Property

Property round-up

Auckland sales prices have jumped, which research company Crockers finds unusual considering the lack of sales numbers, plus IRD is looking at what it constitutes as a mortgagee sale in relation to collecting GST.

Monday, April 26th 2010

Auckland price jump surprising
While sales numbers in Auckland tracked almost exactly against 2009 levels, a major jump in median prices for March was surprising, according to Crockers.

"A moderate jump is ‘normal' at this time of year, but the 5% leap on February's median price is surprising and something not seen since 2005."

The median sales price was also up 9% on March last year at $475,000.

Crockers says the continued recovery of up-market areas in Auckland City and North Shore City are the main sources of recent price rises, with Papakura also climbing out of the late 2008 trough.

"Nation-wide movements were more moderate, delivering a ‘mere' 3% rise on February price levels and an 8% year-on-year lift for a national median price of $360,500, total sales however fell 8%," the company said.

IRD honing in on GST collected from mortgagee sales
The Inland Revenue Department (IRD) is currently looking at what it deems to be a mortgagee sale in relation to claiming GST, to close a gap in the system.

At present the Goods and Services Act has powers for the IRD to claim GST from insolvent landowners who make a mortgagee sale.

However, there are ways of making a mortgagee sale look like something else, since the downturn began increasing numbers of people are using these.

The proposal here is the IRD would have powers to "deem" something a mortgagee sale if it has all or some of the following characteristics:

  • a mortgagee taking control of, or inducing the sale of, the property by exercising a power under a contract with a mortgagor
  • a mortgagee signing the sale and purchase agreement, or requesting the mortgagor to sign the sale and purchase agreement as already negotiated by the mortgagee
  • a mortgagee organising services related to selling the property, such as building, conveyancing, auctioning or advertising services
  • a mortgagee paying directly for the services related to selling the property
  • a mortgagor's solicitor also being the mortgagee's solicitor
  • a purchaser being associated with the mortgagee.
Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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