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Actually, Australia has an even more restrictive policy. This is enforced by the FIRB (Foreign Investment Review Board).
Foreigners need to be granted permission by the Aussie Govt in order to buy residential property. This permission is mostly granted for brand new buildings that no one has lived in before. Most applications for residential properties that are not new is rejected.
So, what NZ is doing is not really that unreasonable at all.
Talking about bad agents, if we have a personal experience, can we name the bad agent and explain why they are bad in this forum ?
Guess the same goes for tradies, lawyers, banks, etc …
Skippygirl, your assumptions are spot on and its nice to know of someone who have started the same way I have (though mine is -ve geared from day 1).
Yes I am considering the lease-option strategy as depicted in Steve’s book. I am in the process of doing research on it as it seems to be simpler than wraps. Its still a big step to me as I am a simple investor and I’ll probably need to find a solicitor who can draw up good lease option contracts.
I am a simple man who is just embarking on a long journey as a serious property investor. I am learning a lot of things on the way especially from books like Steve’s and through active forums with amazing people.
Thanks again for the feedback everyone !
I total agree with holding on at least the 1 yr to minimise CGT and if I do sell the apmt it will be after that period has elapsed.
I guess I’m a bit demoralised by how -ve geared it is and the effort that it will take to convert it to +ve geared.
I did some quick calcs and I would need to pump about $100K into the investment loan before the apmt becomes +ve geared ! In addition capital gains for apartments in Sth Yarra over the past 5 years have only gone up around 10%-20% I think.
I think my situation is quite common to many people who have picked up Steve’s book. Hope this topic helps people who have bought a couple of properties -vely geared, and are wondering how to restructure their portfolio to +ve geared.
Wow ! Thanks everyone for the quick responses !
The apartment is not new by any means. My guess is that it was built in the 70s or early 80s (I think). I have been trying to get hold of documents relating to the cost of contructing the building so I can claim my share of the building depreciation. But so far no luck.
I bought the apartment before I read Steve’s book so I guess I was “suckered” and went with the crowd on the -ve gearing hype. Thankfully, I have a very stable tenant thus far.
The reason I raised this topic is because I was wondering would I be better off selling the apartment and using that few hundred dollars towards a +ve cashflow property instead.
Again thanks for everyone’s advice !
Has anyone’s property been affected by the NZ earthquake and flood ? I saw it on the news yesterday and it was really scary stuff.
Hope the insurance will help out anyone here whose investment was affected by it.
Talking about authors, has anyone read the Anita Bell books ?
I am from moody (the weather) Melb.
I noticed that PM charges for Melb sururbs (5-7%)are a lot cheaper than VIC regional areas (7-9%).
Anybody from VIC care to comment ?Originally posted by Derek:Hi Falcon,
In general terms lenders will only lend to 80% of te value of the purchase. You, as the buyer, have to find the other 20% + costs.
This can either be done using cash (not recommended) or a line of credit set up against the value of an existing property.
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Derek
[email protected]Forgive me, but being a newbie to this game, I am a bit confused by the line of credit vs cash point.
If I get a line of credit for the 20% deposit (instead of using cash) and get a loan for the other 80%, isn’t this the same as borrowing 100% to buy a property ? I thought 100% borrowing is constantly being discouraged in the forums here. I am confused.
That is a very precise answer. I read up on the ruling you mentioned and it’s a bummer ! … Thanks !
