Forum Replies Created
- Ahhh interesting times afoot.
Lucky to be an expat I enjoy talk of falling OZ dollar and interest rates, 30% payrise over the last 6 months. Doesn't quite make up for the past few years but welcome.
At present we are battening down the hatches, creating good buffers for possible difficult times. A year or two should provide clarity and a brief slow down in our growth is good insurance against possible dire times ahead.
( The world is still reluctant to mention credit card debt, yet to come. )
Not too fussed with drop in prices as we have 80% commercial but tenants are our number one concern and a weak economy will test our skills.
Good news – this is likely to be the worst financial crisis we shall see in our lifetimes and should we ride out the storm, we will emerge with greater knowledge and confidence for the future.
Hi all,
Have resided in Dubai for almost 11 years and although we have a number of commercial and residential properties in OZ and NZ – WE do not have any here.
We are however surrounded by many friends and assocaites who have invested in Dubai. There has been fortunes made.
Only my advise – now is the time to be very careful, this market is like no other. There is always a lack of clarity and information and should you not be getting your capital gains – there are many hidden costs. With the current world financial market – no one is immune.
By all means look but do your due diligence. There is an unbelievable amount of units hitting the market, villas a better bet.Repeating myself from another subject but seems appropriate.
Ahhh interesting times afoot.
Lucky to be an expat I enjoy talk of falling OZ dollar and interest rates, 30% payrise over the last 6 months. Doesn't quite make up for the past few years but welcome.
At present we are battening down the hatches, creating good buffers for possible difficult times. A year or two should provide clarity and a brief slow down in our growth is good insurance against possible dire times ahead.
( The world is still reluctant to mention credit card debt, yet to come. )
Not too fussed with drop in prices as we have 80% commercial but tenants are our number one concern and a weak economy will test our skills.Not quite ready to fill the back yard with chickens but I feel a good time re evaluate your position and give a little thought as to how you will approach the next couple of years.
Good news – this is likely to be the worst financial crisis we shall see in our lifetimes and should we ride out the storm, we will emerge with greater knowledge and confidence for the future.
1508 – wealth score is good to get a feel for your progress should you keep the results. For actual results I have always kept my own 6 months Income Statement and Balance sheet – vital to all in this game and quite satisfying and revealing to occasional sit and reveiw your progress over the years – good and bad.
As LA Aussie suggested, no provision for income, all to technical for me but maybe its possible Steve.
With 80% of our portfolio in Commercial, including income ( our retirement income ) would be of value.
Right now we are battening down the hatches, creating buffers for the next couple of years – the world hasn't touched on credit card debt yet.
Great news is though, see yourselves through this ( likely the most devistating world financial crisis in your life time ) and you
will come out the other end with a wealth of experience and confidence.
Prosperity to all.Hi Erik,
( From another expat )Well done, looks like you have built a nice future for yourself and the family.
We too have been debating the cashflow versus LOE. Having built a predominently commercial property portfolio we are now 5 years away from our planned retirement date and in a quandry. Pay down the commercials and pay the tax man his 30% pa but a comfortable income ( all be it with the slightly higher risk associated with comm ) or concentrate all efforts for the next 5 years building good located residential side for capital growth and LOE.I would like to say however that we are at present getting a LOC extension for increased equity in the residentials and the banks and their valuers are far from as accomodating as they have been in the past, well dragging their feet. Sure it will proceed but at a reduced level than we had anticipated and taking considerably longer to finalise.
NOT sure I would enjoy these periods during retirement. And I really think we are a little blessed with a healthy economy and this really is just a soft patch, thankfully I am not trying to find some retirement funds in the UK or USA.
CheersHi Robyna,
Exciting times, lots of equity to expand your capital base.
Nice reply from Trakka.Thanks guys,
In answer to your questions Elka, at this stage our properties in OZ are all in individual names. The trust in OZ is to be set up in order to alleviate possible complications from the kiwi side, when we return to OZ we have been advised that the KIWI IRD may consider the trust non conforming ( No NZ based settlor ), very unpleasant tax consequences.
WILL certainly investigate the laying off NZ income against Aussie – will let all know progress.Thank Terry,our NZ trust appears to be setup in a manner that allows us to nominate the OZ Trust as a beneficiery.
Few grand thrown at this already but after meeting a firm at a Melbourne seminar, appears this beneficiary trust is the go.
And yes at this stage, still no CGT , Stamp Duty or Land Tax. We are still finding good commercial deals at the moment, although yields down to high 7,s, the lack of costs helps.
Hope everyone had a good New Year.Hi all,
Word of caution on NZ, get good advise on your structure. I am more than likely, shortly, to sell my commercials in NZ back into individual names, BUT – thats because I have a NZ comp/trust structure, which it appears I will be punished for tax wise, when I return to OZ. My point is, that if your Aussie, keep your structure Aussie. And if anyone can come up with info on a better structure than individual names – please let me know.
ps. Very happy with the properties, good yields a little hard to find at present though.
CheersPurely on the topic of LOC, can someone explain in detail their negative thoughts, rather than sweeping statements.
We have 3 properties on a LOC and when the time is right will revalue to increase the limit to make another purchase. As far as I am aware, as long as we stay within the 20 equity / 80 loan ratio, we can continue indefinately ( excluding serviceability ).
Regards
25 North
