Property Development is becoming an increasingly popular industry in New Zealand, especially within Auckland. With the complexity of the market and the time and attention that property investment demands from business owners, getting strategic advice from a property development accountant is the best way to succeed in your investments.
As a team of experienced financial advisors and chartered accountants specialising in property development accounting, we know that creating a property development strategy plan can be difficult and time-consuming. Here are a few things to be aware of when selling property, buying real estate, or developing land in New Zealand.
Getting strategic property advice and setting up a comprehensive development plan is a vital part of making and growing a business in New Zealand. As one of the most complicated investments, property development can be costly and time-consuming to pursue. Having a comprehensive strategy in place before you start your development plans is the best way to ensure the success of your property investment.
Property development projects can be run under a company, a trust, a partnership, or a person as an individual. There is no clear best way to run your development, as your strategy depends largely on your situation, your purpose, and your ability. Furthermore, developing a property or properties is normally a long-term project and investment for a company. For a short-term investment such as a small house, a property developer may have the development completed within just a year, but for large-scale building investment, it may take several. These factors make property development advice from an experienced expert in the field absolutely essential to success.
Whether you’re a small development investor or a large-scale investor, a property strategy drawn up by experts is a light in the dark, providing direction and insight so you can move forward with purpose.
Having a thorough and efficient risk management plan will help you keep your project/business running safely. Property development is a large investment and nearly always involves large capital sums. Being aware of the potential risks involved and planning for them is the best way to prepare for unexpected situations.
There are many types of risks in business, such as the risk of high initial investments, liquidity of funds, complicated tax compliance, or simply human error. If you don’t have a company risk management plan in place, you are more likely to suffer greater damages and losses.
Making sure that our tax returns comply with the present tax laws can be harder than we think. Asking for property development tax advice can be the best way to earn more in return while maintaining your company’s compliance with tax law. When initially starting a business, most of us have at least heard of GST and Income tax, but other taxes like FBT and RWT are also important things to be aware of.
When filing income returns, a business owner needs to know how to process and calculate tax returns efficiently, and for many, this can be a huge challenge. If they make a mistake when filing their returns and therefore fail to comply with the tax law, a business may be faced with huge penalties from IRD.
Having an appropriate accounting and reporting system set up will help you to keep an eye on the project and track how the project is running. Once you have these systems in place, the data you accumulate in your reporting system will be easily accessible and have much more reference value as you can compare it to past data effortlessly.
Whether you’re a new investor, or an experienced one with a comprehensive property portfolio, seeking property development advice from an expert is the best way for property investors to maximise your returns and achieve your investment goals.
When it comes to property development, large investments are always involved. As a property developer accounting agency, our team of professional accountants has the knowledge and experience to assist you in your property accounting and help you develop comprehensive business strategies. Book an appointment with Premium Accounting Solution today and talk to us about your development project. We will help you maximise your profit and achieve your business goals, all while remaining compliant with New Zealand tax law.