Buyers hunting for right farm
It could be that buyers are hunting out the right farm to purchase as farm sales drop for the three months ended December 2023. That’s according to the Real Estate Institute of New Zealand (REINZ).
A significant number of lifestyle block owners may have to pay a capital gains tax on their family home, warns the Real Estate Institute of NZ.
Under the Tax Working Group’s proposal, which may come into effect after 1 April 2021, land that is larger than 4,500m2 is not subject to the family home Capital Gains Tax (CGT) exemption.
“Indicating the potential size of the problem, in the last 12 months, REINZ data has shown that 92% of lifestyle blocks sold across the country were larger than 4,500m2,” says Bindi Norwell, chief executive at REINZ.
“If this is indicative of a normal year’s sales, then going forward, a similar portion of the market is likely to have to pay CGT on the portion of their land that is greater than 4,500m2.”
Norwell says it’s a case of “the devil being in the detail” of the report. She says REINZ doesn’t believe many members of the community are aware of the impact the CGT could have on their lifestyle block home.
“Should the recommendations make it past the 2020 election, what this means is that we could see a significant number of lifestyle blocks coming up for sale in the next few years as people look to avoid having to pay CGT on their property,” says Norwell.
“We have repeatedly said that any changes in legislation should avoid being too punitive on one sector of the market, and we will certainly be making a submission to this effect on behalf of those living on lifestyle blocks.”
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.