Hi guys
Abit of background – im a 29 yr old NZ'er living in WA – Back in 2007 i owned a property in Auckland for 3 years and sold up to make a healthy little sum to travel the world with.
Fast forward 3 years and im back on the property band-wagon again.
Ive currently bought a property in my own name and partners name our (PPOR) last August (2012) so my 'personal debt' im guessing is not too favourable when it comes to borrowing capacity at the present moment.
Im half way through reading Steve McKnights book and finding it a revelation because i never understood how negative gearing could work over several different properties – i looked into this when i owned my first house.
My objectives are to invest in residential property in NZ around the 100k mark to gain some positive cash returns, and add to that portfolio in and around the same buying prices over time – reasons are much the same as others on this website – no CGT, rental returns outway anything ive seen in wa, i know the areas particularly well having spent 20 odd years there.
Im pretty close to having my first deposit available so thought id get abit more serious about it and really knuckle down my understanding before going ahead.
I guess my questions are:
Do i need to put my current PPOR into a Trust to give me the best opportunity with the banks for my first couple of investments?
Does anyone know of a good Lawyer and Accountant based in NZ to help me get setup for my venture?
Can somebody explain in more detail Steves chapter on borrowing capacity? where he describes that on a wage of $100,000, the banks could potentially lend you $300,000 assuming you have the deposits available?
Can i setup multiple trusts at will? What can i expect my limitations to be?
Anyone else had the same ideas as me with regard to investing in NZ and done so? I'd love to hear how it went and the barriers that were faced.
Any advice would be a huge help – Thanks in advance.
Hi I was into investing in New Zealand up until November 2005 after that my focus has been in the United States where you can obtain better opportunities. In America you can buy properties and borrow around 60% and get a cash flow of around 15-16%. Now I do not think you can get this in NZ. I thin k in America you will have the added bonus of capital growth as well as cash flow.
Nigel Kibel | Property Know How
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mrpeterb wrote:/>Do i need to put my current PPOR into a Trust to give me the best opportunity with the banks for my first couple of investments?
Does anyone know of a good Lawyer and Accountant based in NZ to help me get setup for my venture?
Can somebody explain in more detail Steves chapter on borrowing capacity? where he describes that on a wage of $100,000, the banks could potentially lend you $300,000 assuming you have the deposits available?
Can i setup multiple trusts at will? What can i expect my limitations to be?
Anyone else had the same ideas as me with regard to investing in NZ and done so? I'd love to hear how it went and the barriers that were faced.
Any advice would be a huge help – Thanks in advance.
Why would you want to put your PPOR in a trust? You may incurr land tax and will CGT and stamp duty. Little benefits gained.
Banks generally lend around 5 times your annual income – very rough guide.
You can set up multiple trusts. Your limitations will be your ability to pay for the set ups and running costsTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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