A Land Information Memorandum (LIM) is a document prepared by the Council to help provide useful information to those buying or selling property. A buyer will gain additional information, which might help their decision making process; a seller might benefit by being better equipped to answer questions from potential buyers.
The information covered within a LIM is normally more detailed than what can be viewed on a property file alone. It includes checks by various Council departments and aims to tell you what you might want to know before buying a property.
Key things to note:
As a purchaser your lawyer may also offer to order the LIM report on your behalf.
LIMs are a great tool in assisting buyers to feel confident about the property they are looking to buy - and it greatly assists them to be in a more unconditional position when it comes to offering
If an offer is conditional upon the purchaser obtaining and checking the LIM for the property this condition may be up to 15 working days (3 weeks)
LIMs can take between 3 and 5 working days
Currently a 3-day report costs $357.00 inclusive; 5-day $305.00
Here is a link that explains what a LIM is and how to order one:
healthy home standards
New healthy homes standards for rental properties
New minimum standards will make rental properties drier and warmer. The healthy homes standards, which become law later this year, aim to improve heating, insulation, ventilation and drainage, reduce moisture and stop draughts.
Heating - The main living area must have a fixed heating device that can heat the room to at least 18°C.
Insulation - Ceiling and underfloor insulation must either meet the 2008 Building Code (see more about this below), or (for existing ceiling insulation) have a minimum thickness of 120mm and be in reasonable condition.
Ventilation - Ventilation must include openable windows in the living room, dining room, kitchen and bedrooms. Rooms with a bath or shower or indoor cooktop must have an appropriately sized extractor fan.
Drainage - Rental properties must have efficient drainage, guttering, downpipes and drains.
Moisture - If a rental property has an enclosed subfloor space, a ground moisture barrier must be installed where possible.
Draughts - Any gaps or holes in walls, ceilings, windows, floors and doors that cause noticeable draughts must be blocked. This includes all unused chimneys and fireplaces.
Wondering if the "bright-line" test applies to your residential property sale?
In New Zealand we don't have a Capital Gains Tax (CGT). In fact it's been ruled out by the current government. However there is a form of capital gains tax on profits made if you "flip" a property with the intention of making a profit on the purchase/sale - this was extended from two to five years in 2018.
The bright-line test DOES NOT APPLY if the property was:
your main home
transferred as part of an inheritance
transferred to you as an executor/ administrator of a deceased estate.
If you're selling a residential property and your intention when you purchased the property was to re-sell it, then you MAY have tax to pay on any PROFIT you make from its resale.
If a property was purchased on or after 1 October 2015 through to 28 March 2018, the bright-line test will look at whether the property was sold within 2 years.
If you entered into an agreement to purchase residential property on or after 29 March 2018 and sell it within 5 years, you’ll need to consider if it is taxable under the bright-line test.
The tax you pay depends on four things:
Your intent when you purchased.
Your history of buying and selling.
Whether you're in or associated with the property industry.
Whether you buy and sell a property within five years (two years if the property was purchased on or after 1 October 2015 through to 28 March 2018 inclusive).
It's your intention when buying a property that matters.
Nearly everyone buying a property will sell it at some stage. Most people will hope that their property will gain in value, and we know that an increase in value is common. However, this alone isn't enough for any profits to be taxed.
In most cases you don't have to pay tax on the eventual sale of your family home.
If you bought a property as a long-term rental, then you probably won't have to pay tax on the sale either.
However, when a property has been bought with the firm intention of resale you'll have to pay tax on any profit from the sale. The intention to sell does not need to be the main reason for buying the property - it could be one of a number of reasons for buying.
Your history of buying and selling counts
If you have a pattern of buying and selling property, then you may be a property dealer and may have to pay tax when you sell property, even on your family home.
If you're unsure whether you're a property dealer, you should seek advice from your tax advisor.