Lifetime Property Accounting

Free webinar 16th September - Rental Property Basics
Learn the basics about residential property investment from property accounting specialist Ross Barnett.

This will include;
1. Major issue or problem with stock standard rentals.
2. The steps to buying a rental (looking on a real estate website or speaking with a mortgage advisor is not the best place to start).
3. A great solution that can work for many new property investors (lower risk, better cashflow, and easier).
4. If you are buying a rental property, what does it need for you to succeed?
5. Should you buy solely for cashflow?
6. An example of tax payable each year on a high cashflow property, plus a tip to reduce the tax due.
7. Townhouses - Why, in general, we don't like them.
8. Property history - Why did property values boom?

https://us02web.zoom.us/webinar/register/WN_isNcLoGaTGeLJQbqRhaaEg

This is a great graph to follow for understanding what is happening with interest rates. It is available on the interest.co.nz website under Charts / Interest rates.

The 1 year swap rates was 3.43% at 3rd August 2026 and is 3.45% today (7th September 2026).

In theory, fixed interest rates should therefore be holding steady. The current 1 year fixed mortgage rate is around 4.99%.

Following the recent OCR change, it would be expected that all floating rates have increased by 0.25%. However, this change should, in theory, already be priced into fixed rates, so fixed rates shouldn't be affected.

Best advice is to constantly review your loans and interest rate strategy.

With OCR expected to increase tomorrow, it is worth a quick read and to review interest rates.

https://www.lifetime.co.nz/resources/blog/interest-rates-on-the-move-again

Interest rates on the move again. » Lifetime After a period of falling rates, the Reserve Bank of New Zealand (RBNZ) increased the Official Cash Rate (OCR) from 2.25% to 2.50% in July, its first increase in three years.

Free webinar , Rental Property Basics on Wednesday 16th September.

Learn the basics about residential property investment from property accounting specialist Ross Barnett.

This will include;
1. Major issue or problem with stock standard rentals.
2. The steps to buying a rental (looking on a real estate website or speaking with a mortgage advisor is not the best place to start).
3. A great solution that can work for many new property investors (lower risk, better cashflow, and easier).
4. If you are buying a rental property, what does it need for you to succeed?
5. Should you buy solely for cashflow?
6. An example of tax payable each year on a high cashflow property, plus a tip to reduce the tax due.
7. Townhouses - Why, in general, we don't like them.
8. Property history - Why did property values boom?

https://us02web.zoom.us/webinar/register/WN_isNcLoGaTGeLJQbqRhaaEg



This webinar is aimed at those wanting to invest and new property investors.

Welcome! You are invited to join a webinar: Rental Property Basics. After registering, you will receive a confirmation email about joining the webinar. Learn the basics about residential property investment from property accounting specialist Ross Barnett. This will include; 1. Major issue or problem with stock standard rentals. 2. The steps to buying a rental (looking on a real estate website or speaking with a mortgage advisor is not the best pla...

Free recording of our Webinar held this week.

Casual webinar looking at a few properties currently on the market and what their numbers look like. Is the cashflow great, OK or terrible?
Ross will run through some items that he would look at on each property, some possible issues and things that are worth checking. Plus identify some opportunities or risk areas.
Expecting around 45 minutes depending on questions
NOTE - these are just random properties for sale, and we do not sell any property ourselves.

https://youtu.be/3nKLkME4L9g?si=zhLX6pycxqd62OLL

Free webinar - reviewing current property deals August 2026 Casual webinar looking at a few properties currently on the market ...

Example of a Property Investor's recent purchase (we did not recommend this purchase)

Huge loss, and we see this as a huge "hand brake". This will slow this investor down and make it very difficult to buy future rentals.

Number 1 tip - If you are looking to buy a rental property, make sure you know and understand the cashflow.

On an Interest only loan, this rental is expected to cost the investor $21,818 in the first year. Our prediction over the first 10 years is for an average annual cash loss (interest only) of $22,767, so the cashflow is not suddenly going to get better.

The only potential for the investor to "win" is if there are large capital gains. This is a classic example of "gambling on capital gains".

Our main point - A property investor could buy a lot better!

Assumptions:
- This example assumes an interest only loan. If principal repayments were also being made over 30 years, the cash loss would be even larger!
- 100% lending has been assumed (most property investors borrow 100% of the purchase price. See the article in the comments explaining how this works).
- Current interest rates have been used.
- The rent is the current rent.
- Newish property, so repair costs are low.
- Accounting is higher as this is the only rental property. If an additional rental, the total accounting cost would only go up $200.
- Other expenses are based on actual costs, with a little rounding.
- Property is located in a good part of South Auckland.

Be careful of large cash losses, especially given the possibility of CGT, interest limitation returning, and other potential tax changes.

Don't forget our free webinar tonight at 7:30pm

If you can't attend, you can register to receive access to online recording (just register for webinar).

Casual webinar reviewing the numbers on a few current properties.
- recent purchase with bad numbers.
- Multi dwelling example
- Commercial example



https://us02web.zoom.us/webinar/register/WN_hP10ExHqRuaRKpwDOe4wvw

If Capital Gains Tax (CGT) is introduced from 1st July 2027 (Labour's proposal).

- Property purchased in 2015 for $400,000.
- As at August 2026, the property is worth $600,000.
- Registered valuation at 1/7/27 for $620,000.

Example 1 - If property market increases by around 3%, and the property is sold on 31 March 2028 for $640,000.
There are likely to be selling costs, such as commission, of $20,000 (for example).
Therefore, the net sale price is $620,000.
As there is no gain above the 1 July 2027 valuation, then no CGT would be payable.

Example 2 - If property market increases by another 3% and the property is sold 31 March 2029 for $660,000.
There are likely to be selling costs, such as commission, of $20,000 (for example).
Therefore, the net sale price is $640,000.
As this is $20,000 above the 1 July 2027 valuation, under Labour's current proposal this amount would be taxed at 28%.
Therefore, $5,600 of CGT would be payable, most likely due 7 April 2030.

Example 3 - Using the same facts as above, but the Property Investor obtains a friendly registered valuation at 1 July 2027 for $640,000.
As there is no gain above the valuation amount, no CGT would be payable.

Tip - start building a relationship with a valuer now so that you can obtain a valuation around July 2027. Also start thinking about how you can maximise the valuation amount, as a higher valuation will reduce CGT payable in the future.

Overall - If the market increases by around 3% for the next two years, there is likely to be little or no CGT payable. No need to panic!

We understand that the current property investment market is challenging, and that many property investors are considering their options. To support you, we are offering our clients a discounted strategy meeting with Ross Barnett.

https://www.lifetime.co.nz/business-advice/accounting/lifetime-property-accounting/strategy-meeting/