'Our First Home' Auctions How Much $$

[VKR]

Exactly Eri. People still have this notion you can trade one a year and not get taxed or they don't tax the family home.

[Maccachic]

Exactly Eri. People still have this notion you can trade one a year and not get taxed or they don't tax the family home.

Has an arguement with a builder once over this - wouldn't listen in the end I walked away. He reckoned he's been doing it for years - buying, doing up and selling (no tax paid).

[Wayne]

Has an arguement with a builder once over this - wouldn't listen in the end I walked away. He reckoned he's been doing it for years - buying, doing up and selling (no tax paid).

And he probably has.
And he can keep doing it until one day IRD turn up on the door step.

[Damap]

The % that get caught is so small because it's hard to prove. You can state you are restless so you like to move a lot. Hardly top of IRD's hit list.

[RHarris]

I understand it is high on their lists now. A lot of tax lost, could be $30k-$40k a house. more than welfare scammers could rake up.

[Damap]

No not enough people doing it.

[jimO]

I understand it is high on their lists now. A lot of tax lost, could be $30k-$40k a house. more than welfare scammers could rake up.

really, on one hand perhaps 100 bldrs, maybe not paying tax on the profit from the house but paying gst etc and on the other hand thousands of beneficiarys

[RHarris]

Not just builders. I come across all sorts. Tilers, painters, mum and dad investor types all trading and not paying tax. Beneficiaries a few hundred dollars here and there compared to thousand dollar chunks with trading.

[jimO]

perhaps but every dollar spent is taxed, goods are taxed and taxed and taxed, its like the so called black economy i bet every cash dollar earned is spent back into the taxed economy

[Meehole]

They spent $90k on reno but only 50% of that was added to the purchase price to get their reserve. Add in the freebees they got and include 8 weeks labour x 4 people (loss of income and their work/labour not included) there wasn't actually alot of real profit. Of course if the parents pay each of the 4 $35k each then only $3500 tax to pay on the supposed profit. Each pays their own tax at end of year on income.
They should give the real costs as those watching are thinking there's probably big money to be made, but that's not the case.

[bpkeng]

Exactly.. $143k.. Wow, let's get out there this weekend and buy anything we can find under $600k. It'll sell for $800k by the time we're done. Easy money.. even these amateurs can do it, so why not I?

[donna]

Geez just seen the video of last night's auction - nearly $200K profit! They'll be doing it again aye.

And in NZH they are reporting properties in AKL up 13% just in last month alone and I heard Barfoot and Thompson made more than $30 million in commission in Auckland alone just in the month of March.

cheers,

donna

[klauster]

Well, watched the first auction – such a sweet story: 143k over the reserve (profit?) no word about trader’s regulations (GST and tax), council’s time line and regulation, sorted within 10 weeks. Easy, let do it again, making money in property. That type of education for NZ public worries me a lot.

[Damap]

It's not education at all. First auction they made a gross profit of around 50K so barely profitable. Second house they did well and actually made maybe 110 gross so that was owrth doing. They did that by turning a 2 into a 3 bed and without Toms skills they would have spent all their profit on a decent builder.
So far there is no evidence of any real profit in either. But hey it's a great show :-)

[rocket]

OUR First Home

194 te atatu rd sold in auction & telecasted on tv....
renovated n sold for 898k
comments please