Currently have a property in Purakanui which is just out of Dunedin in lovely settlement. Has old 2 bedroom bach, no bathroom or power ever been connected. I am servicing the mortgage but would like to rent out property. Land price was 90k for 1300sq m. If I build a small house spending around 150k (incl septic & pwr etc) would I go into a different tax bracket because I've developed the property?
Also just bought a property on West coast at Te Waitere (south of Kawhia) beautiful spot. Has 2 b/d bach and 3 b/d house. My retirement/long term investiment. Can't get tenants though because of distance from public facilities. Suggestions?