Loan to Value Restrictions
LVR restrictions can limit a landlord ' s ability to grow their portfolio , however , exemptions do apply in some situations , such as purchasing a new build investment property . Loan Market can assist you in how to best leverage your current position , or how to plan for the growth of your portfolio working within the current restrictions .
To find out how Loan Market can help you achieve your financial goals , or if you simply feel it ' s time to seek professional advice and make the most of your investment portfolio , speak to one of our Ray White property managers , or visit loanmarket . co . nz
Home Office Expenses
Are you legitimately using part of your own home to run your rental business ? If so , you can make a claim on some of your personal expenditure as a home office expense .
It ’ s a simple calculation based on the proportion of your home used as a home office .
Start by adding up the personal expenditure on your own home , e . g . rent or mortgage interest , rates , insurance for the year etc . Work out the floor area of your home in square metres , as well as the area of this total that is occupied by your home office . Finally , divide the home office area by the total floor area . This is the percentage of your home expenses that can be claimed and offset against your rental income .
Square metre rate option
Instead of working out how much of your household expenses will be claimed , you can opt for the square metre rate option . This uses a rate the IRD sets each year based on the average cost of utilities per square metre of housing for the average New Zealand household , which is then applied to the floor area size of your home office .
This rate does not include premises costs of mortgage interest , rates or rent , and you can also claim a portion of these based on the percentage of floor area used .
Be sure that you are actually using this space as intended . The IRD are known to conduct home office inspections at random .
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