaver-homestart.co.nz/calculator to obtain an estimate of the amount of Grant you might be entitled to.

You can apply for the HomeStart Grant or pre-approval for the Grant, if you have belonged and contributed to a KiwiSaver scheme, complying fund or exempt employer scheme for at least three years.

If you are purchasing an existing or older home, the Grant is $1,000.00 for each year of your contribution to the scheme:

 3 years of contributing = $3,000.00 (the minimum you can get)
 4 years of contributing = $4,000.00
 5 years of contributing = $5,000.00 (the maximum you can get)

To read more click here.

We look forward to hearing from you soon.

Kind regards

The team at Harmans

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