Two Questions: 'Lifestyle' Properties and Tax Breaks

[KiwiHopeful]

Two questions:

What are "lifestyle" properties? Please explain! :)

Do Kiwis get taxbreaks for real estate taxes and mortgage interest, as we do here in the US?

[MotherBear]

Hi Kiwihopeful,

Sorry, can't answer your second question as we aren't in NZ yet, but I can tell you that a lifestyle property is akin to a small farm. There are a lot of them in rural NZ and they usually have a fair bit of land attached to them. Some that have been used to rear cattle, horses or sheep may have outbuildings like stables or barns included as well. Lifestyle properties don't necessarily have to be used for farming, but may have been in the past.

[ExPat]

Do these have the same 2000 sq meter restriction on land owned by foreigners that everything else does?

Is the 2000 m2 limit per property or total?

Could I own two 1000 m2 properties?

[jadet]

I thought the only restrictions on foreign ownership were on waterfront and other "sensitive" properties. Also, if you get PR than you're a local, not a foreigner anymore I think.

There is only one tax deduction that I've heard of for property. It's if you generate income from your property then you can deduct the mortgage interest (and some other expenses I think). That is why so many of those bedsits are built into kiwi houses. If they are rented, they get the tax deduction.

[MotherBear]

I thought the only restrictions on foreign ownership were on waterfront and other "sensitive" properties. Also, if you get PR than you're a local, not a foreigner anymore I think.

Yes, once you have PR the restrictions are lifted. Regarding the restrictions, I had been informed that people without PR couldn't buy anything with over 2000 sq. mtrs. of land. However, after reading this, I'm not so sure. Perhaps someone 'on the ground' could verify for us.