any experience with flips in NZ?

[fitguy]

Hi everyone,
Have just been educating myself more on flips and I was thinking it would work well in NZ considering there is no stamp duty or capital gains tax.
Does anyone on this forum know anymore regarding this or even if it is infact legal.
If it is, it seems like a potential goldmine.

Thanks guys.
Have a great day!

 

[deeman]

Hi Fitguy

Flips are legal in NZ, but by doing this type of activity you are deemed a trader and will pay income tax on profits accordingly.

Capital gains do not apply to long term buy and holds, you will be taxed on fips

D

 

[fitguy]

hi
does that mean you are taxed twice on the same money then?
once on your capital gain,and then again on your income?
thanks for your reply,do you have exp with nz?

 

[deeman]

Hi

No... If you are flipping in NZ the properties are treated as 'trading stock' therefore the profit you make from flipping is treated as income. You are then taxed on this income.

Hope this helps

D

 

[Queen Bee]

Just browsing tonight and read this post. I was talking to a RE agent last week and he starting talking about people doing flips (well, he didn't know what they were called) and he was having an absolute mental fit at me on the phone about them, saying people that do them should be prosecuted, that he was sure it must be illegal and basically that he thought the people that were even contemplating doing them should be shot.

I could hardly get a word in, so just let him carry on, he was carrying on the same way people here seem to carry on about WRAPS. Because you only hear about the scoundrels that do WRAPS to rip people off. I know people that have bought houses that way and they're quite happy, but once something goes wrong with one, the whole country hears about it.

Just though I'd put my 2cents in.

Cheers
QB