What is Conveyancing and why do I need it?

Quay Law for Auckland conveyancing and property law solicitorsConveyancing is all the legal legwork needed to buy or sell a home whether this be an investment property or home for your family. There are a number of important legal steps involved, which include title searches and contract preparation.

When buying or selling a home it’s important to get the right property law and legal advice from the start.

If you are buying a property, our property lawyers | solicitors can help make sure the purchase is smooth and effortless, by providing advice at every stage until you complete the purchase. If there is no real estate agent involved we can prepare an offer for you.

Pleases visit our Quay Law Conveyancing and Property Law Website.

Property law website.

Foreign Property Buyers purchase NZ apartments

Article Source: NZ Herald and shared by the property and conveyancing law team at Quay Law.

30 January 2013

Parents of foreign students are flying into Auckland on short visits to cram in apartment viewings and making quick deals for children studying here.

The apartment market had long been dominated by investors but estate agents are noticing a shift toward owner-occupier buyers.

Apartment sales are almost back to where they were before the global financial crisis hit in 2007 and 2008, according to figures from the past eight years analysed by the Herald.

Harcourts real estate agent Larissa Tsapko said she had shown apartments to about 30 groups of people in the past two months. Ninety per cent of them were parents looking for units for their children – more than she had seen in her four years selling apartments in central Auckland – and she had had more inquiries for later in the year.

Many were from China, Russia and the Middle East, she said. Waterloo St, Gore St, Parliament St and Eden Cres were popular areas.

Hayden Butler, who heads Bayleys’ city apartment team, said he had hosted three separate groups of Asian parents this year.

“They are in the city for a few days – three of four days – and cram in half a dozen viewings a day. It’s a business trip, not a sight-seeing holiday.”

They wanted short settlement terms – sometimes as quick as three weeks – and were making offers on the spot, Mr Butler said.

Many were buying in what he called the “university quarter”, a section of the city with about 30 or 40 apartment buildings around the University of Auckland and the Auckland University of Technology. It encompassed Symonds St, Wakefield St and the top of Queen St.

“For some parents, they see it as a good investment,” Mr Butler said.

“If they’re going to be paying for accommodation for three years, they might as well buy something and get a return, rather than paying rent … And it becomes their home away from home, so when they come and visit, they stay in the apartment with their kids.”

Owner-occupiers entering the market tended to shun the smaller apartments so purchase prices were higher.

Real Estate Institute chief executive Helen O’Sullivan said the apartment market was one of the hardest hit during the crisis but it was recovering.

Figures provided by REINZ show $513.6 million was spent on Auckland city apartments last year.

The past eight years has seen steady sales, about 300 or 400 each year, but prices dropped significantly during the crisis. Just over $696.6 million was spent in the city in 2006 and it dropped to $587.7 million the following year before a fall to $280.7 million in 2008. It has slowly been creeping up since.

The data covered the suburbs of Auckland Central, Arch Hill, Cox’s Bay, Eden Terrace, Freemans Bay, Grafton, Grey Lynn, Herne Bay, Morningside, Newton, Point Chevalier, Ponsonby, St Marys Bay, Western Springs and Westmere.

For each year, the sales represented around 30 or 40 per cent of total national sales of apartments.

The median price for an apartment last month was $237,073. It was $280,000 in December 2007, before dropping to $187,000 in December 2008. Ms O’Sullivan said figures were not held on the ethnicity of home-buyers.

Buying a Property – What is the best form of ownership?

When buying a property or home it is important to consider what the best form of ownership is for your situation.

Our conveyancers will discuss the various legal options available to you as these will differ depending on if you are buying a rental investment property or a home to live in and on your personal circumstances.

It is essential to get professional advice on your structuring options prior to signing your contract for Sale and Purchase of Property Agreement

Contact Quay Law (09) 5232408

Newspaper article: Accountants expect capital gains tax bonanza

Source: Business Day

Tax experts are licking their lips at a boom in possible work to help navigate clients from being the haves to the “have yachts”.

Labour’s initial proposal for a capital gains tax came with a promise that a panel of experts would iron out any teething problems, but the accountancy industry wasted little time in pointing out what it believed to be obvious initial holes.

From exemptions on business sales when close to retirement, plus antiques, stamp collections and yachts, the complexity of the initial proposal would result in a vast annual project to calculate the capital value of assets, experts warned.

