Forum Replies Created
Interesting article Ozi.
On a seperate issue I have often wondered about those saying that the Kiwi market is 18 months behind Australia. Seeing as the last 12 months have seen negative growth in many parts of Australia does that mean that the Kiwi market as a whole has only 6 months of growth left?
I realise that you cannot generalise the whole NZ market with one brush but the idea does make you think.
I have two properties in NZ. One in Gisborne and one in Invercargill. As my wife and I need to upgrade our PPOR (kids!) I will need to sell the two Kiwi properties some time in the next 3-4 years.
Therefore I was thinking:
a) Sell at the end of the year at the peak
or
b) Ignore the negative hype as the market has a way to run yet and there are more gains to be made by hanging on for a couple of years.
I would be very interested in anyone’s thoughts.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
I know it’s an old one but I HATE the use of the word XMAS. I know it is my Christian background but still….it irritates me.
Let Christmas be Christmas.
No matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
I too brake for tailgaters. They are a menace.
No matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Michael:
Point taken about life cycles etc. The way I read it did not fit in with the rest of your post.
I too agree that Yack is largely helpful and that his first post was deliberately provactive to stir up the pot.
Unfortunately it was some of the latter replies that were not so helpful.
Kind Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Michael:
I think you are a well informed investor who is living proof against the stereotype of the ill-informed, do-it-on-a-whim, follow-the-crowd, sheep-to-the-wolves new investor.
I too am a fairly new investor and have found some of the posts in this thread condescending and patronising. It is almost as though some people feel threatened by other people wanting to make a success of investing. Hence the reason for their posts painting new investors as bumbling, fumbling fools who they will clean up from when they go bankrupt through their own stupidity.
Try not to pay too much attention to these negative posts and/or people. There are MANY other regualr contributers to this forum who will give you invaluable advice about investing. Sometimes a heads up warning about the market is needed but that is not what I hve seen generally posted on this thread.
On your theory of cycles in a persons life. I would agree to a certain extent. Maybe I misread your post but I was slighly disturbed by the notion of having certain times in life when relationships and education are important but that they are now surpassed by investing. Investing is a means to an end. Specifically it give you choices in life. These choices include more time for relationships and education. I think investing becomes a detriment to your life when it becomes an end in itself, (ie. the most important thing in one’s life) rather than been seen as a means to a greater end.
Hope this does not come across as too critical or patronising. I really admire the thought you put into this thread. You certainly balanced it out and put paid to the misconception of the no-idea newbie.
Kind Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
I think the point has been basicly made already however here is my 2c worth:
If a tenant has a formal lease and is abiding by its conditions then they have the legal rights to occupy the residence.
My understanding is to all intents and purposes it is theirs for the duration of the lease. I do not mean that they can modify the land or buildings; simply that they have the legal right to live there.
Therefore I cannot see a way around this problem unless you offer the tenant a significant financial incentive to mutually void their legally biding lease (contract).
Particularly in major cities, where house prices are getting to the point where large numbers of people will rent their whole lives, I think it is important to acknowledge the legal rights to the leased property these tenants have.
No matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Russ,
Congratulations. Sounds like you have a couple of good deals there.
The way I look at investments is that if a deal is making money for you at a reasonable risk level then you are on a winner.
Sure there may be better deals but sometimes (ie. the current market which is stagnating) you are better off with something you KNOW is good than with something which MAY be better.
Kind Regards,
Tim.No matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Thanks Robert. Will do.
No matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Thanks Ozzi:
Will do.
Kind Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Depreciater you said:
Not sure about Agile’s comment regarding depreciation not being claimable on positively gearded properties. That sounds odd.I need to clarify that I am not certain about the depreciation with + geared properties in NZ. This was an informal comment I heard and I need to research it further when I find a good accountant.
Also you are right about there being no cut off date for depreciation write offs in NZ.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
A quantity surveyor can do depreciation schedules.Good point GreatPig. You are 100% correct.
Is is my understanding that depreciation may not be able to be used as a write off for NZ property if the property is positively geared. Also as the properties are old there may not be much of a benefit to paying the quantity surveyer once his/her fees are taken out of the benefit.
Kind Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Dangermouse:
Would you be able to supply more info on the properties in NZ?