Grant Thornton Wellington chairman Peter Sherwin said the initial proposals were “back to the future” with the now simple income tax system and “pure” GST set to be replaced by complex schemes. “From a purely selfish point of view, this is very, very good news,” he said. “They say it is going to be a game changer; well, it’s certainly going to be a game changer for the accounting and legal industry in terms of where the opportunities to navigate through the exemptions.”

John Shewan, PricewaterhouseCoopers chairman, said aside from the exemptions, the issue of annual valuations of assets on “CGT day” also existed. “That is an enormous task and remember, valuation is an art, not a science.”

Shewan, who joked that the plan could triple PWC’s staff numbers, said because the proposed 15 per cent CGT rate was much lower than company tax, a huge body of work would occur to differentiate capital gains from other types of profits.

“I’m simply not persuaded by the suggestions in this package that it’s a simple tax. It’s far from simple.”

Deloitte’s Patrick McCalman said aside from accountants seeking loopholes, considerable uncertainty existed about how a new tax would alter consumer behaviour.

While Labour knew what it was giving away through cuts to GST and income tax, no-one knew how CGT would affect human behaviour, and therefore how much revenue it would gain.

“CGT is new to New Zealand, so we don’t know what kind of behaviours it is going to drive, and if the CGT doesn’t deliver what’s being spent elsewhere, the big question is, how do you balance the books?”

Economists, meanwhile, stuck up for the plan. Westpac chief economist Dominick Stephens predicted a CGT would cause lower house prices, especially at the lower end of the market, and higher rents, which would inevitably lead to higher rates of home ownership.

He played down the significance of the additional work for professional advisers. “What is the difference between paying an accountant to avoid CGT and paying a real estate agent to buy an investment property?

“They’re both just activities designed to avoid tax.”

Chinese keen to bring their riches to NZ

Source: NZ Herald

Reporter : Lincoln Tan

New Zealand has a strong appeal for rich Chinese people who want to move here as investor migrants. Two have been granted conditional residencies after investing more than $10 million each in “approved investments” and 43 others – more than from any other country – are waiting to be granted approval or have received approval in principle to transfer more than $1.5 million each. Acting head of Immigration Jan Clark says the department has also given approval to a third Chinese investor to transfer money. Immigration Minister Jonathan Coleman said the business migration scheme had attracted $416 million of potential investment capital to New Zealand. So far, more than $102 million has been transferred and invested here and $133 million has been approved for funds transfer. Applications worth another $181 million are being processed. “We developed a policy package that makes New Zealand very attractive to business migrants, and they’re staking their confidence in New Zealand at a time of difficult international financial conditions,” Dr Coleman said. When the scheme was introduced, many would-be investors from China claimed Immigration’s recognition of money transfers only through the banking system was blocking them from investing in New Zealand because of China’s strict money transfer rules. A licensed immigration adviser said the two successful investor applicants had transferred their money through Hong Kong to get around the rules. “Their nominated funds are in Hong Kong, and it is easy enough to use the Hong Kong banking system to transfer the money here,” said the adviser, who did not want to be named. He was advising his other Chinese clients to use similar means to move their money if they wanted to apply for New Zealand residency. “It’s a bit of a hassle and takes longer, it’s a pathway they can use,” he said. “For example, the Chinese can buy properties in Hong Kong, liquidate the funds and then transfer the money over.” However, the New Zealand Association for Migration and Investment advocacy and policy chairman Jimmy Lee said New Zealand’s business migration policy still discriminated against the Chinese. The association has made a written submission to the Department of Labour, which oversees Immigration, asking it to review its business migration policies. “From the Immigration figures, we know the Chinese hold the key to how successful the policy will be,” Mr Lee said. “There should be a total review of the business migration policies if the Government is serious about wanting more investor migrants.” Immigration adviser Ming Tiang, who runs Chiwi Immigration Services, says he has at least 10 Chinese clients, with between $1.5 million and $10 million to invest, who could not meet Immigration’s “bank transfer only” requirement.

INVESTOR 1 ($10 million+ investors)

Number of applications approved by country

  • 2 – China, US
  • 1 – Finland, UK, Singapore, South Korea

INVESTOR 2

($1.5 million+ investors)

  • 9 – US
  • 2 – UK
  • 1 – Japan, Singapore, South Africa

APPLICANTS

Approved in principle/under process (top three countries)

  • 43 – China
  •  35 – UK
  • 19 – US

Source: Immigration New Zealand

NO WILL or IS YOUR CURRENT WILL OUT OF DATE?

 
 

 

  

  

Your Will is Law

 

NO WILL or IS YOUR CURRENT WILL OUT OF DATE?

Legal tip of the week provided by Auckland Lawyer, Ian Mellett.  Ian is the principal of Quay Law Barrister and Solicitors.  Quay Law is located in Remuera, Auckland. 

NO WILL

Dying intestate can be costly.

If you die without a will or your will is deemed to be invalid, then you are said to have died intestate. In this event, administration of your estate is entirely determined by legislation and not you. Your wishes are not relevant.

IS YOUR CURRENT WILL OUT OF DATE?

We recommend that you review your Will regularly. By way of example. Some wills include specific bequests to particular heirs e.g. my house (address) to “A” and my shares (company name) to “B”. Do you still own that house at that address and those shares in that company?

Please find below a recent article as published in the New Zealand Herald

Source: NZ Herald

Reporter Rachel Tiffen

A bitter dispute has developed over the will and $2 million fortune of slain undercover police officer Don Wilkinson.

His adoptive father, Ron Wilkinson, has been left everything – leaving his mother, Bev Lawrie, without a penny.

The parents have been separated since 1983.

In a North & South magazine article published today, Ms Lawrie and other family members and friends say Don Wilkinson and his mother were close, and he would not have wanted her left with nothing.

Don Wilkinson wrote his will at a Public Trust office in Christchurch in September 1985, when he was 23, before going to work in Antarctica.

Then, his assets were two guitars and a second-hand car.

Two simple lines bequeathed “the whole of my estate both real and personal” to Ronald Charles Wilkinson.

But Don Wilkinson was a frugal, single man with no children, and by the time he was killed, his estate had grown to $2 million.

This included his $900,000 property at Helensville, north-west of Auckland, $70,000 in cash, some investments and a six-figure payment from police insurance and superannuation.

Lawyers say nothing can be done now. Under the Family Protection Act, potential claimants have 12 months after a will is probated to bring a claim.

But Ms Lawrie said she spent the year after her son’s death trying to survive – mourning him, weathering publicity and dealing with the killer’s arrest.

Don Wilkinson was killed two years ago when he was chased and shot down bysuspected P dealer John Skinner in Mangere East.

Mr Wilkinson had been trying to attach a tracking device to Skinner’s vehicle.

Skinner was jailed for at least 15 years for murder; his friend Iain Clegg received a minimum four years for manslaughter.

Ron Wilkinson told North & South his adopted son made a choice.

“Don was a 47-year-old police officer, not a 15-year-old handicapped child. He left a will and it was adhered to.”

He has reportedly refused to respond to a lawyer’s request or the family’s plea for mediation.

Yesterday, Ms Lawrie said it was an insult to her son’s memory.

“Don would be horrified, he’d just be absolutely horrified,” she said. “It [the will] was just slapdash because he was off on a big adventure …”

She said efforts to talk to her ex-husband had fallen on deaf ears.

“If it had been me, I’d have given him half of whatever.”

Ms Lawrie, 69, owns a freehold home in Oamaru, surviving on a pension and the odd day relief teaching.

She hasn’t paid her rates since her son’s death – she says he always paid them.

Ms Lawrie said her son’s friends text and phone her often, affectionately calling her “Ma Bev”.

“They have been absolutely wonderful,” she said. “I get a text saying ‘Hi Ma Bev how are you?”…”

 

NZ business confidence levels out

Robert Smith | Wednesday October 28 2009 – 03:50pm

Source: The National Business Review

An easing in confidence in the service, retail and manufacturing sectors has seen overall business confidence in October drop 1% from September to 48%, after reaching levels not seen in a decade last month.

The latest Business Outlook report from the National Bank shows the construction industry is the most confident, with 75% of businesses surveyed predicting better times ahead in that sector.

Looking at their own performance, 31% New Zealand businesses are predicting a stronger result in the future, also down 1% on the September figure.

The October result follows a massive jump in confidence last month, when overall confidence jumped from 34% to 49%, with the latest result showing confidence stabilising at elevated levels.

Profit expectations are also on the rise, with 12% expecting a better bottom line over the coming year – the highest reading in five years, according to the bank.

Investment intentions were also up 4%, but employment intentions dropped another 2%, indicating a lack of conviction when it comes to committing cash to employment and investment as firms focus on balance sheet consolidation and de-leveraging.

The report noted that with momentum improving across the economy it was “inevitable that interest rates will rise from the extraordinarily low levels they currently reside”, although it also conceded that the degree to which it occurs and its timing remained subject to debate. 

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