1. Did you buy sight unseen?
2. Is your gross return worked out: (52*rent per week) / Purchase price or are you calculating your yeild some other way?
3. What areas in NZ did you buy in (if you feel comfortable sharing)?
4. Not sure why you would need a surveyer at this stage unless maybe you were planning on subdividing your land. Maybe more experienced NZ investors can help you more on this one.
5. Have you sourced the finance through an Australian LOC and only using this? Ie no NZ loans. If this is the case you will need to do regular foreign exchanges from NZ to Australia.Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
I agree with Superted. (I know Superted….I could probably know you over with a feather right now[biggrin]) I have never bought sight unseen either although I have had conditional offers on property w/o having seen them. In NZ though you make a conditional offer and sign a contract with conditions eg. building inspection, finance, due dillegence etc. Noone can bid for the property while you have a conditional offer. As far as I can tell money usually does not change hands (ie 10% deposit) until you go ‘unconditional’. This means that your only costs if you decide to pull out of the contract would be for the building inspection, some legals etc. However I would certainly want to check the property out b4 putting hard money down.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Superted:
I think I will take your advice:
“Never argue with an idiot, as they will bring you down to their level and beat you with experience”Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
To Superted:
You said:
Sounds like you know all about NZ Tim and they way they think.I did say I am not well travelled. But I have been to NZ. I do invest in NZ. I do have Kiwi mates. My best man at my wedding two years ago was a Kiwi. From my time in that country (and no I am not a resident, just a visitor, so my insights are not complete) I made the opinions posted above about Kiwi’s thinking the Aussie attitude towards NZ arrogant.
Does that make me an expert? Absolutely not. However my opinions are based on actual converstations with Kiwi’s and with Aussie investors who invest in NZ.
And yes i would be happy to call you a mate if you would like. [biggrin]
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Originally posted by SuperTed:Tim the fluffy post master.
The rivalary between Aus/ NZ has nothing to do with an Australian percieved arrogance, and if you knew any Kiwis then you would know that!!
Did you readFluffy….lol…I have been called worse.
Do I know Kiwis? Err well let’s see. I invest my money over there. Go there on business trips. You work it out mate.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Recognition is irrelevant to an investor except where it increases property values and/or rents. To even hint that the reason that the NZ property market has taken off is because of recognion from Hollywood movies is absurd.
This to me is arrogant. I have read in other topics in this forum that many people consider American’s arrogant because they only really care and pay attention to what is happening in their part of the world.
Ever wonder why the Kiwi’s love beating Australia so much in Rugby, Netball or whatever other sport it is? The reason is that there is a bit of that same arrogance in Aussies when looking at NZ.
And no Monopoly this is not a personal attack on you. I simply disagree with what you are saying and am arguing my point.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Monopoly:
maybe you should be called ‘agile’ instead of me. You are certainly great at the backflip.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
an overseas market which has largely achieved huge recognition as the direct result of media popularity thanks to the LOTR phenomena.Are you kidding Monopoly? You are seriously putting the growth of NZ property values down to a movie that was made in the country.
If I was a Kiwi (I’m not but I invest there) I would find this remark extremely condescending, inaccurate and simple. Economic growth in NZ can be attributed to many things including: economic reform, immigration and a strong world economy that NZ has been able to tap into. The Lord of the Rings (and the publicity that went with it) was a very small part of the overall boost to NZ property prices.
I would be very interested to see what Kiwi’s and/or people who have lived in NZ during the last 10 years attribute rising property values in NZ to.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
Superted:
This will be my last response to you on this particular topic.
I find it sad that you cannot accept (note i did not say agree) with differing arguments from your own.
Another reason I do not wish to discuss this further with you is that I find that you continually make this into a personal attack. For example when have I ever trash talked Australia?
I love this country and its people and it is for that reason that I speak up on issues that I think affect our way of life in Australia. I would not live long term anywhere else in the world.
Would you rather I said nothing because my view is different from yours. This to me goes against the Australian ideal of ‘the fair go’ and that everyone has a right to be respectfully heard.
Having said that I wish you well and hope that if we ever correspond in future it is in a more amicable way.
Regards,
TimNo matter what I say, what I believe, and what I do, I’m bankrupt without love. (1 Corinthians 13:3b – The Message)
